The president is unveiling one of the most expensive spending bills in American history today in Pittsburgh with $2 trillion in new spending and $2 trillion in new taxes.
President Biden's proposal includes a vision for massive spending on the nation's infrastructure. He's hoping to keep the momentum going from his first big legislative win to achieve some of his other major objectives. But the price tag may be to high even for some in his own party.
During his first presidential presser last week, Biden continued his victory lap, saying the new $1.9 trillion law is having an immediate impact on the economy.
"Since we passed the American Rescue Plan, we're starting to see new signs of hope in our economy," Biden said. "Since it was passed, a majority of economic forecasters have significantly increased their projections on the economic growth that's going to take place this year. They're now projecting it will exceed 6%, a 6% growth in GDP."
Now the president is gearing up for his next big initiative – a multi-trillion-dollar plan for America's infrastructure that he says will also bolster the country's financial outlook.
"The speech is really about his vision. His vision for creating jobs, good-paying union jobs and really investing in the industries of the future," White House Press Secretary Jen Psaki said Tuesday. "But he thinks it's a responsible thing to do to propose a way to pay for that over time and he believes there's more that can be done to make the corporate tax code fair."
The proposal includes:
- $621 billion to modernize transportation infrastructure
- $400 billion to help care for aging and those with disabilities
- $300 billion to boost the manufacturing industry
- $213 billion on housing
- $100 billion to expand broadband access
"You cannot tax and spend your way to prosperity," said economist and former Trump financial advisor Stephen Moore. "They're taxing you coming and going under this bill and it's going to have very negative effects. This is going to be one of the most expensive spending bills in American history, on top of the most expensive bill in American history that we just passed less than a month ago."
Moore says the massive spending is a bad idea, especially when it will likely be paid for in part by tax increases on businesses as well as wealthy families and investors.
As far as taxes go, the biggest item is raising the corporate rate from 21 to 28 percent. Other proposals include increasing taxes on foreign earnings by U.S. companies, raising capital gains taxes, and hiking the rate on those making more than $400,000 to 39.6 percent.
Despite the distaste for raising taxes, the Biden administration insists the need is too great to delay.
"Now is the time to create millions of good jobs for American workers," said Transportation Secretary Pete Buttigieg. "Now is the time to clear the backlog and repair our highways, roads, bridges, maritime ports, airports and more."
"We're ranked 85th in the world in terms of infrastructure," Biden argued.
Still, the plan's hefty price tag may prove to be a hard sell and not just for Republicans who have said they won't support it.
"This is just, I want to stress, the beginning of the process, the beginning of a negotiation," Axios Political Reporter Hans Nichols said on Faith Nation. "There are a lot of Democrats, we know Manchin and Sinema in the Senate, but House Democrats as well who are saying actually not so fast. There may not be consensus to raise that much money."
Next month the White House will present another plan on what the administration is calling human infrastructure, including programs like healthcare and childcare.