President Joe Biden’s New Infrastructure and Tax Plan
How does President Biden’s $2.25 trillion infrastructure plan affect CRE?
President Joe Biden unveiled his $2.25 trillion dollar infrastructure plan on Wednesday. The four-part, eight-year plan dedicates $670 billion for transportation, $650 billion for initiatives tied to improving the quality of life at home, $580 billion for American manufacturing, and $400 billion for improved elderly care. The infrastructure plan impacts both commercial and multi-family real estate in the following ways; affordable housing is a big part of the plan. President Biden’s infrastructure plan is proposing to invest $213 billion to produce, preserve, and retrofit more than seven million affordable and sustainable housing units.
How does he propose that the infrastructure plan will be paid for?
Part of President Biden’s infrastructure plan is to increase the corporate income tax to 28% from 21%. The White House said that tax increases will be “fully paying for the investments in this plan over the next 15 years.” We will see if this comes to fruition.
Can President Biden’s infrastructure plan pass through Congress?
According to a 3/30/21 article on Bloomberg.com by Nancy Cook and Jennifer Epstein, “Garnering Republican support in either the House or Senate, both of which Democrats control by narrow margins, will be difficult, if not impossible.”
There will be many iterations of this new infrastructure and tax plan over the next few months. It’s anyone’s guess as to how this will impact the economy and financial markets going forward. One thing is for certain—there will be change…