WASHINGTON (AP) – President Joe Biden and his team have offered inflated forecasts of how many jobs his infrastructure plan will create, an account that his press secretary was revised on Tuesday. Biden was also too far-fetched as factual dismissing the potential disadvantage of all the tax hikes needed to pay for all those roads and bridges.
Take a look at the management’s offering of infrastructure for the past few days:
BIDEN, when asked if the corporate income tax hike he proposed would drive US companies overseas: “No … because there is no evidence that … that̵7;s strange” – a note for reporters Monday.
Fact: It’s hardly bizarre. Biden’s management realizes that lower foreign tax rates might tempt US companies to move.Is the proposed tax hike big enough to take effect? That’s another matter.
On the same day, Biden made his comments.His Finance Minister Janet Yellen accurately endorsed the minimum corporate tax rate around the world to prevent countries from slashing rates to entice businesses to move.
Yellen said it was time to put an end to the 30-year “lowest competition” of countries that cut corporate tax rates to gain an edge. Her approach suggests that management at least acknowledges the possibility that US corporate tax hikes could result in U.S. multinationals moving their headquarters overseas.
Biden is proposing to raise the U.S. corporate tax rate to 28% from 21% to pay part of his infrastructure offer. President Donald Trump cuts the tax rate from 35% in the 2017 tax law.
BIDEN in his $ 2.3 trillion infrastructure plan: “An independent analysis shows that if we go through this plan, the economy will create 19 million jobs – good jobs, blue-collar jobs, well-paying jobs.” – The White House said on Friday.
BRIAN DEESE, Director of the White House’s National Economic Council: “You look at just the analysis we’ve seen this week, Moody’s suggests it will create 19 million jobs.” – “Fox Sunday News”
Fact: That’s not what Moody’s Analytics said.The infrastructure plan isn’t expected to generate nearly 19 million jobs in less than a decade.
The economic consulting firm calculated nearly 16 million jobs will be created in the United States by 2030 without Biden’s infrastructure plans or the $ 1.9 trillion assistance package approved last month at 1.6 million per. That year could be the sluggish pace of job creation, just below 2.2 million steps before the outbreak.
Moody’s said the aid plan would create about 700,000 jobs over the next decade that would not exist and said the infrastructure plan would generate about 2.6 million people over the next decade. That would total approximately 19 million, but only a small fraction of that would be a result of the infrastructure offers.
Asked about the study on Tuesday, Biden’s press secretary Jen Psaki correctly described:
“Moody’s does an analysis showing that the economy will create 19 million jobs over the next decade if Congress passes America’s plans – almost 3 million more than it doesn’t,” she said. The impact of the American Jobs Plan: 2.7 million people, just to be as clear as possible. ”
Transportation Secretary General PETE BUTTIGIEG: “We are going to have auto workers, automobile unions. I hope to build cars one way or another. Why not let them lead a revolution in electric vehicles now in a very heated competition with China and beyond? ”- Sunday speech on ABC’s“ This Week ”.
Truth: This situation hides one of the effects of the shift to more mass production of electric vehicles: fewer automobiles.
It doesn’t take as many people to build an electric vehicle as it is with gas-powered cars, and the work to be built at these new factories might pay less.
Electric cars typically contain 30% to 40% less parts than conventional cars and are easier to build. As well, many of the jobs building batteries used in electric cars are non-union jobs at companies supplying automakers rather than factory jobs run by U.S. automakers.
Associated Press author Cal Woodward contributed.
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