How does it compare to bipartisan deal?
WASHINGTON – The bipartisan infrastructure deal that President Joe Biden embraced last week would add hundreds of billions of dollars to the economy by 2050, in contrast to the economic drag of his original proposal, according to a new analysis.
The difference is the corporate taxes that Biden proposed raising when he laid out his initial infrastructure plan, which are not part of the bipartisan agreement.
Biden argued his proposal would create good jobs and strengthen the economy while making corporations pay their fair share.
But economists at the University of Pennsylvania’s Wharton School calculated the higher taxes would decrease firms’ incentives to invest and disincentivize saving by households.
“That acts as a significant drag on savings in the economy. So with less savings over time, we have less productive private capital,” said Jon Huntley, a senior economist…