Some Democrats, including Manchin, do not support Biden’s proposal to raise corporate taxes.
President Biden’s proposed infrastructure bill, about 4 trillion budget will come from tax increases on businesses and the wealthy, some Democratic members of Congress for the White House’s vision raised doubts. The Washington Post analyzed that the Democratic Party also has regional differences of opinion: the estate tax makes Democrats from agricultural states feel tricky, while Democrats from coastal areas want to abolish the state and local tax deduction (state and local tax deduction, SALT) cap.
The Trump administration introduced tax reform during its term, setting a $10,000 cap on the state and local tax deduction, a change that would be more of a loss for people living in high-tax states. The Washington Post reported that the repeal of the state and local tax credits would be “an expensive tax cut” and the government would have to raise taxes from other programs to make up for it.
The Washington Post points out that the Democratic Party is uneasy about Biden’s proposal, which has an impact on whether Biden’s domestic push will go smoothly. The White House is now trying to expand the party’s support for Biden’s infrastructure proposals, and Biden will meet with several Democratic members of Congress this week for consultations. As for the outcome of the discussion, whether the conclusion can be reached, are still unknown.
The Democratic Party sources revealed that some of the money makers are quite worried about the political effects that may be triggered by the tax increase before the midterm elections, and the Democrats are afraid of a tough battle to maintain the majority of seats in the House. Two people familiar with the matter pointed out that the “Democratic Congressional Campaign Committee” (Democratic Congressional Campaign Committee) chairman Sean Patrick Maloney, who is responsible for election fundraising, has privately raised warned that the tax increase would be detrimental to Democratic members of Congress who are up for re-election in midterm elections.
The White House last month unveiled a 2.3 trillion jobs and infrastructure bill, funded by a corporate tax increase, and a $1.8 trillion American Family Planning Act, funded by tax increases on the wealthy and investors. The source pointed out that Senate Minority Leader Mitch McConnell (Mitch McConnell) in a private conversation with Democratic allies, for example, said that if the middle-of-the-road Democratic Party member of the Arizona U.S. Senator Sinatra (Kyrsten Sinema) voting record, the tax increase proposal in Congress to pass the chances of slim.
Doug Holtz-Eakin, an economic adviser to former President George W. Bush Jr. said Biden’s intentions to fund the long-term bill are worthy of recognition, “but Democratic members of Congress don’t want to get into the political spit of a tax increase during the midterm elections, and there’s a huge difference in opinion. It’s almost like two worlds”.
Middle-of-the-road Democrats, including West Virginia U.S. Senator Joe Manchin, have indicated they do not support Biden’s proposal to raise the corporate tax rate from 21 percent to 28 percent, and suggest it should be raised to 25 percent.
Biden for more than a million dollars in annual income investors to raise capital gains tax (capital gains tax) proposal, Democratic New Jersey U.S. Senator Menendez (Robert Menendez) recently accepted the Wall Street Journal interview, said that the proposed tax increase “seems too high “.
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