President Joe Biden on Wednesday outlined a $2.25 trillion infrastructure-spending plan as he moved to take advantage of slim Democratic congressional majorities to pass a key campaign promise that is seen as benefiting a wide variety of industrial and alternative-vehicle companies.
The proposal includes a doubling of federal funding for public transportation, $650 billion for clean water and high-speed broadband, more than $500 billion in spending on manufacturing, including $180 billion for non-defense research and development, and $400 billion for improved care for the elderly and people with disabilities.
Speaking in Pittsburgh, Biden said the proposal would "rebuild the backbone of America ... from the bottom up and the middle out." The president added that it represented a "once in a generation investment in America."
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.
He specifically called out Amazon.com (AMZN) as one of 90 major corporations that don't pay any federal income taxes, saying, "That's just wrong."
The plan targets 40% of the benefits of climate and clean infrastructure investments to disadvantaged communities.
It follows the passage earlier this month of a $1.9 trillion stimulus plan that saw $1,400 payments to most Americans as well as other benefits aimed at boosting the U.S. economic recovery from the COVID-19 pandemic and related economic shutdowns.
Biden said that later this spring he would unveil details of another multitrillion-dollar program targeting health care.
Progressives have criticized the jobs proposal as falling short of what’s needed, while Republicans complain that the increase in taxes will undo corporate gains during the Trump administration.
Some congressional Democrats are moving to tie approval of the plan to the repeal of limits on mortgage-interest deductions imposed by Republicans during the Trump administration. The caps are seen as having hurt wealthy homeowners in predominantly blue states.
Biden's proposal includes a plan to build as many as 500,000 electric-vehicle-charging stations.
Shares of Tesla rose $32.31, or 5.1%, to $667.93 in the regular session but slipped in after-hours action.
Shares of Amazon.com fell 0.1% to $3,090 in after-hours action.