June 7, 2021
President Joe Biden recently revealed his American Jobs Plan (AJP), a massive eight-year spending proposal for infrastructure and other projects. The plan’s original $2.3 trillion price tag would equal approximately 1% of annual U.S. gross domestic product (total economic output in goods and services) in each year of the legislation’s lifespan. The Biden Administration has subsequently proposed reducing the size of the plan. The administration is seeking higher corporate taxes to pay for the legislation.
We believe higher tax rates, along with the AJP’s infrastructure mandates, should benefit the muni market and muni investors. We also expect the proposal to promote job growth and broad U.S. economic gains.
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