President Joe Biden’s long-awaited Build Back Better package, a follow up to the $1.9 trillion American Rescue Plan, will be split into two separate legislative proposals, the White House said Sunday, adding that new details on infrastructure investments–the plan’s first part–will debut Wednesday, with more to come on healthcare and childcare in late April.

 

KEY FACTS

Speaking to Fox News’ Chris Wallace on Sunday, White House Press Secretary Jen Psaki said President Joe Biden will debut the first part of his Build Back Better plan in Pittsburgh on Wednesday, confirming reports over the past week that the president would split the plan up into two proposals.
She also confirmed the plan’s first part will tackle infrastructure but dodged a question about whether Democrats would work to pass the plan without Republican support, as was the case with the American Rescue Plan, saying instead that rebuilding roads and railways “isn’t a partisan issue.”
The president will “have more to say later in April about the second part of his recovery plan,” which is set to include provisions on healthcare and childcare, Psaki said, adding that “it’s a crisis right now, the number of women who have left the workforce.”
Biden is also set to introduce “some ways to pay for [the package], and he’s eager to hear ideas from both parties as well,” Psaki said without referring to tax hikes, but likely referring in part to the president’s campaign proposal to raise the corporate tax rate to 28% from 21%.
Though Psaki gave no further details on tax hikes, officials are reportedly discussing raising taxes on the ultra-wealthy, raising the global minimum tax (an international tax levied on multinational corporations) from 13% to 21%, eliminating subsidies for fossil fuel companies and imposing U.S. tax rates on multinational corporations.
 

CRUCIAL QUOTE 

“We’re not quite in the legislative strategy yet, but I will say that I don’t think Republicans and the country think we should be 13th in the world as it relates to infrastructure, roads and railways,” Psaki said Sunday. “That’s a lot of what the President will talk about this Wednesday; then he will have… another proposal that he will put forward in just a couple of weeks that will address a lot of issues that American people are struggling with–childcare and the cost of healthcare.”

KEY BACKGROUND

Details on Biden’s Build Back Better plan have been vague thus far, but last Monday, Psaki last week said the plan’s “focus will be on jobs,” along with infrastructure, caregiving and “making sure the tax code rewards work and not wealth.” According to the New York Times, Biden may be about to “usher in the largest federal tax increase since 1942,” and that should make it difficult to get Republicans on board with the plan. In a note to clients Friday, market expert Adam Crisafulli, the founder of Vital Knowledge Media, said “investors should be prepared for weeks and weeks of tax hike threats, although rates at the end of the day may not rise dramatically,” given the opposition big hikes will face in an evenly split Senate with very vocal moderate Democrats.

TANGENT

Republican lawmakers have already signaled early opposition to Biden’s plan. “That’s a hell of a way to make tax policy,” Sen. John N. Kennedy (R-La.) said last week of tax hikes specifically targeting wealthier Americans. “You don’t make tax policy on the basis of class.” Others have suggested they won’t negotiate on either of the two proposals if reconciliation, the budgetary process that would allow only a simple majority of votes for legislation to pass, is used. “It’s a pretty cynical ploy to try and appeal to Republicans to vote for all that [infrastructure] stuff, and then do reconciliation to do all the other hard stuff,” Sen. John Thune (R-S.D.) said Tuesday.

BIG NUMBER

$3 trillion. That’s how much Biden’s two recovery proposals could ultimately cost, according to multiple reports. The spending is likely to be split up over roughly 10 years.