President Biden's Infrastructure Plan and You.
Biden’s Infrastructure Plan Unveiled
President Biden announced an infrastructure plan last week costing $2 trillion over eight years and paid for over 15 years by raising the corporate tax rate to 28% from 21% and increasing taxes on companies’ foreign earnings. The tax changes would revamp or replace much of the international tax structure that Congress enacted four years ago.
Details of the plan are here. Highlights of the plan include:
• $621 billion to modernize transportation infrastructure (roads, bridges, ports, airports, public transit, electric vehicle development),
• $400 billion to help care for the aging and those with disabilities,
• $580 billion to boost the manufacturing industry, R&D and job training,
• $300 billion on retrofitting and building affordable housing and upgrading schools, and
• $300 billion to expand broadband access, upgrade electric grids, improve drinking water infrastructure.
While passage of a federal infrastructure plan has long been a priority for many business groups, there is strong opposition to paying for the plan with tax increases that create barriers to job creation and economic growth. Obviously many Democratic leaders are on board with the plan, but many Republican leaders are not.
Biden Signs PPP Extension
Last Tuesday, President Biden signed an extension to the PPP program, moving the application deadline for both first- and second-draw loans from March 31st to May 31st. The law also extends authorization of loans to June 30 to give the Small Business Administration (SBA) more time to process applications.
Nationally, as of March 28, 2021, the program has approved more than 8.7 million loans for more than $734 billion since it was created last year, according to SBA data. 78.4% are for $50,000 and under, and the average loan is $59,000 (2021 data only).