President Joe Biden has unveiled a $2.2 trillion masterplan that will see investments in infrastructure and job creation for Americans. The plan is designed to reshape the economy by investing in infrastructure and social support. If the plan is fully implemented, it will be the largest U.S. domestic investment in many years.
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The investment will have far-reaching effects in reshaping energy policy and turning away from greenhouse gases to green energy. The plan seeks to repair roads and bridges, boost public transit projects, replace all lead pipes to improve water systems, expand electric vehicles and invest in other renewable energy infrastructure.
While unveiling the plan, President Biden has tried to remain focused on the economic positives while still introducing the climatic aspects of the project. Besides infrastructure development, the plan will work to to slash greenhouse gases, address racial inequalities and generate well-paying jobs.
The biggest concern over this ambitious climate plan has been the cost of the entire project. Opponents of the green economy have been adamant that if such a plan is implemented, it will come at a painful economic cost. However, President Biden and climate experts argue that global warming would be more costly in the long run. Several studies have indicated that climate change will cost nations more in the future. A 2018 Federal Climate Report disclosed that the U.S. would lose 10% of its GDP to climate change if things continue as usual.
“If we act now, in 50 years people are going to look back and say, this was the moment that America won the future,” President Biden said.
The Biden administration plans to raise the corporate tax rate to 28% in a bid to raise funds for the project. Other funding sources that the government is considering include increasing tax on U.S. multinational corporations and eliminating the no-tax rule for U.S. companies on their first 10% of returns when locating investments in other countries.
Image via Maarten van den Heuvel