Senate Minority Chairman Mitch McConnell, R-Ky., Conducts an interview in the Russell Building on Wednesday, March 17, 2021.
Tom Williams | CQ Appeal, Inc. | Getty Images
Senate Minority Chairman Mitch McConnell, R-Ky., Early on Wednesday reviewed President Joe Biden’s infrastructure overhaul, deciphered the “massive” tax hikes in the $ 2 trillion plan, and worried about the impact on national debt .
McConnell, who has resisted attempts by previous governments to channel new infrastructure spending through the Senate, said he was unlikely to support Biden’s ambitious new proposal.
“It’s like a Trojan horse,” McConnell told reporters in Erlanger, Kentucky on Wednesday morning. “It’s called infrastructure, but inside the Trojan horse there will be more borrowed money and massive tax increases for all productive parts of our economy.”
CNBC policy
Read more about CNBC’s political coverage:
The Republican leader said if the plan “adds massive tax hikes and trillions more to the national debt, it is unlikely” he would support him.
McConnell also said that Biden called him Tuesday to let him know of the plan. It is the second time since Biden’s inauguration that the two men have spoken to each other, according to NBC News.
Biden unveiled the plan on Wednesday afternoon in Pittsburgh, known as “The Steel City” for its once towering status as a leading manufacturing base.
The White House says the legislation is only the first part of a double billion dollar stimulus package. The second part of the plan, which will involve huge investments in US health care and childcare, is expected to be announced in April.
The infrastructure plan plans to spend about $ 2 trillion over eight years, the White House said. The legislation would raise the corporate tax rate from 21% to 28%, which, along with other proposed reforms, would fund the new spending over a 15-year period, according to the White House.
Biden’s plan would also raise the global minimum tax rate for multinational corporations to 21% and remove a current tax exemption for profits from foreign investments, the administration said.
“This is not meant to appeal to those who did it. Not to seek retaliation. This is about opening up opportunities for everyone else,” said Biden in Pittsburgh. “And here is the truth: we will all do better if we all do it well.”
These tax proposals would fund a number of wide-ranging infrastructure projects. The Biden Plan would invest $ 620 billion in transportation efforts, including repairing thousands of bridges, expanding public transportation, prioritizing electric vehicles, and taking measures to address the effects of climate change.
Billions more would be used to provide universal broadband access, replace all lines and utility lines in the nation, and lay transmission lines thousands of kilometers in length.
More about the infrastructure
President Joe Biden proposed a $ 2 trillion infrastructure package that would cover everything from roads and bridges to green energy. Check out our coverage here:
The plan also provides $ 400 billion to serve the elderly and disabled Americans and is investing huge sums in modernizing drinking water infrastructure, homes and schools.
Legislators on both parties have long pushed for the revitalization of America’s aging infrastructure – but the tax hikes and massive price tag of the Biden plan are likely to generate stiff opposition from the GOP.
McConnell in Kentucky on Wednesday voiced his concern about US debt, saying, “We have reached a critical point here.”
“I hope we won’t get used to the habit whenever we want to do what is called a national emergency and drive up the national debt,” said McConnell. “Not to mention plans that may be in the making in the future, including one that the president appears to be announcing today in Pittsburgh.”
In a statement following Biden’s speech, McConnell accused the Democrats of “trying to use important issues as a smoke screen for unrelated agendas”.
Democrats are already welcoming the infrastructure package. Senate Majority Leader Chuck Schumer, DN.Y., said in a statement Wednesday that the plan addresses “the right combination” of issues “to meet the challenges America now faces.”
House spokeswoman Nancy Pelosi, D-Calif., Reportedly told the Democratic caucus that she plans to deliver the package in her chamber by July 4th.
