Joe Biden begins reshaping the US economy with huge fiscal package

President of the United States Joe Biden will call for another fiscal impulse to strengthen the US economy. He plans to use the $2 trillion package for investment in infrastructure projects, for tackling the climate change or improvement of the elder care.

Biden´s plan includes investment of about $620 billion to modernize the infrastructure like roads, bridges, highways or ports. Next $174 billion should be invested in boosting the nationwide charging network for electric vehicles. The network is about to be built by 2030.

The fiscal package also includes $400 billion to expand the access to affordable home or community-based care for aging Americans and people with disabilities. If the package is passed through the Congress, combined with the previous one the entire fiscal impulse reaches almost $4 trillion. That accounts approximately 20 % of the annual output of the US economy which is unprecedented support in modern history of the USA.

Joe Biden seems to be ignoring his campaign promise to raise taxes on wealthy Americans for now. On the other hand, the plan includes an increase of corporate taxes on profits from current 21 % to 28 %.

Renshaw, Reuters

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