President Joe Biden speaks to press officials on the South Lawn after returning to the White House on March 21, 2021 after a trip to Camp David, Washington.
Erin Scott | Reuters
The White House will consider splitting an estimated $ 3 trillion recovery proposal into two bills, the New York Times reported Monday.
President Joe Biden looks to make more money for the economy after his top priority, a $ 1.9 trillion coronavirus aid package, expires this month. His administration and Democrats hope to renew the country’s infrastructure, combat climate change, and fuel an improving US economy.
White House press secretary Jen Psaki downplayed the Times report on Monday. In a statement to NBC News, she said, “President Biden and his team are considering a number of possible options for investing in working families and reforming our tax codes to reward work, not wealth.”
“These talks are ongoing, so speculation about future economic proposals is premature and does not reflect the thinking of the White House,” she said.
The Times reported that the president’s advisors were due to come up with a plan earlier this week that would split the restoration proposal into two parts. According to the newspaper, money would be invested in promoting production, improving transport systems, expanding broadband access and reducing CO2 emissions.
The other would focus on reducing economic inequalities by investing in paid vacation, universal pre-K, and community college, the report said. Biden is expected to pursue the infrastructure component first.
It is now unclear whether Republicans would back any part of Biden’s recovery plan. The GOP has generally spoken out against the president’s plans to raise businesses and the richest Americans to pay for the initiatives.
The Dow Jones Industrial average hit an intraday high on Monday, rising more than 110 points, according to the Times report. The reported price of Biden’s plan is higher than expected by most Wall Street companies, including Goldman, as most saw around $ 2 trillion in infrastructure. Caterpillar shares traded higher after the news.
White House spokespersons, Senate Majority Leader Chuck Schumer, DN.Y., and House Spokeswoman Nancy Pelosi, D-Calif., Did not immediately respond to requests for comment.
Read more about CNBC’s political coverage:
While politicians on both sides of the political corridor believe that US infrastructure needs to be repaired, they disagree on what items to pay for and how best to fund the massive enterprise.
Some moderates, including Conservative Democratic Senator Joe Manchin of West Virginia, have made it clear that they will only vote for a plan that is a real attempt at bipartisanism and will be paid for almost in full. Democrats approved the pandemic relief package by budget vote alone, and some members of the caucus have endorsed the use of the process to pass an infrastructure plan.
Biden met with non-partisan senators about infrastructure earlier this month. A group of 20 senators from both parties reportedly met last week to discuss another major political initiative in Congress.
During his presidential campaign, Biden said he was open to tax increases to pay for various items on the agenda. At the time, Biden supported raising the corporate tax rate to 28%, which would amount to partially reversing President Donald Trump’s landmark tax cuts for 2017.
Biden has also advocated raising the highest marginal tax rate to 39.6% and taxing capital gains and dividends at the higher ordinary income tax rate.
Read the full Times report here.
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