As spending and corporate income tax are set to increase, what’s left of physical infrastructure?
Jake Medwell analyses the potential impact of infrastructure legislation on trucking along with Loren A. Smith Jr., the president of Skyline Policy Risk Group.
This year’s spending on physical infrastructure projects like roads and bridges is yet to be determined. However, the government is targeting less than 10% allocation of the ARRA stimulus package for roads and bridges.
As both the Republicans and Democrats in Congress can’t seem to agree on the right definition of physical infrastructure, a lot remains to be seen on infrastructure spending and legislation in 2021.
But should there be a falling out between the two parties, the Democrats will still push their agenda of higher spending and corporate taxes by agreeing internally. That will mean minimal policy changes in the infrastructure legislation this financial year.
This year’s infrastructure bill has both the physical infrastructure aspect and the human infrastructure aspect. It may not necessary include the traditional highway bill. Exclusion of the highway bill means minimal policy changes in the legislation.
Even though the highway bill is up for renewal, much of that depends on bipartisan support. A falling out will leave only the spending and corporate income tax aspects for implementation.
Just to be clear, the Biden plan proposes raising the corporate tax rate from 21% to 28%. The personal tax code side will also be touched with substantial increases.
Further, the government spending expectation later in the year ranges between the $ 1 trillion and $ 2 trillion mark.
Jake Medwell is a serial entrepreneur and founding partner of 8VC. He leads the logistics and transportation focus of 8VC.
Medwell has spent a better part of his life building and growing companies, his main focus being both consumer and enterprise investments.