The American Jobs Plan
The American Jobs Plan that was introduced by President Joe Biden on March 31, 2021, alongside the Made in America Tax Plan. These plans address infrastructure and tax system reform over the next decade. Shortly after those, President Biden presented the American Families Plan which expands on more economic and infrastructure investments. We know tax language can be overwhelming for anyone, particularly for an entrepreneur who wants to know how their business will be affected. Our goal is to keep you informed with the basics, but it is still important to speak with a qualified accounting professional for more individualized needs.
Small Business Investment
With well over 30 million small businesses in the United States, entrepreneurship is important in every community. President Biden is looking to invest $110 billion into financial assistance programs for small business, giving businesses more access to credit, research and development funding, and venture capital.
Physical Infrastructure
There are plans to also improve the physical infrastructure of the country, which will in turn help small businesses. Those upgrades bring the possibility of government contracting opportunities for businesses in the infrastructure area. Not only that, but the development of roadways is expected to bring more traffic, increasing consumers for the businesses in that area.
Over $620 billion would be used to repair roads, bridges, and transit systems across the United States. A $213 billion investment would be used to upgrade and modernize federal buildings, schools, and housing communities. The American Jobs Plan would also invest about $111 billion in bringing clean water to communities across the country, plus $100 billion in power infrastructure.
Digital Infrastructure
Along with the physical infrastructure changes, there are plans to invest in digital infrastructure. The Biden administration recognizes the importance of affordable internet access, especially after the COVID-19 pandemic forced many people to go digital or work remotely. With an investment of $100 billion, there will be 100% high-speed broadband coverage in the United States. There is also talk of subsidizing internet costs for taxpayers in the short-term, but no proposal for that has been made at this time.
Where to go from here:
Keep in mind, all these proposals are currently just that – proposals. They still need introduced to Congress and passed in both the House and the Senate before being signed into law or passed through budget reconciliation. While many people in office support their passing, there is still the potential for them to be changed or knocked down completely.
CPA On Fire can help you navigate these evolving waters as an entrepreneur. We will keep you posted on the updates as more changes roll out. In the meantime, schedule a free financial review with us to see what we can do to help you and your business.