A group of US senators agreed, at a meeting in the White House earlier this week, on a framework for president Joe Biden’s extensive infrastructure plans, including the $ 1.2 trillion price tag for an eight-year period and how to finance it.
In order to finance the plans, the Biden government explicitly wants to reduce the tax gap. This is the difference between what should be paid in taxes and what is actually paid. Money must also be released through the fight against fraud in the labour market and the reallocation of unused funds. To prevent international business from fleeing America Biden has pushed the agenda for ‘minimum corporate tax’. It will prevent Europeans from getting the benefits from increases in US taxes.
The deal as it stands now involves a so-called bipartisan agreement by a limited group of Democratic and Republican senators. The plan has yet to be put to a vote in Congress.