Tax increases to be paying for Biden’s $2.25 trillion infrastructure plan – White House

The White House releases a statement ahead of Biden’s speech later today

Biden
  • $620 billion to be dedicated to transportation
  • $650 billion to be used for initiatives to improve quality of life at home
  • $580 billion to strengthen US manufacturing, research and development
  • $400 billion to address improved care for the elderly, people with disabilities
  • Tax increases to “fully pay for the investments in this plan over the next 15 years”
  • Proposes US corporate tax rate to go up to 28% from 21%

As a reminder, Republicans slashed the corporate tax rate from 35% to 21% back in 2017 so even the “hike” here isn’t as heavy; it is likely to be watered down surely.

But still, it won’t be music to the ears of big corporates and as the debate ensues in Congress, expect the whispers and musings to have an impact on market sentiment.