AUS
NZ
UK
CA
USA
IND
Summary
- President Biden is pursuing bipartisan support for the bill, which seeks to revamp the country's infrastructure, including roads, bridges, airports, and other facilities.
- Republican senators were confident that the new offer would be agreeable to all members.
- One of the sticking points is Democrats' plan to alter former President Donald Trump's tax law.
US Republican Senators are planning to propose US$1 trillion in a counteroffer to President Joe Biden's US$1.7 trillion infrastructure spending plan. The GOP had earlier proposed spending of US$568 billion over a five-year period, which fell way short of the sum planned by President Biden.
Republicans were expected to present their new proposal to President Biden by Thursday, although the negotiations among the GOP Senate members are still on. The GOP may likely offer a US$1 trillion package to President Biden when they meet in the White House.
President Biden is pursuing bipartisan support for the bill, which seeks to revamp the country's infrastructure, including roads, bridges, airports, and other facilities.
Republican senators were confident that the new offer would be agreeable to all the members. Details of the revised package were not immediately known. However, Senator Shelley Moore Capito, heading the Republican negotiating team, told reporters that the Republican proposal is altered to accommodate President Biden's eight-year spending framework.
Source: Pixabay.
Also Read: US Home Prices Surge To 15-Year High Amid Scarce Supply
Sticking Points
Both sides have been wrangling over the size of the bill since it was proposed by President Biden weeks ago. Republicans believe the current bill is way too costly and may result in wasteful expenditures. President Biden's administration, on the other hand, emphasizes that it is needed to rebuild the broken infrastructure to meet the country's future needs. If the negotiations fail, President Biden and his fellow Democrats in the house may have to move forward without the support of the Republicans.
One of the sticking points is Democrats' plan to alter former President Donald Trump's tax law. The Biden administration wants to increase taxes on big corporate houses and wealthy Americans, which the Democrats believe is needed to stem inequality and reallocate the resources for nation-building.
Also Read: Can inflation woes spark a firestorm in global markets?
Democrats, who hold a slim margin in both chambers of Congress, have set July 4 to pass the infrastructure legislation. President Biden wants to chart a new path for the economy by vigorously focusing on green projects and rebuilding the ailing infrastructure to spur growth in the coming years. Fighting climate change also is among his top priorities.
Last week, the Biden administration had trimmed down its original infrastructure package from US$2.25 trillion to US$1.7 trillion, following strong opposition from the Republican members. Besides tax hikes, the bill also calls for increased spending on social welfare programs.
