In the row over a massive infrastructure program, US President Joe Biden announced an agreement after weeks of negotiations. “We have a deal,” the Democrat said after meeting top senators from both parties. In a short message service Twitter, Biden wrote that the infrastructure package would create “millions of American jobs.”
The total size of the package is still unclear. Recently, an eight-year program worth nearly $1 trillion has been under discussion; According to US media reports, the total volume of the settlement is now around $950 billion. Biden had originally targeted $2.25 trillion in spending. Among other things, bridges and roads will be renovated with money.
Republican Senator: No tax increase planned
One thing is clear: The compromise still weighs on the already lush US budget, even if tens of billions of previously unused coronavirus aid are reallocated. According to media reports, the package will require $550 billion in new funds, with the rest of the budget items being reallocated. In general, the United States planned to spend the budget six trillion dollars.
And how the additional funds will be financed is still not clear in detail. But Republican Senator Rob Portman said after meeting Biden that the agreement did not include any new taxes. Because of the hardline majority in the Senate, Biden needs the support of at least some Republican senators.
Originally, Biden announced plans to increase taxes on the wealthy and corporations. When it comes to corporate taxation, he recently backed away from negotiations with Republicans — and offered to drop the corporate tax increase. Instead, a minimum tax rate of 15 percent must be set.