Pa. leaders respond to Biden's proposal
President Joe Biden’s call Wednesday for a $2.3 trillion investment in the nation’s infrastructure met with mixed reactions among Pennsylvania state lawmakers.
Biden unveiled his plan at a carpenters union training center in Pittsburgh, where he called his plan “a once-in-a-generation investment in America, unlike anything we’ve seen or done since we built the Interstate Highway System and the space race decades ago.”
Biden also said it would be the largest investment in jobs since World War II.
Conservatives worried that the investment would require hefty tax increases and balloon already large government spending.
“It will create millions of jobs, good-paying jobs,” Biden said. He said he hopes to pass an infrastructure plan by summer.
U.S. Rep. Mike Kelly, R-16th, a senior member of the Ways and Means Committee, criticized the spending plan.
“Biden’s proposal will take more money from workers, families and small businesses, leading to lower wages and more jobs being sent overseas,” Kelly said. “America needs creative, bipartisan solutions to modernize America’s aging infrastructure that spur investment, not higher taxes on hardworking Americans.”
Biden’s outline aims at a small increase in taxes for the wealthiest Americans. According to the plan, the government would raise the corporate tax rate from 21% to 28%, one of the measures that over 15 years would cover the cost of the infrastructure program and then help to reduce the budget deficit.
The plan also would also impose a 21% global minimum tax, so that companies cannot avoid taxes by shifting income to low-tax countries; make it harder for businesses to merge with foreign companies to avoid U.S. taxes, a process known as inversion; eliminate tax breaks for companies that shift assets abroad, and denying deductions for offshoring jobs; impose a 15% minimum tax on the income that corporations report to shareholders; and increase IRS audits of large corporations
U.S. Sen. Bob Casey, D-Pa., called these methods “common-sense ideas for how to finance these investments.”
“Congress should quickly move forward on this legislation,” he said.
But U.S. Sen. Pat Toomey, R-Pa., warned against excessive government spending.
“Pre-pandemic, the federal government was spending around an eye-popping $4.5 trillion annually,” Toomey said. “We added $4 trillion in additional spending in response to the pandemic and recession last year. This year, the Biden administration wants to do even more total spending, despite the fact that the economic recovery is well underway.”
Toomey said that Biden’s administration is spending too much and criticized the president for trying to remove part of President Donald Trump’s Tax Cuts and Jobs Act.
“Rather than offsetting this enormous spending binge responsibly, the Biden administration is pushing a massive tax increase by undoing large portions of the Tax Cuts and Jobs Act,” he said. “That 2017 tax reform helped create the best American economy of my lifetime. We should be trying to get back to that economy, not making American workers and businesses less competitive globally.”
But the United Steelworkers union said that an infrastructure investment was “long overdue.”
Tom Conway, the union’s international president, said, “This is one that, in addition to repairing our crumbling roads, bridges, waterways and other transportation networks, also ensures that we have state-of-the-art schools, reliable communication systems, robust public health and much more.”
