by Jarrett Renshaw and Jeff Mason
WASHINGTON (Reuters) – Negotiations on the massive plan for infrastructure in the United States wanted by Joe Biden are met with opposition from the Republican camp despite the White House’s proposal to scale it down.
The initial amount planned for this plan, which the American president made one of the priorities of his beginning of mandate, was 2,250 billion dollars (1,843 billion euros).
The White House on Friday proposed to revise it downwards to 1.7 trillion dollars, including cutting back on planned spending for telecommunications networks, roads and bridges.
The two camps, however, remain diametrically opposed, both on the overall amount of the plan and on its financing.
The White House tried to move the debate forward by presenting its new version on Friday at an online conference with a group of Republican senators.
“This proposal shows a desire to review the size downwards by cutting in certain sectors which are important for the president (…) while remaining firm on the aspects most vital for the reconstruction for the future of our infrastructure and our industries, “White House spokeswoman Jen Psaki told reporters.
Some spending removed from the new plan, including investments in research and development, could feature in other bills, she added.
TOO EXPENSIVE FOR REPUBLICANS
The group of Republican senators, which had put forward its own proposal, for a much smaller amount, said the White House’s new proposal was out of order but signaled its intention to continue the dialogue.
The Biden administration’s new proposal cuts investment in broadband networks to $ 65 billion from $ 100 billion in the original plan, shows an internal White House document.
Spending on roads, bridges and major infrastructure projects fell to $ 120 billion from $ 159 billion but remains well above the $ 48 billion desired by Republicans.
Less spending means less financing needs and Joe Biden remains committed to not raising taxes for people earning less than $ 400,000 a year, Psaki said.
Deemed too expensive by the Republicans, the Biden plan plans to modernize the transport network but also to tackle the effects of climate change and also includes a social component, especially for the elderly.
To finance it, it is planned to increase taxes on businesses and the wealthiest Americans.
Leading Republican lawmakers have said they will oppose any tax hikes.
(French version Patrick Vignal)
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