Signs of Division Again Over US Infrastructure Bill... McConnell Opposes Tax Hikes

Mitch McConnell, U.S. Senate Republican Leader
Photo by AP News

[Asia Economy Reporter Park Byung-hee] The U.S. Congress is showing signs of division again over the infrastructure bill promoted by U.S. President Joe Biden.

According to Bloomberg News on the 16th (local time), Mitch McConnell, the Republican Senate Majority Leader, said he would not support the infrastructure bill through tax increases. Leader McConnell stated, "I do not think the Republican Party will show any enthusiasm for tax increases."

President Biden signed a $1.9 trillion stimulus bill on the 12th of last month. Prior to that, a $900 billion stimulus bill had been implemented in December last year, and the Republicans strongly opposed additional stimulus bills. Ultimately, the $1.9 trillion stimulus bill passed both the Senate and the House with all Republican members opposing it. The Congress showed extreme division over the $1.9 trillion stimulus bill.

As part of the economic stimulus, President Biden is again pushing for an infrastructure expansion bill. Given the heavy burden of consecutive large-scale fiscal policies, this time he is also promoting tax increases.

President Biden aims to increase tax revenue by raising the corporate tax rate, which fell from 35% to 21% during President Trump's administration, back up to 28%, increasing the top income tax rate for high earners with annual incomes over $400,000, and imposing additional taxes on capital gains over $1 million annually.

However, Leader McConnell has opposed tax increases from the start, effectively indicating that he will not agree to the infrastructure expansion bill. He added that, as with the $1.9 trillion stimulus bill, the Democrats will have to use the budget reconciliation process. McConnell pointed out that the infrastructure bill, which requires additional large-scale fiscal spending after already significant expenditures, would be a Trojan horse.

In the House, the bill can pass with a simple majority vote, and since the Democrats hold the majority, there is no major issue. However, in the Senate, 60 out of 100 members must agree for the bill to pass. The Republicans hold 50 seats in the Senate, so at least 10 Republican senators must agree for the bill to pass. However, as Leader McConnell noted, if the budget reconciliation process is used, the bill can pass with a simple majority vote. The Democrats used the budget reconciliation process to pass the $1.9 trillion stimulus bill in the Senate.

If the Democrats have to use the budget reconciliation process again, it will inevitably be a burden for President Biden. Although he emphasized unity in his inaugural speech, the process of preparing the infrastructure bill following the stimulus bill is showing only extreme division.

White House Press Secretary Jen Psaki said, "President Biden hopes the infrastructure bill will pass through bipartisan agreement," and added, "President Biden said that bipartisan agreement is fully possible through dialogue."

If the Republicans oppose, uniting the Democrats will also be a key issue. Senator Joe Manchin, a Democrat, previously stated that he would reject the infrastructure bill if the Republicans do not support it.

This content was produced with the assistance of AI translation services.