U.S. Chamber: Biden’s Infrastructure Plan ‘Dangerously Misguided’ on Taxes

“We need a big and bold program to modernize our nation’s crumbling infrastructure and we applaud the Biden administration for making infrastructure a top priority,” said Neil Bradley, executive vp-chief policy officer, U.S. Chamber of Commerce. “However, we believe the proposal is dangerously misguided when it comes to how to pay for infrastructure.

“Properly done, a major investment in infrastructure today is an investment in the future, and like a new home, should be paid for over time – say 30 years — by the users who benefit from the investment. We strongly oppose the general tax increases proposed by the administration which will slow the economic recovery and make the U.S. less competitive globally – the exact opposite of the goals of the infrastructure plan.

“The hard work of achieving bipartisan consensus is the best and only realistic path to enactment of historic infrastructure legislation. While today’s action, coupled with continued efforts to find consensus from bipartisan groups in both the House and Senate is encouraging and a start in a long process, we urge both Democrats and Republicans to avoid further partisan gridlock and provide productive solutions to get an infrastructure bill passed this year.”

Comment:  Like the U.S. Chamber of Commerce, we’ve long advocated for an aggressive infrastructure plan.  For the last 20 years, Republican and Democrat administrations alike have neglected to maintain, much less upgrade, our roads, bridges, etc.  Biden’s plan deserves support, but his way of paying for it does not.  The best way to pay for infrastructure upgrades is through specific user fees, such as a gas tax and a new tax on electricity powering electric vehicles.  Biden’s tax plan will result in corporations once again looking to foreign shores for their corporate home.

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