FACTBOX-Here's where Biden and Republicans in Congress might work together

Biden's $2 trillion infrastructure plan https://joebiden.com/clean-energy emphasizes American labor and materials, but focuses heavily on green energy infrastructure, including electric vehicle charging stations, achieving a carbon pollution-free power sector by 2035, mass transit and modifying homes and buildings to make them energy efficient. The plans may need to be scaled back to more conventional road investments to win the support of Republicans, but that will dismay the Democratic Party's progressive left.

FACTBOX-Here's where Biden and Republicans in Congress might work together

Republicans in Congress are likely to try to block the more progressive elements of U.S. President-elect Joe Biden's economic agenda, including plans to raise taxes on corporations and wealthy Americans, increase funding for childcare, and for a "public option" health program to compete with private insurers. But there are areas where the two parties may have some potential for cooperation, including where existing laws Republicans support expire.

CORONAVIRUS STIMULUS Current talks to craft a coronavirus ad package in Congress before the end of this year could dictate what happens in 2021. A bipartisan group of lawmakers are pushing a $908 billion plan to provide help to extend unemployment aid and provide grants to small businesses, municipalities, airlines and other sectors hard hit by the COVID-19 pandemic.

Failure to reach a deal by year-end would increase economic hardships, increasing pressure for both parties to pass a major coronavirus bill after Biden takes office on Jan. 20. INFRASTRUCTURE

Both parties have pledged to invest in rebuilding crumbling U.S. roads, bridges, tunnels, ports, communications networks and water utilities. Biden's $2 trillion infrastructure plan https://joebiden.com/clean-energy emphasizes American labor and materials, but focuses heavily on green energy infrastructure, including electric vehicle charging stations, achieving a carbon pollution-free power sector by 2035, mass transit and modifying homes and buildings to make them energy efficient.

The plans may need to be scaled back to more conventional road investments to win the support of Republicans, but that will dismay the Democratic Party's progressive left. And how will it be paid for? The two parties have disagreed for years on how to finance infrastructure improvements, with Republicans unwilling to raise federal fuel taxes that have been flat since 1993.

But a one-year extension of the current transportation funding law expires on Sept. 30, 2021, an event that could force some movement on the issue next year. TAXES

Expiring provisions in the 2017 Republican-passed Tax Cuts and Jobs Act could encourage some in the party to cut deals with Biden, but not right away. Lowered individual tax rates will not expire until the end of 2025 - after Biden's term ends - making it unlikely that Republicans would agree to Biden's call for raising taxes on corporations or those earning over $400,000 a year.

Other business tax provisions expire before then, including those allowing immediate deduction of all research and development expenses after 2021 and immediate expensing of all short-life business equipment expenses after 2022. According to the Tax Foundation https://taxfoundation.org/expiring-tax-provisions-2020-tax-extenders, 33 smaller temporary tax breaks, known as "extenders," including for alternative fuels, tribal investments and energy efficiency investments, expire at the end of 2020. Renewing or extending these could be the basis for negotiations between the parties.

TRADE Biden will probably find some support for new trade deals among Republicans, who had mixed views of President Donald Trump's "America First" trade wars but supported his revamp of the North American Free Trade Agreement.

To negotiate large, comprehensive deals, such as the talks underway with Britain and the European Union, Biden will need to renew Trade Promotion Authority, the "Fast Track" negotiating legislation that expires on July 1, 2021. Biden may need to win over a large swathe of his own party, which has often been reluctant to support trade deals. To do so, he will need to attach heavy strings to this, including tougher labor and climate change provisions.

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