Critics will talk about the cost of infrastructure. Biden should stress its value.

[Nevilledog]

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Jennifer 'pro-voting' Rubin
@JRubinBlogger
Our politics to treat the cost of the proposed plan (reportedly $2 trillion) as if that money were somehow lost. We are not burning $2 trillion; we are using it to generate far more benefits, both tangible (jobs) and intangible (shorter commutes)

Opinion | Critics will talk about the cost of infrastructure. Biden should stress its value.
Ambition and scope are his assets.
washingtonpost.com
9:10 AM · Mar 31, 2021

https://www.washingtonpost.com/opinions/2021/03/31/critics-will-talk-about-cost-infrastructure-biden-should-stress-its-value/

President Biden is hearing from the usual critics on his ambitious infrastructure plan. Business Roundtable likes the idea of getting all those roads and bridges, but does not want to raise corporate taxes to pay for it. In a statement released Tuesday, the megacorporations’ organization concedes:

Repairing and modernizing these systems, including U.S. highways, water systems and broadband, would create a stronger and more equitable economic foundation for all Americans, generate long-term growth for our country and yield vital environmental benefits. Business Roundtable estimates that an investment of approximately $1 trillion to $1.5 trillion is necessary to return U.S. physical infrastructure to a state of good repair, expand capacity to meet expected demand, and invest in new green infrastructure.

Still, the group said, it “strongly opposes corporate tax increases as a pay-for for infrastructure investment.” Considering how adept its giant corporate members are at legally avoiding taxes, it is a wonder they care what the plan’s proposed tax rate is. Moreover, considering the benefit they will derive from the infrastructure, it is churlish to demand someone else pay for it. That long-term growth means more profits for them. They benefit from a public good; they should be willing to chip in to pay for it.

Corporate tax revenue makes up a small portion — about 7 percent — of federal revenue. If companies contributed, say, 9 percent but got new ports, roads, high-speed transit, better Internet service and protection from power-grid interruption, wouldn’t their shareholders over time still come out ahead? (One can see why short-termism in business creates perverse incentives.)

Expect more harping on costs of this plan. Whether it is corporations whining about having to theoretically pay more in taxes or supply-siders screeching that an increase in the corporate tax rate to 28 percent — still less than the 35 percent rate in place less than five years ago (as well as during the boom years of the 1990s) — will destroy economic growth, Biden will face a drumbeat of criticism about how to pay for it.

*snip*

[Vinca]

1. I wonder what the cost of the Interstate Highway System would be in today's dollars.

It seems that was the last time this country did something really big re infrastructure so Biden's plan is long overdue.

[usajumpedtheshark]

2. Not to mention the cost of dealing with the collapse of

Infrastructure due to deferred maintenance

[global1]

3. Corporations Have No Problem When It Comes To Spending Money Sponsoring Stadium's & Arena's.....

Perhaps there is some way that they can get credit some way for contributing more tax monies for the infrastructure of this country. (This bridge or road brought to you by the fine corporation X). Airlines would benefit immensely by the upgrading of airports around the country.

Isn't there some way of bringing in the corporations into the infrastructure rebuild?

We'd be giving a lot of people jobs. They'd have money to spend and the economy would boom. The Corps would benefit from this.

I'm amazed when I travel to other countries (Europe, ME & Asia) of the world and am exposed to their infrastructure (i.e., roads, bridges, airports, transport systems, etc).

People here have this perception that we are so far advanced and modern yet we here in the U.S. seem so far behind the curve with respect to infrastructure.

I really believe that there is a way of bringing everyone along on this quest to upgrade our infrastructure. The American People, the Dems and the Repugs, the Corps.

[Claire Oh Nette]

4. Corporations have cut their share by half over the past 40 years

Used to be corporation paid ~2/3 of federal income taxes, and taxpayers paid about a 1/3. Reversed today.

Wall Street micro-tax on every trade.
Make 120% or more than the president of US? welcome to a higher tax bracket of 44%. Make over $1,000,000? 48% for you on that higher margin. More than $10,000,000? 70%. Or, we could use Eisenhower era Republican rates, adjusted for inflation, of course, if they really want to live in the 1950s...