Featured Image

Biden Introduces Infrastructure Plan

President Joe Biden pledged to build a modern, sustainable infrastructure and an equitable, clean energy future during his campaign. At the end of March, he took the first step by introducing a massive spending proposal...
Apr 05, 2021

President Joe Biden pledged to build a modern, sustainable infrastructure and an equitable, clean energy future during his campaign. At the end of March, he took the first step by introducing a massive spending proposal that includes much more than infrastructure. According to the White House, the $2.3 trillion American Jobs Plan would be the most extensive jobs package of its kind since World War II. It’s so large that it will take 15 years to pay for eight years of spending. 

The plan includes traditional infrastructure projects. With a focus on climate change, it also expands electric vehicle use, cleans up water systems, and expands broadband access. The biggest news for manufacturers is that it invests $580 billion in the manufacturing sector, worker training, and R&D.  

 The provisions include: 

  • A new Commerce Department office dedicated to monitoring domestic industrial capacity. 

  • $50 billion in semiconductor manufacturing and research. 

  • $20 billion for regional innovation hubs. 

  • $52 billion in existing capital access programs. 

  • Support for modernizing manufacturing supply chains, including the auto sector.  

  • For a breakdown of the plan by PoliticoPro, click here.

Unfortunately, the spending proposal came with the Made in America Tax Plan that raises taxes on businesses to help pay for it. The tax plan partially rolls back the low rates former President Donald Trump enacted in the 2017 Tax Cuts and Jobs Act by raising the corporate tax rate from 21% to 28%. It also increases the minimum tax on U.S. multinational corporations to 21% and eliminates the rule that allows U.S. companies to pay no taxes on the first 10% of returns when they locate investments in other countries. 

Former Presidents Trump and Obama pledged substantial infrastructure improvements while in office but failed to get a package through Congress. Even though rebuilding the country’s infrastructure is bipartisan, the details are not so straightforward. Biden’s revenue raisers have vocal opponents. Senate Minority Leader Mitch McConnell indicated the plan is dead on arrival, while some Democrats don’t think it goes far enough. Biden signaled a willingness to compromise, but Democrats will not rule out using the same procedural tool, budget reconciliation, used to pass the $1.9 trillion pandemic relief bill in March without Republican support.   

Details are still emerging on the president’s infrastructure package. AMT is reviewing and assessing benefits versus costs. While the association supports several aspects of the spending package, it does not support paying for it with tax increases on manufacturers. Please contact your members of Congress to let them know how you feel about the proposal. If you need help, contact me at athomas@AMTonline.org

Biden will introduce part two of his economic recovery plan in the coming weeks. Dubbed the American Families Plan, it will include child care and health care reforms. 

PicturePicture
Author
Amber Thomas
Vice President, Advocacy
Recent advocacy News
It’s been a rough year in Washington. Partisan divisiveness and party infighting obstructed real legislative work, while domestic and geopolitical unrest necessitated action. Here’s a review of what happened and what’s ahead that will impact manufacturing.
AMT Vice President for Advocacy Amber Thomas reviews activity on Capitol Hill and her work with a bipartisan group to reverse changes enacted as part of the Tax Cuts and Job Act that hamper manufacturing innovation and competitiveness.
As manufacturing technology providers, we have the power to make a big impact on the health of our planet. AMT is embarking on a series of articles investigating the issues surrounding sustainable manufacturing.
At AMT’s 2021 MFG Meeting and MTForecast Conference, Nov. 2-5, in Denver, Colorado, Larry Sabato will examine the latest political environment in Washington, D.C., and state capitals. He’ll share his observations and predictions on the 2022 ...
Today, the House approved the $3.5 trillion budget blueprint and set a Sept. 27 deadline to vote on the $550 billion infrastructure bill – days before transportation funding runs out on Oct. 1.
Similar News
undefined
Technology
By Bonnie Gurney | Feb 08, 2024

At IMTS 2024, discover unexpected solutions, including haptic feedback to improve remote robot operation and digital training, quality control software, additive manufacturing powders and gases, services to address labor issues via an app, and more.

5 min
undefined
Advocacy
By Amber Thomas | Jan 31, 2024

Last fall, the U.S. Environmental Protection Agency issued two rules relating to toxic substances that significantly impact manufacturers and suppliers. Learn about these guidelines affecting PIP (3:1) and PFAS – and how they affect your business.

5 min
undefined
Advocacy
By Amber Thomas | Dec 13, 2023

It’s been a rough year in Washington. Partisan divisiveness and party infighting obstructed real legislative work, while domestic and geopolitical unrest necessitated action. Here’s a review of what happened and what’s ahead that will impact manufacturing.

5 min