WASHINGTON (AP) – President Biden and his team have made an exaggerated forecast of how many jobs his infrastructure program will create, his secretary of state said in a statement on Tuesday. Biden also went beyond the facts when he rejected the possible negative aspects of the tax increase needed to pay for all those roads and bridges.
A look at the level of infrastructure sales in the last days of the administration.
When BIDEN was asked if the increase in corporate income tax he proposed would lead to American companies abroad. – Remarks to journalists on Monday.
FACTS. It is hardly strange. The Biden administration is aware that low tax rates abroad may tempt US companies to relocate. Whether the proposed tax increase will be large enough to have that effect is another matter.
On the same day that Biden made his remarks, Finance Minister Ethan Yellen approved the global minimum corporate tax rate so that countries do not repeat interest rates to relocate businesses.
Yellen said it was time to end the 30-year “race to the bottom” for countries that have the advantage of cutting tax rates. According to him, the administration at least accepts the possibility that the increase in corporate tax rates in the US may lead to the multinational US companies relocating their headquarters abroad.
Biden is proposing to increase the US corporate tax rate from 21% to 28% to pay in part for his infrastructure offer. President Donald Trump cut the rate from 35% in his 2017 tax bill.
BIDEN, on its $ 2.3 trillion infrastructure project. “Independent analysis shows that if we adopt this program, the economy will create 19 million jobs – good jobs, blue jobs, good wages.” – The White House said on Friday.
BRIAN DE E, Director of the White House National Economic Council. “Looking at the analysis we’ve seen this week, Moody’s estimates that it will create 19 million jobs.” – “Fox News Sunday”:
FACTS. Moody’s Analytics does not say that. The infrastructure plan does not expect to create about 19 million jobs in less than a decade.
Instead, the economic consulting firm estimates that nearly 16 million jobs will be created in the United States by 2030 without Biden’s infrastructure program or the $ 1.9 trillion bailout package approved last month. At 1.6 million a year, that would be the slow pace of job creation, down from 2.2 million before the epidemic.
Moody’s says the rescue plan will create about 700,000 jobs over the next decade, which it would not otherwise be, and that the infrastructure plan will create about 2.6 million people over the next decade. It will total about 19 million, but only a modest part of the infrastructure offer.
Commenting on the study, Biden’s spokesman En Psaki described it correctly on Tuesday.
“Moody’s conducted an analysis that showed that the economy would create 19 million jobs over the next decade if Congress passed the US Action Plan, almost 3 million more than if it did not,” he said. “So, this is what will have an impact on the American job program. 2.7 million, to be clear. “
TRANSPORT SECRETARY PET BUT IG IEG. “I hope we will have auto workers, trade union auto workers, who will make cars one way or another. “Why not take the revolution to electric vehicles, for which, by the way, there is a lot of competition with many other places in China.” – notes on Sunday on ABC’s “This Week” program.
FACTS. This scenario obscures one possible outcome of switching to much more electric vehicles: fewer car jobs.
It does not take as many people to build an electric car as a gas car մեքեն The jobs that would be created in these new factories may cost less.
Electric cars generally have 30% to 40% fewer parts than traditional cars, they are easier to build. In addition, many jobs that build batteries used in electric cars are non-union work in companies that supply car manufacturers, rather than in union factories run by US automakers themselves.
Associated Press writer Cal Woodward contributed.
EDITORIAL NOTE – A look at the veracity of statements made by politicians.
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