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Infrastructure (Economics)

Manchin Signals Support for Party-Line Infrastructure Bill

Strategic Insights

— 1 min read

Sen. Joe Manchin of West Virginia on Tuesday announced his willingness to back a party-line infrastructure bill, a crucial move that could allow Democrats to pivot to approving much of President Joe Biden's spending plans without GOP support. This development comes amidst ongoing bipartisan negotiations on a $1 trillion package focused on physical infrastructure. However, the path forward remains uncertain, with centrist Republican and Democratic negotiators struggling to finalize the plan's pay-for.

Key Takeaways:

  • Sen. Joe Manchin expressed support for a party-line infrastructure bill, indicating a potential shift in strategy for Democrats to approve President Biden's spending plans without GOP support.
  • Manchin believes "adjustments" need to be made to the 2017 Republican tax law, which includes lowering the corporate tax rate from 21% to 25%.
  • Bipartisan negotiations on a $1 trillion physical infrastructure package are facing challenges in determining the plan's pay-for, with the White House ruling out a gas tax increase and a new electric vehicle charge.
  • Democrats are considering strengthening the IRS to increase revenue from tax enforcement, but Republicans remain skeptical of the potential revenue.
  • Manchin and other Democrats are discussing the possibility of pursuing a larger package after the infrastructure bill, including programs for clean energy, childcare, and other social provisions.

Statistics:

  • The proposed $1 trillion physical infrastructure package aims to address various physical infrastructure needs, including roads, bridges, and public transportation.
  • The 2017 Republican tax law lowered the corporate tax rate from 35% to 21%, which Manchin believes was unfair and detrimental to the average American.
  • The White House has ruled out increasing the gas tax to fund the infrastructure package, as well as implementing a new charge on electric vehicle drivers.
  • Democrats are exploring the idea of strengthening the IRS to generate revenue through more effective tax enforcement.

Sources:

  • (https://www.businessinsider.com/manchin-infrastructure-bill-congress-trump-tax-cuts-2021-6)
  • (https://www.businessinsider.com/senate-republicans-irs-to-cover-democratic-spending-plans-2021-6)
  • (https://www.nbcnews.com/politics/congress/manchin-says-he-might-back-party-line-infrastructure-bill-n1266854)

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