President Joe Biden on Monday began talks with Senate Democrats on a $3 trillion package to invest in infrastructure, green energy, education, and family assistance, The Associated Press reports.
The White House is planning to release the legislation in two pieces with one focusing on infrastructure and another focused on aid to workers and families.
Though Biden and Democrats have said they hope to gain bipartisan support, a growing number of Democrats have said they plan to use budget reconciliation like they did with the $1.9 trillion coronavirus relief package to pass it with a simple majority.
“We need to get it done,” Connecticut Democrat Richard Blumenthal told the AP.
House Speaker Nancy Pelosi has already asked Democratic committee heads to “craft a big, bold and transformational infrastructure package” and vowed to build on the conavirus relief bill by helping “people in every zip code by creating good-paying jobs for the future.”
What’s in it?
The package is expected to include about $1 trillion to fund roads, bridges, rail lines, electrical vehicle charging stations, and expand cell networks while moving toward green jobs and cleaner energy.
The other component would include funding for universal pre-K, free community college, expanded child benefits and Obamacare subisides, $200 billion for housing assistance, and $100 billion to develop green energy sources.
Biden plans tax hikes:
The bill is expected to include multiple tax increases on households earning over $400,000. Biden has vowed not to increase any taxes on those earning below that figure.
Biden is expected to call to raise the corporate tax rate from 21% to 28% and raise the top income tax rate to 39.6%.
The proposal is also expected to end fossil fuel subsidies, tax capital gains or investment gains over $1 million as wage income, and tax assets passed on as inheritances.
Some big state Democrats had also pushed to repeal a cap on the State and Local Tax Deduction, essentially cutting taxes on people in states with high tax rates, but that proposal was rejected.
None of the provisions have been finalized and may change.