(Washington) The White House and US Democratic officials engaged in frantic negotiations Wednesday to resolve lingering differences over Joe Biden’s massive social spending plan before the president travels to Europe.
While the day began with the hope of a deal, the possibility of a consensus remains remote early in the evening due to disagreements over how to fund the $1.5 trillion to $2 trillion in social spending.
A key senator from the center has signaled his reluctance to plan a new tax on billionaires.
For her part, Democratic House Speaker Nancy Pelosi called for new discussions Thursday to advance Joe Biden’s agenda.
The US president reportedly agreed to more concessions on Wednesday, such as canceling sick leave, in a bid to work around a deal before leaving for Rome on Thursday for a G20 summit, according to the report. The Wall Street Journal.
Joe Biden hopes to present to his international partners, in Italy and in Glasgow for the COP26 climate conference, an image of a United States committed to energy transformation and growth, but also to combating social inequalities and fiscal evasion.
“Kindergarten for everyone. Historic climate investments. Lower health care costs. They are all within our reach. Let’s make these bills cross the finish line,” Joe Biden tweeted.
“We’re very close” to an agreement, he previously assured White House spokeswoman Jen Psaki.
Democrats are working on two 8- to 10-year programs: one relating to investments worth $1.2 trillion to modernize infrastructure. The other relates to the social and environmental measures amounting to 1500 to 2000 billion.
Although planned, it would be “the largest investment in the history of the fight against the climate crisis by the United States,” said Jen Psaki.
But funding for these plans has been the subject of heated debate for months within the Democratic Party.
On Wednesday, the outlines of the tax on the super-rich were presented.
“The billionaire’s income tax will apply to about 700 taxpayers and raise hundreds of billions of dollars,” according to this new proposal by Democratic Senator Ron Wyden, chair of the US Senate Finance Committee.
This would ensure that “the country’s richest people pay their fair share.” [financer] Historic investments in favor of childcare, paid leave and combating the climate crisis,” as outlined.
The great new is the taxation of unrealized capital gains, these idle gains in the thick portfolios of stocks of great American fortunes.
Thus the text specifies that “the proposal will cover only taxpayers with annual income of more than $100 million or more than $1 billion in assets over three consecutive years.”
According to US media, the tax rate used will be 23.8%.
Today, a wealthy shareholder like Elon Musk, the president of Tesla, or Jeff Bezos, the founder of Amazon, doesn’t pay taxes on these unrealized capital gains arguing that those gains don’t exist as long as they aren’t actually spent.
But centrist Senator Joe Manchin has dampened hopes of passing the tax.
“I don’t like the idea that we target different people […] that contribute to society and create a lot of jobs,” he said.
However, his vote, like that of his colleague Kirsten Senema, is crucial, because the Democratic majority in the Senate is so weak that the party must get all the votes without exception.
However, he told reporters, Democrats should “absolutely” be able to get a framework agreement in place by the end of the day, political news site The Hill reported.
Kirsten Sinema, who opposes raising taxes, has not said if she intends to support this method of financing. On the other hand, it decided on Tuesday in favor of a minimum tax of 15% on multinational corporations.
She explained that she saw this as “a logical step to ensure that companies achieve highly profitable.” […] Pay a reasonable minimum tax on their earnings.
This minimum tax, which should affect about 200 companies including the tech sector, has already made a comeback after a text was introduced on Tuesday by several senators.
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