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Biden’s infrastructure job inflation



WASHINGTON (Associated Press)-President Joe Biden and his team provided an overly high forecast of how many jobs his infrastructure plans will create, and his press secretary corrected this statement on Tuesday. When Biden eliminated the potential drawbacks of the tax increases paid for all these roads and bridges, he was also out of fact.

Take a look at the government’s infrastructure sales in the past few days:

Corporate tax

When asked if Biden’s proposed increase in corporate income tax would take American companies overseas: “There is no…because there is no evidence that…that̵

7;s weird.”-Addressing reporters on Monday.

Fact: Not surprising at all. The Biden administration is aware that lowering overseas tax rates may induce US companies to relocate. Whether the proposed tax increase is sufficient to produce this effect is another matter.

On the same day that Biden made his comments, Treasury Secretary Janet Yellen approved the world’s lowest corporate tax rate to prevent countries from reducing tax rates to induce companies to migrate.

Yellen says it’s time to end the 30-year “trough race” in countries that have lowered their corporate tax rates to cut advantages. Her practice shows that the U.S. government has at least accepted the possibility that an increase in the U.S. corporate tax rate may cause U.S. multinational corporations to move their headquarters overseas.

Biden proposed to increase the US corporate tax rate from 21% to 28% to partially pay for his infrastructure proposal. President Donald Trump lowered the tax rate from 35% in his 2017 tax law.

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Infrastructure work

Biden said in his $2.3 trillion infrastructure plan: “Independent analysis shows that if we pass the plan, the economy will create 19 million jobs-good jobs, blue-collar jobs, high-paying jobs.” The White House delivered a speech on Friday.

BRIAN DEESE, Chairman of the White House National Economic Council: “You only look at the analysis we saw this week. Moody’s hinted that this will create 19 million jobs.”-“Sunday Fox News.”

Fact: This is not what Moody’s Analytics said. It is estimated that in less than ten years, the infrastructure plan will not create nearly 19 million jobs.

Instead, the economic consulting firm calculated that without Biden’s infrastructure plan or the $1.9 trillion rescue package approved last month, it would create nearly 16 million jobs in the United States by 2030. If it grows at a rate of 1.6 million per year, it will be a slow rate of job creation, lower than the rate of approximately 2.2 million before the pandemic.

Moody’s stated that the rescue plan will create about 700,000 jobs in the next ten years, otherwise it will not exist. The agency said that the infrastructure plan will create about 2.6 million jobs in the next ten years. This will total about 19 million, but the impact of the infrastructure proposal is small.

When asked about the research, Biden Press Secretary Jen Psaki correctly described the research:

She said: “An analysis conducted by Moody’s shows that if Congress passes the U.S. Jobs Program, the U.S. economy will create 19 million jobs in the next ten years, nearly 3 million more than those that do not pass.” “That’s it- This is the impact of the American Jobs Plan: 2.7 million, it is completely clear.”

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Automatic job

PETE BUTTIGIEG, Director of the Transport Bureau: “I hope there are auto workers, union auto workers, and I want to build cars in one way or another. Why not let them drive the revolution of electric cars, by the way, with China and many other places The competition is very fierce.” -Said on ABC’s “This Week” on Sunday.

Fact: This situation obscures a possible impact of the transition to more electric vehicle production, which is the reduction of car manufacturing.

You don’t need as many people as gasoline cars to build electric cars, and jobs created in these new factories may pay lower salaries.

Electric cars usually have 30% to 40% fewer parts than traditional cars and are easier to manufacture. Similarly, in the field of electric vehicle battery manufacturing, many jobs are non-union jobs for companies that provide products to automakers, rather than union factories run by American auto companies themselves.

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Associated Press writer Cal Woodward contributed.

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Editor’s Note-See the authenticity of the claim from the perspective of a politician.

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