Biden Announces New Infrastructure Plan

President Biden released his proposed $2.25 Trillion infrastructure plan to the public Wednesday afternoon.

Within the proposal, the Biden administration states their intentions to focus on rebuilding a decaying U.S. infrastructure while at the same time funding the expansion of the transportation, manufacturing and renewable energy sectors. (Oh, and don’t forget giving funding to combat climate change!)

The administration is currently suggesting a corporate tax hike to fund this lengthy proposal… A move that could send many U.S. companies running for the border once again.

… But what, if approved, are the pros and cons of the Biden infrastructure plan and what could it mean for future investors?

The American Jobs Plan

President Biden touted his new infrastructure agenda (being called The American Jobs Plan) Wednesday afternoon, promoting the rebuilding of the overall U.S. infrastructure.

Within proposal, there are calls to rebuild American roadways and airports as well as give funding to the further development of public transportation and electric vehicles. Also on the agenda is U.S. manufacturing, schools, housing, broadband internet, hospitals and much more. Needless to say, the to-do list is an admiral step for the current President, but it’s how to raise the money to pay for such a universally approved move where thing get a bit tricky.

You see, Biden’s proposed philosophy on how to pay for this $2.25 Trillion rebuild is by rolling back some of the Trump tax cuts and increasing the nation’s corporate tax rate from 21% to 28%. In addition, Biden proposes raising the global minimum tax on U.S. corporations to 21% from 13%.  

The Trump administration made it a top priority to work to get manufacturers back on American soil after years of mass exodus to foreign, more tax friendly lands. The goal was to make the United States a tax friendly nation for companies to call home and, therefore, bring jobs back to the nation and its citizens. This move by the previous administration was effective and saw the return and expansion of such companies as Apple, Boeing, Ford, General Motors, Intel, GE and many more in the United States.

But with the newly released (and ironically titled) American Jobs Plan, could we start to see these companies leave once again, taking their many jobs with them?

What We Can Expect

Obviously, a focus on the national infrastructure to the investment minded would mean great opportunities for those who pick and choose the right sectors to make their moves in, but where one door opens, another closes and any profitable opportunities that may arise out of the current Biden agenda could be at the expense of another, including corporate America and the opportunities growth in this sector could provide.

This would, unfortunately, include the crude industry too as Biden has also called for eliminating tax breaks and special preferences for fossil fuel companies to help give his team more funding to play with.

Now, I’m not sure there’s a politician out there who would be dumb enough to take a stance against the rebuilding of the national infrastructure. While there are a few areas within this agenda that may be seen as more of a priority to some than to others (including the $174 Billion allotted by Biden to invest in the further development of electric vehicles) the overall objective of rebuilding America is one everyone can get behind.

But how does the Biden team plan to pay for the ever-growing list of lofty promises they continue to make to the American people? Anyone can get on a soap box and make proclamations and demands…

Free college? Yes, please!

Free Healthcare? Oh, heck ya!

A free house and a new car? (Absolu… Oh wait, that’s Oprah not Biden…)

The point is anyone can make empty promises to entice supporters. After all, who wouldn’t love everything to be free? Why support yourself when you can get someone else to do it for you? Simply put, why work when you can take a handout? (Maybe that should be the Democratic Parties new motto? “Why work when you can take a handout?! Harris-Biden 2024.”)

Despite the many promises being made, eventually, someone has to come up with a solution to pay for them and that’s when the government falls back on the income of the American people.

Even if the A.J.P. agenda is passed as is and is funded by taxing the companies we work for and not us directly, in the end, it will be the citizen that loses their income when our jobs leave the country for more tax friendly nations.

Whether it be raising taxes on the individual or the companies we work for, make no mistake, either directly or indirectly, it will be the American taxpayer that pays for the Biden American Jobs Plan.

There’s definitely a lot for us to keep our eyes on in the days ahead as Washington officials debate the American Jobs Plan and the markets react to the confusion. In the meantime, we invite you to join DTI founder and head trader Tom Busby NOW as he dives into today’s markets and how he thinks we should move forward for the time being.

P.S. – If you’re interested in learning a new potential income formula that’s designed to work in ANY market conditions, we invite you to join DTI founder and head trader Tom Busby and market pro Jack Carter during their latest sit down as they dive into the details RIGHT NOW!