US Chamber of Commerce says Biden infrastructure bill is 'dangerously misguided'

Kudlow: Biden ready to transform economy into ‘centrally planned’ socialism

FOX Business host Larry Kudlow examines the president’s plan for infrastructure spending.

The U.S. Chamber of Commerce on Wednesday described President Biden's $2.5 trillion infrastructure bill as "dangerously misguided."

The White House on Wednesday said it will pay for the eight-year initiative by raising the corporate tax rate to 28% from 21% — rolling back part of former President Donald Trump's 2017 tax cuts — and increasing the global minimum tax on U.S. corporations to 21% from 13%.

WHAT'S IN BIDEN'S $2.5T INFRASTRUCTURE AND TAX PROPOSAL?

“We need a big and bold program to modernize our nation’s crumbling infrastructure and we applaud the Biden administration for making infrastructure a top priority," the Chamber tweeted. "However, we believe the proposal is dangerously misguided when it comes to how to pay for infrastructure."

The world’s largest business organization, which has existed since 1912, added that is "strongly" opposes "the general tax increases proposed by the administration which will slow the economic recovery and make the U.S. less competitive globally – the exact opposite of the goals of the infrastructure plan."

"We urge both Democrats and Republicans to avoid further partisan gridlock and provide productive solutions to get an infrastructure bill passed this year," the Chamber said.

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The Biden administration is also planning a second major package, which could cost upward of $1 trillion, that it will unveil in April. That measure, which will likely be funded by tax increases on wealthy Americans, is expected to focus on domestic issues, such as expanding health care, providing universal kindergarten, extending the child tax credit and offering paid family leave.

The Chamber said that a major investment in the nation's infrastructure, if "properly done…should be paid for over time — say 30 years — by the users who benefit from the investment," rather than over eight years.

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Biden formally introduced the American Jobs Plan in Pittsburgh on Wednesday afternoon, his opening salvo in what's expected to become a contentious, monthslong negotiation with Congress.

Fox Business' Megan Henney contributed to this report.

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