Inside Biden’s $185T social and climate infrastructure bill
By Canadian Manufacturing
President Joe Biden’s $1.85 trillion plan to boost social and education programs as well as protect against global warming has passed the House, pushing it one step closer to law.
The 2,135-page bill includes universal preschool, funding to limit child care costs, expanded health care programs and a one-year continuation of a child tax credit, among many other provisions. But Democrats are scaling back some investments and shortening the timeframe for some programs to whittle down the cost. Some proposals have been dropped entirely.
The bill will still have to clear the Senate, where revisions are nearly certain. But Democrats are aiming to get it to Biden’s desk by Christmas. Republicans are lock-step against the measure, leaving Democrats to pass it on their own.
Here’s what’s in the package, based on summaries provided by the White House and the House.
- Clean energy tax credits would receive $320 billion worth of funding. These credits over 10 years would help businesses and homeowners shift to renewable energy sources for electricity, vehicles and manufacturing.
- $105 billion would be spent to improve communities’ ability to withstand extreme weather events, which have been worsened by climate change. The funding would also create a Civilian Climate Corps that focuses on conserving public lands and bolstering community resilience to flooding, drought and other weather emergencies.
- $110 billion would help develop new domestic supply chains and develop new solar and battery technologies. Support would also be given to existing steel, cement and aluminum industries.
- $9 billion would be allocated for lead remediation projects, such as the replacement of water lines or the replacement of school drinking water fountains that may contain lead.
- Biden’s plan bolsters the IRS to improve collections and close the gap between taxes owed and taxes paid.
- A 15% minimum income tax would be applied to large corporations. The U.S. would also be aligned with an agreement reached by more than 100 countries designed to deter multinational companies from stashing profits in low-tax countries.
- The bill would create a new surtax on multimillionaires and billionaires and close a provision that allows some wealthy taxpayers to avoid paying the 3.8% Medicare tax on their earnings.
- A $10,000 cap on state and local tax deductions would be raised to $80,000. Tax analysts say the change would largely benefit high-income households.
- A 1% surcharge would be imposed on corporate stock buybacks, which Democrats said are often used by corporate executives to boost their finances rather than investing in the business and its workers.
- Those who entered the United States prior to Jan. 2, 2011, and have continuously resided there since would be eligible for renewable parole grants for five years after paying an administrative fee and completing security and background checks. The parole status gives recipients authorization to travel and work in the U.S. and deems them eligible for a Real ID-compliant driver’s license or a state identification card.