In SummarySummary: Democrats in Congress push for Biden’s $3.5 trillion rebuilding plan, but face opposition within their own party.
House Democrats announced a proposal Monday for tax hikes on big corporations and the wealthy to fund President Joe Biden’s $3.5 trillion rebuilding plan.
The proposal would revert tax rates to 39.6% on couples earning more than $450,000 and there would be a 3% tax on wealthier Americans making beyond $5 million a year. As for big businesses, the proposal would lift the 21% corporate tax rate to 26.5% on incomes beyond $5 million, AP News reported.
Rep. Richard Neal, the chairman of the tax-writing Ways & Means Committee, said the proposals would “expand opportunity for the American people and support our efforts to build a healthier, more prosperous future.”
The bill’s fate lies in one Democratic senator’s hand who says the cost will need to be decreased to $1 trillion to $1.5 trillion in order to win his support.
Sen. Joe Manchin announced there’s “no way” Congress will meet the goal from House Speaker Nancy Pelosi due to him having different perspectives with Democrats on spending and how to pay for a rebuilding plan, as reported by KDFW FOX 4 News. I cannot support $3.5 trillion,” Manchin stated on Sunday, citing in particular his opposition to a proposed increase in the corporate tax rate from 21% to 28% and new social spending. “We don’t have the need to rush into this.”
The White House, however, is open and welcoming to the preliminary tax plan. Deputy press secretary Andrew Bates says the plan “makes significant progress towards ensuring our economy rewards work and not just wealth.”