Biden finally admitted that Democrats don’t have the votes to raise corporate taxes for the “Building Back Better” agenda. – News Couple

Biden finally admitted that Democrats don’t have the votes to raise corporate taxes for the “Building Back Better” agenda.

After weeks of negotiations in the White House and on Capitol Hill, Democrats seem barely close to passing President Biden’s “building back better” agenda (which, remember, was divided into two bills, One “bipartisan” infrastructure bill and another to fund the massive expansion of the Social Safety Net).

To make matters worse (for America, not Democrats), the Washington Press Corp. reported last night that Democratic moderate Kirsten Sinema, who helped plunge Biden’s agenda deeper into chaos, would not support tax increases on corporations, wealthy individuals, or DC. gains.

Remember, President Biden and the Democratic leadership have promised that their multi-trillion plan for what is effectively a state-run redistribution of wealth in the economy is supposed to be paid for (mostly, at least) through tax increases. Republicans unanimously opposed this.

We have long suspected that this “obligation” to offset increased spending by raising taxes would ultimately be hollow, and On another day, Biden appeared to be hinting that they had abandoned plans to raise taxes on corporations and the wealthy. When asked about raising corporate taxes, Senator Joe Manchin said this week that “they’re going to pay their fair share.” Goldman’s chief policy analyst shared his latest thoughts on how the plan will be funded – or not – in a note to clients yesterday.

But for the first time, President Biden has effectively confronted and acknowledged the American public, telling a CNN town hall meeting in Baltimore that he doesn’t think there are enough Democrats’ votes to raise tax rates as part of his deal — whether those would be raising taxes on the wealthy or companies.

As Axios put it, Biden’s comment that Democrats are effectively abandoning their hopes for a corporate tax increase was the “highest headline” that night.

Does this mean the Democrats will simply give up, or try a more modest plan that might win some GOP support? Of course not: Biden said last night that he thinks they’ll come to a deal on the overall legislative package anyway — they’ll also just need to commit trillions of dollars in additional spending, debt and money printing.

“I don’t think we’ll be able to get a vote,” Biden said in response to a question about rates for individuals and companies. “Look, when you’re in the United States Senate and you’re president of the United States and you have 50 Democrats, everybody’s the president.”

Many have ridiculed that Senator Joe Manchin, given his status as a major swing vote, is just as powerful as the president. Now, Biden admits it in a joke. And you know what they say about jokes.

A White House official later told Bloomberg that Biden was only referring to corporate tax rate increases, not potential increases on the wealthy, financial transactions, or anything else.

At this point, there have been reports that Senator Senema has committed to a broad scheme to raise taxes, but what these tax increases look like is unclear. In the words of BBG, “Details of what it would back it up weren’t immediately clear.”

Despite progressives’ attempts to back off, the key figure for the Democrats’ Social Safety Net Expansion Bill has shrunk to $2 trillion, from $3.5 trillion.

Biden has also acknowledged that two items from his agenda have been greatly reduced or eliminated: one an initiative to provide paid family leave, which will be reduced to just four weeks from 12, and a proposal to make community college free. Biden said he would push for an increase in Pell scholarships for low-income college students instead.

Thanks to trillions of post-COVID spending, US inflation is already accelerating at its fastest rate in decades, and not just the US: Prices are rising around the world.

But what is the risk of Democrats passing another massive spending package without enough tax increases to offset it? Well, as Paul Tudor Jones said a few days ago, inflation is indeed “the single greatest threat to our society”.

In all likelihood, Democrats already understand this: But if they don’t pass some sort of spending package, what will they have to do before midterms next November?

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button