FOR IMMEDIATE RELEASE
April 22, 2021
Maddy McDaniel, Communications Director
[email protected] or 914-471-7716
Statement: GOP Infrastructure Proposal Will Hurt Working Families, Stifle Job Growth
WASHINGTON, DC — Today, congressional Republicans proposed a $568 billion infrastructure proposal that slashes President Biden’s $2.25 trillion American Jobs Plan. While the Biden proposal would create millions of jobs for middle class families, the Republicans’ proposal guts investments in school construction, caregiving, U.S. manufacturing, and clean energy that will create millions of jobs, and shifts the tax burden from corporations to everyday Americans by replacing the corporate tax rate hike with user fees like tolls.
“While President Biden has been eager to work with Republicans on a job creation package, this so-called counter-offer proves that Republican senators aren’t even pretending to be serious negotiating partners with the White House,” said Invest In America Action senior advisor Zac Petkanas. “Cutting funding from the American Jobs Plan that will create millions of jobs while shifting the tax burden from corporations to the middle-class through user fees like tolls is laughably absurd. It’s clear their only interest is derailing the process to score cheap political points instead of delivering economic growth for the American people.”
GOP proposal strips job-creating investments, which would prevent the creation of at least 1 million jobs and hurt 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.
The GOP plan tries to sabotage infrastructure spending by shifting the tax burden from corporations to the middle class.
- The American Jobs Plan increases the corporate tax rate — undoing some of the damage from the 2017 Tax Cuts and Jobs Act, the estimated $1.64 trillion in profits of which went to executives and investors over workers by nearly a 3-to-1 margin. Raising the corporate tax rate would also help ensure that corporations invest their fair share in American workers, education, and infrastructure — a recent Institute on Taxation and Economic Policy report revealed 55 corporations paid $0 in federal taxes on 2020 profits.
- The GOP proposal would fund infrastructure investments through user fees — which experts agree would shift the burden to the working families:
- Executive Director of the Institute on Taxation and Economic Policy, Matthew Gardner:
- “Low-income families don’t have the same ability to pay [user fees]. The $20 you use to register your car is going to be a much bigger deal for a family below the poverty line.” [Governing, 4/1/13]
A multi-trillion dollar investment in infrastructure will create jobs and turbocharge the economy — and would pay for itself.
- 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.”