President Joe Biden is expected to unveil on Wednesday a $2.25 trillion U.S. infrastructure plan, a move the administration expects to fund by reversing the Donald Trump corporate-tax cuts.
The U.S. "is the wealthiest country in the world, yet we rank 13th when it comes to the overall quality of our infrastructure," the White House said in a Wednesday statement.
"After decades of disinvestment, our roads, bridges, and water systems are crumbling. Our electric grid is vulnerable to catastrophic outages. Too many lack access to affordable, high-speed Internet and to quality housing."
The eight-year plan has four parts. The bill sets aside
-- $620 billion for transportation, including a doubling of federal funding for public transport
-- $650 billion for home-quality-of-life improvements, like clean water and high-speed broadband
-- $580 billion to strengthen American manufacturing, $180 billion of which goes to non-defense research and development
-- $400 billion to address improved care for the elderly and people with disabilities.
To pay for the bill, Biden's plan would increase the corporate tax rate to 28% from 21% and set a 21% minimum tax on global corporate earnings. The administration said that the tax increases would fully pay for the plan over the next 15 years.
The plan "will invest in Americans and deliver the jobs and opportunities they deserve," the White House said.
"But unlike past major investments, the plan prioritizes addressing longstanding and persistent racial injustice. The plan targets 40 percent of the benefits of climate and clean infrastructure investments to disadvantaged communities.
"And the plan invests in rural communities and communities impacted by the market-based transition to clean energy."
This plan is expected to be the administration's first round of infrastructure initiatives. A second round is expected to be announced in mid-April and focus on health-care costs, child care and education.
Critics say that reversing former President Trump's tax cuts could hurt major trading indexes, which have jumped since the Tax Cuts and Jobs Act was passed in 2017 along party lines.
The law created a single corporate tax rate of 21% at a cost of about $1.9 trillion over 10 years.
At the same time, infrastructure and manufacturing companies like Caterpillar (CAT) - Get Report, General Electric (GE) - Get Report, 3M (MMM) - Get Report and Honeywell (HON) - Get Report could be big beneficiaries if the bill passes the legislative process.