WASHINGTON (AP) – President Joe Biden and his team have offered a very inflated projection of how many jobs his infrastructure plan would create, an account that his press secretary corrected on Tuesday. Biden has also gone beyond the facts when he dismisses the potential disadvantages of the tax increases needed to pay for all of these roads and bridges.
A look at the administration’s sales of infrastructure in recent days:
BIDEN, when asked if his proposed increase in corporation tax would lead American companies abroad: “Not at all … because there is no evidence of it … it̵
FACTS: Hardly bizarre. The city administration is aware that lower tax rates abroad could tempt U.S. businesses to relocate. It is another matter whether the proposed tax increase would be large enough to have that effect.
On the same day that Biden made his comments, Finance Minister Janet Yellen endorsed a global minimum tax rate to precisely prevent countries from lowering rates to entice companies to relocate.
Yellen said it was time to end a 30-year “race to the bottom” of nations lowering their corporate tax rates to secure a benefit. Her approach suggests that the administration at least accepts the possibility that an increase in corporate tax in the United States could result in U.S. multinational corporations moving their headquarters abroad.
Biden is proposing an increase in the US corporate tax rate to 28% from 21% to partially pay for its infrastructure proposal. President Donald Trump lowered the rate from 35% in his 2017 tax law.
BIDEN, about his $ 2.3 trillion infrastructure plan: “Independent analysis shows that if we order this plan, the economy will create 19 million jobs – good jobs, blue collar jobs, well-paying jobs.” – The White House remarks Friday.
BRIAN DEESE, director of the White House National Economic Council: “Just looking at the analyzes we’ve seen this week, Moody’s suggests it would create 19 million jobs.” – “Fox News Sunday.”
FACTS: That’s not what Moody’s Analytics said. The infrastructure plan is not expected to create anything close to 19 million jobs in less than a decade.
Instead, the financial consulting firm estimated that nearly 16 million jobs will be created in the United States by 2030 without either Biden’s infrastructure plan or the $ 1.9 trillion rescue package approved last month. With 1.6 million a year, it would be a sluggish pace in job creation below the roughly 2.2 million pace before the pandemic.
Moody’s says the rescue plan will generate around 700,000 jobs over the next decade, which otherwise would not have existed, and it says the infrastructure plan would create approx. 2.6 million over the next decade. This would total approx. 19 million, but with only a modest portion coming as a result of the infrastructure proposal.
Asked about the investigation on Tuesday, Biden press secretary Jen Psaki described it correctly:
“Moody’s ran an analysis that showed the economy would create 19 million jobs over the next decade if Congress passed the U.S. job plan – nearly 3 million more than if it did not,” she said. “So that’s it – that’s what the impact of the US job plan would be: 2.7 million to be completely clear.”
TRANSPORT SECRETARY PETE BUTTIGIEG: “We hope we get car workers, union car workers, and I make cars one way or another. Why not let them lead the revolution to electric vehicles, about which, by the way, there is a very hot competition with China and many other places. “- notes Sunday on ABC’s” This Week. “
FACTS: This scenario disguises a likely effect of the transition to the production of far more electric cars – fewer jobs in car production.
It does not take as many people to build an electric car as a gas-powered one, and the jobs that would be created in these new factories may pay less.
Electric cars generally have 30% to 40% fewer parts than traditional cars and are easier to build. In addition, many jobs that build the batteries in electric cars are non-professional jobs at companies that supply the car manufacturers, rather than at union plants operated by the American car companies themselves.
Associated Press author Cal Woodward contributed.
EDITOR’S COMMENT – A look at the accuracy of politicians’ demands.
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