reply US infrastructure "start again" stalled and not enough money, tax hike?

U.S. President Joe Biden on Monday unveiled a $2.25 trillion plan to overhaul roads and Bridges, boost broadband and boost research and development over the next eight years. The Biden administration's "re-launch" may seem to have ignited the market's excitement, but American politics means the plan's prospects are fraught with obstacles.The long-term investment plan includes more than $620 billion in transportation spending on roads, rail and other surface transportation to modernize 32,000 kilometers of roads and repair hundreds of Bridges. The White House plans to invest $174 billion in the electric vehicle industry, offer tax incentives for consumers to buy electric vehicles, and create a national network of 500,000 charging stations for electric vehicles by 2030.In addition to infrastructure, the New Economic Plan proposes to invest $300 billion in manufacturing, including disaster response capacity and domestic semiconductor production. Of this, about $111 billion will be invested in water infrastructure to replace all lead-containing water pipes in the country. Another $100 billion will be spent on expanding broadband access, mostly in rural areas. The White House also wants to spend $100 billion to upgrade and build new public schools, and $12 billion to upgrade community college infrastructure.Biden said the plan, also known as the American Jobs Initiative, represents a fundamental shift in the administration's economic thinking and away from the smaller government and tax cuts pursued decades ago by Republican President Ronald Reagan. Biden said the infrastructure plan would be a "once-in-a-generation investment" as the United States rebuilt its economy from the bottom up and helped lift the middle class out of the misery caused by COVID-11.Admittedly, there is a degree of bipartisan consensus in the Biden administration's plan, with both Democrats and Republicans wanting to invest more in U.S. infrastructure to boost the economy and jobs by improving domestic transportation and communications networks. Infrastructure projects can create millions of jobs, contribute greatly to the reduction of unemployment rate after the epidemic, and have an obvious positive pull effect on the US economy. Infrastructure investment can also increase social financing needs, strengthen the currency derivation effect and push up inflation. And getting inflation above 2% as soon as possible is the Fed's dream.But when it comes to who will pay, things get complicated.With America's budget deficit staggering, Republicans would never agree to pay for it by issuing debt. So the Biden administration proposed raising the corporate tax rate from 21 per cent to 28 per cent over 15 years, and raising the tax rate on companies' overseas profits to pay for it. Although the latest proposal mentions only corporate taxes and does not address capital gains or personal income tax reform, Mr Biden's statement that "no federal taxes will be imposed on people making less than $400,000 a year" suggests that an increase in personal income taxes is on the way.Because the tax changes would repeal nearly all major legislation passed when Republicans controlled Congress, Republicans are strongly opposed to significant tax increases, arguing that beneficiaries of the programs should bear the cost, rather than sharing the rich and poor through higher taxes, and Senate Republican Leader Mitch McConnell has signaled he won't support them.Analysts say the plan is unlikely to pass before Congress leaves for its summer recess, and that the Biden administration's plan would need to use the budget reconciliation mechanism to pass it. Mr Biden's administration will have to wait until October, the start of the next fiscal year, to get the once-a-year mechanism through Congress because it has already used it in its previous $1.9tn bail-out package. Still, the budget settlement has limits on what items can be included. In the process, the two parties could be locked in a tug of war, and the grand plan could end up being revised beyond recognition. After all, this is how many infrastructure projects in US history have failed to materialise.