Bob Johnson says Biden’s Build Back Better bill needs to direct money to Black-owned businesses

BET founder Bob Johnson informed CNBC on Tuesday the Biden Administration must take further steps in its Construct Again Higher plan to sort out the wealth hole between Black and white People.

“What I have a look at is, what are you able to do to extend Black wealth? And meaning you bought to place extra capital on the disposal of Black enterprise women and men who need to create jobs, create wealth, create development alternatives,” Johnson mentioned. “That’s what was lacking within the Construct Again Higher Act.”

Johnson, 75, made historical past as America’s first Black billionaire when he offered BET to Viacom in 2001. Shortly after the sale, he began the funding agency The RLJ Cos. He’s not on the Forbes billionaires record.

As a thought chief within the Black neighborhood, Johnson final 12 months mentioned that Black Historical past Month — in February annually — ought to focus extra on future alternatives.

In Tuesday’s interview on “Squawk Field,” Johnson mentioned the $1.75 trillion Construct Again Higher invoice “was by no means focused to how do you shut the Black wealth hole.” It additionally fails to implement provisions that may be cost-free but nonetheless assist Black People accumulate financial savings, he added.

The outspoken entrepreneur has criticized Democrats and Republicans alike for not doing sufficient to deal with enduring inequities for Black People. In 2020, he known as for $14 trillion of reparations for slavery and urged Black People kind their very own political occasion.

Automotive affordability, for instance, would dramatically cut back the 401(ok) cash-outs that Black People need to make once they change jobs, Johnson informed CNBC. Mandating all firms to implement auto affordability would over a era put greater than $1 billion of into Black People’ retirement financial savings, he added.

“Closing the Black wealth hole isn’t a job. It’s not giving us extra consumption cash to spend. It’s giving us extra entry to wealth sustainability,” Johnson mentioned. 

The Construct Again Higher plan stalled in December after Sen. Joe Manchin, D-W.Va., mentioned he wouldn’t vote for the invoice, which wants each Senate Democrats’ help to grow to be signed into legislation. The laws has already handed the Home. Biden not too long ago mentioned he plans to interrupt up the invoice to first go spending of greater than $500 billion to sort out local weather change.

Johnson has additionally rallied for Congress to enact the Higher Alternative and Outcomes for Socially Deprived Expertise, or BOOST, Act, calling it Tuesday the “most vital option to direct capital to Black companies. 

The invoice proposes to supply $30 billion to firms that put money into companies owned by folks of colour, and provides tax deductions to those that finally offered their shares in these companies as soon as they grew to become priceless.

Johnson additionally mentioned he’s put his advocacy for reparations on the backburner, saying that neither facet of the political aisle has provided robust help for the thought.