Biden's next big push: Massive infrastructure plan, proposed tax hikes to pay for it

President Joe Biden’s roughly $2 trillion “American Jobs Plan” is expected to be rolled out Wednesday afternoon when the president delivers an economic speech from Pittsburgh, making infrastructure the second big ticket legislative push of his young presidency.

However, the president is coupling it with tax hikes on corporations through an “American Tax Plan,” which the White House says will pay the full infrastructure costs over 15 years.

Biden is proposing to raise the corporate tax rate from 21% to 28%, a return to the level before the 2017 GOP rewrite of the tax code. It also increases the global minimum tax for multinational corporations to 21% and calculates it on a country-by-country basis to hit profits in tax havens.

On a call with reporters Tuesday night previewing the rollout, an administration official wouldn’t say if Biden plans to send them as one entire package or separate proposals to Congress. They also wouldn’t say when any of the proposed infrastructure projects would get started. When asked how many jobs this will create, they said, “this plan will create millions and millions of jobs,” avoiding a specific number.

Biden previously said that Americans making over $400,000 would see their taxes increase and tax capital gains as normal income, but that is nowhere to be found in the American Tax Plan. An administration official told ABC News that “the focus of this plan is on corporate tax reform.”

PHOTO: A construction worker builds the Signature Bridge, replacing and improving a busy intersection at I-95 and I-395 on March 17, 2021 in Miami. The infrastructure project will ease traffic congestion and connect communities with downtown neighborhoods

It’s possible that those tax proposals could appear alongside the next half of Biden’s “Build Back Better” spending plans, centering on “creating economic security for the middle class through investments in childcare, health care, education and other areas,” White House press secretary Jen Psaki said Monday.

That part could total more than $1 trillion in spending, according to people familiar with a Tuesday briefing for top senators on congressional committees who will be involved in crafting the package.

The massive infrastructure package is separated into four areas: Transportation, home, care and R&D infrastructure.

Among the proposals is $621 billion in updates to modernize roads, rails, ports, airports, mass transit and highways, $100 billion to eliminate 100% of lead pipes, $100 billion to build out high-speed broadband across the country, $400 billion for community-based care for elderly Americans and a $180 billion investment in clean energy.

It also includes $174 billion to spur job growth in the electric vehicle (EV) market and create a national network of 500,000 EV chargers by 2030.

PHOTO: President Joe Biden speaks to the press before boarding Air Force One at New Castle airport in New Castle, Del., March 28, 2021.

Biden will detail the first part during a speech in industry- and union-centric Pittsburgh, according to the White House. He launched his campaign there in 2019 by promising to rebuild “the backbone of America, the middle class.”

When he was president-elect, Biden laid out what he called “a two-step plan of rescue and recovery” — the first, his COVID relief proposal, a version of which became law this month, and the second, what he called his “Build Back Better” plan.

That plan, the then-president-elect said in January, “will make historic investments in infrastructure and manufacturing, innovation, research and development, and clean energy. Investments in the caregiving economy and in skills and training needed by our workers to compete and win the global economy of the future.”

Biden has prioritized the major spending plan, the first half of his package, as he seizes on any early momentum he still has after pushing a $1.9 trillion COVID-19 relief package through Congress.

But with such a razor-thin Democratic majority in the House of Representatives — he can only afford to lose eight Democratic votes — and an evenly split Senate, it remained to be seen whether the infrastructure package could pass through Congress.

While improving airports and roads typically find bipartisan support, the Biden administration’s plans to fund improvements through tax increases could turn off most, if not all, Republicans, and potentially even some Democrats. The coronavirus relief package was popular among Americans, including Republicans, but it did not garner a single Republican vote in Congress.

PHOTO: Construction workers build the Signature Bridge, replacing and improving a busy intersection at I-95 and I-395 on March 17, 2021 in Miami. The infrastructure project will ease traffic congestion and connect communities with downtown neighborhoods.

As it did with the relief package, also known as the American Rescue Plan, the White House has similarly leaned in to popular support for infrastructure improvements — a sign it is prepared to use, and try to shape, public opinion as a cudgel to bring members of Congress on board.

Another threat came this week from several New York-area House Democrats who want to see Biden lift the cap on the deduction for state-and-local taxes, known as SALT, imposed by a law then-President Donald Trump signed into law in 2017.

Doing so would benefit suburban homeowners, although some progressive Democrats could balk at the notion of a tax change that would benefit relatively wealthier Americans.

Biden’s plan does not reverse the cap on SALT deduction.

Rep. Pramila Jayapal, D-Wash., the chair of the Congressional Progressive Caucus, told reporters on Tuesday that the group would not take a position on lifting the cap, but added, “I’m not sure that our members will see it as some of the fundamental reforms to the tax system that would make the system more fair.”

The White House has indicated that Biden would be willing to negotiate on potential new taxes that are sure to be unpalatable to Republicans and Democrats alike on Capitol Hill.

“The president has a plan to fix our infrastructure and a plan to pay for it,” White House press secretary Jen Psaki said Monday. “But we are also open to having that discussion, and we certainly expect to have the discussion with members of Congress, as we move forward, about areas where they agree, where they disagree, where they would like to see greater emphasis or not.”

Biden has said he wants to attempt to pass a major infrastructure package as his second priority — before legislation on immigration or gun reform, for example — because he thinks the current, divisive political climate may be more tolerant of a spending plan could help the United States “compete and create significant numbers of really good-paying jobs.”

“It’s a matter of timing,” Biden told reporters last week.

But if Republican support does not materialize this time either, Senate Majority Leader Chuck Schumer’s office this week hinted at the possibility Democrats in that chamber could try to push through the president’s proposals through a budgetary process known as “reconciliation” — the same way they passed Biden’s COVID-19 relief bill.

That process would allow for a simple majority — including Vice President Kamala Harris’s tie-breaking vote — to pass Biden’s bills, unlike the 60 votes normally needed.

But that step would require the support of all 50 Senate Democrats — far from guaranteed after centrists have expressed a desire for prioritizing bipartisanship this time around.

PHOTO: Construction continues on the westbound I-70 tunnel from Clayton to Columbine Streets during Denver's Central-70 infrastructure building project on Aug. 5, 2020.

Asked on Tuesday night’s call if the White House hopes to use reconciliation to push this through Capitol Hill, an administration official would only say, “this is the beginning of a process” and would be reaching out to Republicans and Democrats.

Biden could also face competing pressures inside his party on the overall size of the package, with Jayapal and other progressives encouraging the White House to think bigger than the multi-trillion-dollar proposal Biden is expected to unveil.

“The Biden proposal on the campaign trail was significantly larger than what’s been discussed so far,” Jayapal said. “We really think there’s ample room to get the overall number up to somewhere in that range (of $6.5 trillion and $11 trillion over the next 10 years) in order to really tackle the scale of investment that we need to make.”

ABC News’ Allison Pecorin, Molly Nagle and Mary Bruce contributed to this report

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