Speaking Out: It's time for Congress to come together on infrastructure
There is little dispute across our nation that we have infrastructure needs that must be met. What should be included when we talk of infrastructure? The very definition in the Cambridge Dictionary is "The basic systems and services that are needed to support an economy." There are examples of physical infrastructure, such as roads, bridges and transportation and utilities systems. There are examples of social infrastructure: schools, hospitals and housing. The Biden Administration has proposed improvements in both physical and social infrastructures in its expansive American Jobs Plan, which proposes investments of over $2 trillion in many areas of our economy.
The Biden plan includes around $621 billion for transportation, including roads, bridges, ports, mass transit and electric vehicle charging stations. Improved drinking water systems, power grids and broadband internet access is included for $111 billion. There is $300 billion targeted for manufacturers and small businesses, including access to financing and clean energy investment and critical goods like semiconductor manufacturing. Funding for home- and community-based care for the elderly and disabled is included for $400 billion; $213 billion is slated for creating and improving and more than 2 million units of public housing. Workforce training is included in the plan for $100 billion, and upgrading public schools for another $100 billion. Those are the largest proposals in the plan, and all investments will create countless jobs.
There are those on the other side of the aisle who would prefer to see a more restrictive approach, focusing on a more limited physical infrastructure. They initially suggested an investment of about a quarter of the Biden proposal. The president has met with leaders from both sides of the aisle in hopes of trying to garner support for a bipartisan approach. It is quite obvious that getting something as comprehensive as the president has proposed is not going to happen on a bipartisan basis - even if there is significant movement.
The President has noted that politics is the art of the possible, and also stressed that doing nothing on the Jobs Plan Infrastructure proposal is neither an option nor acceptable. He appears to be receptive to trying to get implementation by dividing his plans into two parts: one part to get as much as he can on a bipartisan approach if he can get significant movement, and pushing for the remainder through reconciliation.
Such an approach will serve the country well if he can get the Republicans to include a package that covers close to half his proposal, and if he can keep all segments of the Democratic side united to pass the remainder through reconciliation. The Republicans need to accept a more expansive approach than they are used to. They need to realize that things like expanded broadband are critical, and all parts of the country should have access to the internet. Likewise, getting rid of lead pipes and having a safe water system is essential to ensuring healthy communities for all, even though such projects have not been part of infrastructure projects in the past. There needs to be realization that having a viable, thriving electric vehicle capacity is key not only to the environment, but also to remaining competitive in the world economy where China is producing millions of electric vehicles already.
Similarly, we need the R and D and manufacturing support for things such as semiconductor chips, which are essential for so much of what we need in todays economy.
It is a good sign that Mitch McConnell previously has said that Republicans could accept a package as high as $800 billion, and The Associated Press just indicated a Republican source said GOP legislators may come back with a counterproposal near $1 trillion in response to the reduced $1.7 trillion plan that President Biden put on the table earlier this week. Biden's package reduced some R & D and some broadband amounts. It is not yet clear what the Republican counter will include.
When it comes time to pass the social components of infrastructure that are not likely to get into any bipartisan bill, or any aspects of our infrastructure needs that can't get approved in a bipartisan bill, the Democrats must stand together to ensure all of these needs are met. It is also key that some Democrats who may want to push for more not stand in the way of a significant bipartisan proposal, if one is possible, as a first step to get important infrastructure onto the President's desk and jobs in the pipeline around the country. The American people want to see results. Let's not let them down.
There remains a stumbling block, regardless on how the proposals are funded. The president has proposed that the best approach is to have the Trump Corporate tax reduction of 35% to 21% partially reversed - getting back up to 28% - and changing the tax code for corporations that shift profits and jobs overseas to ensure they will be required to pay a minimum tax and not continue dodging them. The Republicans want to keep the corporate tax reduction and want to see an alternate approach to financing, including user fees such as the gas tax. Even on the Democratic side, Sen. Joe Manchin and others think the corporate tax increase could be lower - closer to 25%.
The president does not like the idea of the gas tax since it will be, in effect, a tax increase.
Others have suggested that significant dollars could be generated by strengthening our program on uncollected taxes. It has been reported that the anticipated possible $1 trillion counterproposal Republicans is tied to using about $700 billion of COVID relief that has not been spent. The devil is in the details, which we don't know. It must be determined whether using that unspent relief money could adversely affect segments of the population who need it.
The payment approach is where there needs to be compromise by all, including the President. There needs to be a mix of these various approaches. New concepts like a vehicles miles travel tax needs to be in the mix in terms of user fees, especially as we see a promoted shift to electric vehicles. The change to stop tax avoidance by those multinationals who are shifting profits and jobs offshore should be in place for fundamental tax fairness, as should going after tax collection from those who rightfully owe taxes. Treasury Secretary Janet Yellen, while arguing for the Jobs Plan before the Chamber of Commerce, noted that the US has not maintained its infrastructure nor modernized it and that the proposed investments along with tax changes as a package would enhance profitability and competitiveness of American corporations and create jobs.
The fact that earmarks are back on the table should also help to get infrastructure bills passed, since legislators will be able to demonstrate tangible benefits to their constituents. Of course they need to be meaningful projects, but such give-and-take in the political process need not be a bad thing as long as impactful legislation can be facilitated through the process. The bottom line is there needs to be give-and-take on all aspects of needed infrastructure legislation, keeping in mind that all these needs are important. Compromise and give-and-take is needed on what should be included in the bills, and likewise open-mindedness and flexibility is needed on what approaches are used to pay for the projects.
Like the president said, doing nothing cannot be an option.
• Elliott Hartstein of Northbrook is an attorney and former village president of Buffalo Grove.