WASHINGTON — President Biden’s economic advisers are preparing to recommend spending as much as $3 trillion on a sweeping set of efforts aimed at boosting the economy, reducing carbon emissions and narrowing economic inequality, beginning with a giant infrastructure plan that may be financed in part through tax increases on corporations and the rich.
After months of internal debate, Mr. Biden’s advisers are expected to present a proposal to the president this week that recommends carving his economic agenda into separate legislative pieces, rather than trying to push a mammoth package through Congress, according to people familiar with the plans and documents obtained by The New York Times.
The total new spending in the plans would likely be $3 trillion, a person familiar with them said. That figure does not include the cost of extending new temporary tax cuts meant to fight poverty, which could reach hundreds of billions of dollars, according to estimates prepared by administration officials. Officials have not yet determined the exact breakdown in cost between the two packages.
Mr. Biden supports all of the individual spending and tax cut proposals under consideration, but it is unclear whether he will back splitting his agenda into pieces, or what legislative strategy he and Democratic leaders will pursue to maximize the chances of pushing the new programs through Congress given their narrow majorities in both chambers.
high-technology industries in an escalating battle with China and other foreign competitors.
While the $1.9 trillion economic aid package that Mr. Biden signed into law earlier this month includes money to help vulnerable people and businesses survive until the pandemic ends, it does little to advance the longer-term economic agenda that Mr. Biden campaigned on.
The package under consideration would begin that effort in earnest. The first legislative piece under discussion, which some Biden officials consider more appealing to Republicans, business leaders and many moderate Senate Democrats, would combine investments in manufacturing and advanced industries with what would be the most aggressive spending yet by the United States to reduce carbon emissions and combat climate change.
It would spend heavily on infrastructure improvements, clean energy deployment and the development of other “high-growth industries of the future” like 5G telecommunications. It includes money for rural broadband, advanced training for millions of workers and 1 million affordable and energy-efficient housing units. Documents suggest it will include nearly $1 trillion in spending alone on the construction of roads, bridges, rail lines, ports, electric vehicle charging stations and improvements to the electric grid and other parts of the power sector.
Whether it can muster Republican support will depend in large part on how the bill is paid for.
Officials have discussed offsetting some or all of the infrastructure spending by raising taxes on corporations, including increasing the corporate income tax rate above the current 21 percent rate and a variety of measures to force multinational corporations to pay more tax in the United States on income they earn abroad. That strategy is unlikely to garner Republican votes.
told reporters last week. He predicted the administration’s infrastructure plan would be a “Trojan horse” for tax increases.
Mr. Biden’s team has debated the merits of aggressively pursuing compromise with Republicans and business leaders on an infrastructure package, which would most likely require dropping or scaling back plans to raise taxes on corporations, or preparing to move another sweeping bill through a special parliamentary process that would require only Democratic votes. Mr. Biden’s advisers plan to present the proposal to congressional leaders this week.
“President Biden and his team are considering a range of potential options for how to invest in working families and reform our tax code so it rewards work, not wealth,” Jen Psaki, the White House press secretary, said. “Those conversations are ongoing, so any speculation about future economic proposals is premature and not a reflection of the White House’s thinking.”
Mr. Biden said in January that his relief bill would be followed by a “Build Back Better Recovery Plan,” echoing the language of his campaign agenda. He said that plan would “make historic investments in infrastructure and manufacturing, innovation, research and development, and clean energy. Investments in the caregiving economy and in skills and training needed by our workers to compete and win the global economy of the future.”
The timing of that proposal — which Mr. Biden initially had said would come in February — slipped as administration officials focused on completing the relief package. In the interim, administration officials have concluded their best chance to advance Mr. Biden’s larger agenda in Congress will be to split “Build Back Better” into component proposals.
The first plan, centered on infrastructure, includes large portions of the plan Mr. Biden offered in the 2020 election. His campaign predicted that Mr. Biden’s investments would create 5 million new jobs in manufacturing and advanced industries, on top of restoring all the jobs lost last year in the Covid-19 crisis.