San Diego Union-Tribune (Sunday)
IS BIDEN ON THE RIGHT TRACK?
The president wants $2 trillion to re-engineer America’s infrastructure and expects corporations to pay for it.
YES
In its most recent Report Card for America’s Infrastructure, the American Society of Civil Engineers gives the nation a grade of C minus. The Biden plan includes needed investments in the country’s physical infrastructure for transportation, electric vehicles, public mass-transit, high-speed broadband, and water along with expenditures on school construction and R&D. Spending over eight years on these components of the plan will boost U.S. productivity and long-term economic growth.
YES
Merriam-webster defines infrastructure as “the system of public works of a country” and also “the resources (such as personnel, buildings, or equipment) required for an activity.” It should include all transportation (roads, bridges, airports, ports, rail) and utilities like the electric grid and water systems. Changing technology means that things such as high-speed Internet and electric charging stations are important too. Finally, there is human infrastructure such as health, education and housing. All this is needed to be globally competitive and to improve people’s lives.
NO
The plan is to pay for all this with higher taxes on corporate profits. The core question is whether the projects that President Biden wants to fund will do more for America than the projects that businesses would fund with those profits. Investments made with corporate profits brought us smartphones, electric cars, a resurgence of U.S. energy production, and the life-saving COVID vaccines. Scooping up corporate profits to pay for the Democrats’ wish list is incredibly short-sighted.
YES/NO
Focus on the nation’s neglected basic infrastructure and R&D is long overdue. A national charging station network could induce greater electrical vehicle acceptance. Expanded high-speed broadband could eliminate digital divides. The $2.3 trillion plan, however, is too large, broad, and complex. It extends into areas beyond infrastructure and risks the bureaucracy, cost overruns, and delays plaguing many government programs (e.g., California’s high-speed rail). A smaller, more targeted bill would be more fiscally appropriate.
YES
Biden’s plan is ripe to address the infrastructure and post-pandemic economic recovery. Equity measures like expanding broadband Internet access and boosting research and development by historically Black colleges and universities add value. Challenging is Biden’s funding proposal — increasing the corporate tax rate to 28 percent from 21 percent. The Business Roundtable, U.S. Chamber and Association of Manufacturers fear the hike could have a reverse effect by stifling business and manufacturing progress.
NO
There’s no doubt that U.S. infrastructure needs repair and modernization. But at what cost to taxpayers and businesses? We have spent an estimated $4 trillion to date in pandemic relief. The national debt is at $28 trillion and growing. Now the president wants to spend $2 trillion on his infrastructure plan. The plan calls for raising the corporate tax rate from 21 to 28 percent and increasing the global minimum corporate tax. U.S. businesses and the middle class will likely be affected. This could slow economic recovery while making the U.S. less competitive globally.
YES
The broad spending bill addresses not only neglected infrastructure (we spent $1 trillion less just the last decade vs. the previous) but invests in public schools, alternative energy, broadband Internet, etc. The bill is a vehicle to pass first steps toward many of the Democrats’ priorities. To fund the ambitious plan, Biden proposes increasing corporate taxes and tangible means to close loopholes. To be most effective, Treasury Secretary Janet Yellen’s proposal for a global minimum corporate tax to reduce large-scale tax avoidance is needed.
NO
I am all in for infrastructure but am opposed to adding in free community college, universal pre-k, national paid leave, health insurance subsidies, and anti-growth green and labor union regulations, all under the guise of infrastructure. What we need are roads and bridges modernized, improved broadband, 5G and cybersecurity. The COVID-19 Relief Plan ended up being a “stimulus” bill. This may as well be the “Green New Deal.” Taxes will never pay for this!