The Administration of the President of the United States, Joe Biden and the Democrats in Congress would be willing to give in to pressure from more moderate legislators, as well as business lobbies, and withdraw their plans to raise corporate taxes as a formula to finance part of your financial agenda.
The White House and Democratic leaders on Capitol Hill have considered an increase in the corporate tax rate along with increases in personal income tax on the highest rents and capital gains. However, the resistance shown to these increases by the Democratic senator from Arizona, Kyrsten Sinema, has begun to pay off.
Sinema showed his complete opposition to the House of Representatives’ proposal to raise corporate tax from 21% to 26.5% (to raise about $ 450 billion in 10 years) and to increases on capital gains and tax rates. top marginal income tax (which would bring in another $ 300 billion ).
Since Democrats have a simple majority in the Upper House, they cannot afford to lose the support of any of their senators. Both Sinema and his West Virginia counterpart Joe Manchin have criticized Biden’s overspending program.that initially amounted to 3.5 trillion dollars. Manchin has drawn a red line assuring that he will not support a package that exceeds $ 1.5 trillion.
Although White House officials and Democratic leaders hoped to persuade Sinema to change his stance, his criticisms of the proposals for funding the package, which could be cut to as low as $ 2 trillion, reflect that Democrats are aware of the situation. Without your support, they will not be able to secure the necessary votes in the Senate to pass the legislative priority of Biden’s economic agenda.
Speaker of the House of Representatives, Democrat Nancy Pelosi, acknowledged on Thursday that his party is making great progress in reaching an agreement on the budget spending plan. Pelosi assured that it is an option that Biden’s package of social proposals is approved without raising taxes.
Biden’s initial tax proposal has been watered down substantially in recent months. Recall that the US president had proposed to pay for his social programs by increasing the maximum rate of personal income tax to 39.6% from 37% and corporate tax to 28% from 21%, among other measures .
Brian Deese, director of the National Economic Council, and Janet Yellen, the Secretary of the Treasury, met this Wednesday with Ron Wyden and Richard Neal, the main legislators on tax matters in Congress, to discuss possible alternatives. Democrats hope that some of the costs of Biden’s extra spending plan can be offset by initiatives such as trying to cut the federal government’s costs for prescription drugs.