Spending Details of American Jobs Plan
While the American Jobs Plan has spending plans in a wide variety of different areas, the bottom line would be an increased demand for work. A major portion of the bill focuses on a whopping $621 billion that would be spent to improve the current transportation infrastructure. The money would be proportionally spent on improving and building bridges and roads, bolstering public transportation and large centers of travel, and major investments in EV development.
The immediate impact of this portion would be felt in construction and manufacturing contracts, potentially putting thousands of people to work across the US. This would also be the case for the proposed $300 billion that would be going into retrofitting and building affordable housing along with revitalizing public schools.
$100 billion of investment will go toward rural broadband expansion and accessibility. Another $100 billion will be invested in national improvements to the electrical grid. Each should prove to be major sources of job demand given the work that would need to be done.
The largest targeted effort toward putting people to work in the US comes from the proposed $580 billion that will be dedicated to revitalizing the manufacturing industry, investing in clean energy, creating an investing hub for small businesses, and providing improved job training efforts.
This portion of the American Jobs Plan would be a major catalyst for not only job creation in economically suffering portions of the US, but it would also provide a way to expand small businesses and help Americans receive training for more in-demand jobs. If the plan is successful, it could potentially create hundreds of thousands of jobs and inject billions of dollars into the small business sector of the US economy.
Other Impacts of the Infrastructure Bill
The proposed infrastructure bill could be a major lift for the still notably high unemployment numbers and serve as a boost to small businesses. However, the over $2 trillion of spending by the US government could be a heavy cost. President Biden has pledged that those making less than $400,000 a year will not be footing the cost through increased taxes. However, the spending will affect large companies as it will fall on them to pay for all these expenses.
Part of the American Jobs Plan funding will come from an increase in the corporate tax rate from 21% to 28%. This increase will still be significantly lower than the 35% corporate tax rate seen under President Obama; it would also be markedly higher than that seen under President Trump.
The American Jobs Plan is an ambitious infrastructure bill that could help put thousands of Americans to work, make a major push toward clean energy, and support small businesses. However, the funding of the bill may not garner significant support from a split Senate given the raise in corporate taxes on large American companies.
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.