FOR IMMEDIATE RELEASE
June 4, 2021
Maddy McDaniel, Communications Director
[email protected] or 914-471-7716
LATEST CAPITO SALVO DOUBLES DOWN ON PROTECTING CORPORATE TAX BREAKS, DEEP JOB KILLING CUTS
Latest Capito Counter-offer Doubles Down on Cuts to Job Creating Investments in Clean Energy, Caregiving, School Construction and US Manufacturing While Shifting the Costs From Corporations To the Middle-Class
Plan Raids Covid Relief Funding Meant to Keep Essential Workers Like Firefighters and Police on the Job To Save Tax Breaks For Corporations That Ship American Jobs Overseas
U.S. Conference of Mayors, National League of Cities, and National Association of Counties and a Coalition of State Treasurers Have All Opposed Republicans’ Plan to Fund Infrastructure by Raising Funds for States, Localities, and Essential Workers
NEW POLLING: Majority of Republican (52%) and Independents (64%) Want To Fund Infrastructure Investments Through Corporate Taxes, Not User-Fees And Raiding Pandemic Relief Funds
WASHINGTON, D.C. — Today, Senate Republicans had another chance to finally meet the president at the negotiating table in good faith and propose a reasonable deal that meets the urgency of the moment. Spoiler alert: they didn’t.
Senior advisor for Invest in America Action Zac Petkanas made the following statement in response to the latest GOP offer:
“While President Biden has eagerly sought a bipartisan compromise, Senator Capito’s latest counter-offer doubles down on the Republicans’ unreasonable demands that will hurt working families by protecting tax breaks for corporations that ship American jobs overseas, gutting job creating investments and raiding Covid relief funds meant to keep essential workers like firefighters and police on the job.
“Enough is enough. It is not engaging in a good faith negotiation to peddle virtually the same defunct proposal over and over again that shifts the costs onto working families, preserves corporate taxpayer giveaways, and leaves millions of good paying jobs on the table. It should be seen for what it is: Republicans walking away and leaving the White House no choice but to pass this job creation package through the reconciliation process.”
The Republicans’ plan would shortchange economic recovery in the states by raiding the American Rescue Plan funding that was meant to keep essential workers on the job.
- Underfunding the economic recovery in the states would put a drag on the country’s economy. In 2009, Republicans cut billions of dollars of state and local aid from the American Recovery and Reinvestment Act, and the results were devastating:
- States were forced to make disastrous cuts to education. Ten years after the great recession, state financial spending for higher education was still down 13%. In 2016, funding for K-12 education was lower in 29 states than it had been in 2008 — down at least 10% in nine of those states.
- In the wake of the recession, state aid to localities was down by 5.3% — putting a strain on local budgets and exposing cities to greater risk of financial problems.
- Overall, it took nearly a decade for state and local governments to return to pre-crisis employment levels.
- Repurposing Covid relief funding would result in a massive loss of revenue for large and small communities alike, at precisely the moment they need to be doing everything to get our economy going again
- Funding from the Plan is enabling large cities, small towns and rural communities alike to get back on their feet despite significantly lower tax revenues.
- These funds are keeping police, teachers, and firefighters on the job, addressing cyber security and technology challenges exposed by the pandemic, and keeping programs and systems in place that Americans across the country rely on.
The GOP’s counter-proposal strips the funding in President Biden’s plan for job-creating investments in schools, caregiving, manufacturing, and clean energy, potentially preventing the creation of at least 1 million jobs and hurting American competitiveness.
- The GOP plan cuts $137 billion in funding to upgrade and build new public schools, community college infrastructure, and child-care facilities.
- Meanwhile, the American Society of Civil Engineers rated school infrastructure in the U.S. with a “D+” rating — and 28 million American students attend schools nationwide that need one or more building extensively repaired, overhauled, or replaced.
- Research has shown “there is strong evidence that high-quality infrastructure facilitates better instruction, improves student outcomes, and reduces dropout rates.” Our school buildings’ structural faults “are significantly related to worse student achievement.” As such, proposals to eliminate school infrastructure investment are proposals to stunt our children’s educational growth and development.
- The American Jobs Plan would create between 1 million and 1.2 million jobs per year through investments in clean energy, according to Robert Polling, economics professor and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts-Amherst.
- Experts have applauded the American Jobs Plan’s clean energy investments as “a significant step in meeting our collective clean energy goals.” Eliminating these investments would only worsen climate change and prevent us from achieving the clean environmental future we need.
- By stripping investments in clean energy, the GOP plan would forfeit more than 1 million jobs and inhibit our fight against climate change.
A multi-trillion dollar investment in infrastructure will create jobs and turbocharge the economy.
- S&P Global estimates that $2 trillion investment in public infrastructure over 10 years would create 2.3 million jobs, grow personal income by $2,400, boost household spending by $3.5 trillion, and inject $5.7 trillion to the U.S economy — that’s 10 times what was lost during the Great Recession.
- More than half of the millions of jobs created by infrastructure investments would go to blue collar workers without a college degree.
- The time is right for a big investment — a $2 trillion infrastructure investment now could mean that each dollar spent will have a return of $2.70, according to S&P.
- In 2017, the Georgetown University Center on Education and the Workforce estimated that a $1 trillion investment in infrastructure could create 11 million jobs.
“Infrastructure pays for itself if it’s done wisely. It’s the grease that keeps the economy moving along.”