Sunday, September 26, 2021

White House, Democrats embroiled in Biden bid to increase tax

WASHINGTON — President Joe Biden has a simple message for fellow Democrats about his plan to raise taxes to remake large parts of the American economy: Look beyond the bottom line.

Biden is trying to persuade Democrats to adopt a more emotive argument, namely that the plan is fair, that it raises taxes on those who can pay more and spends money on programs targeting children and the middle class. We do.

The president has proposed a more than $3 trillion revenue increase primarily through higher taxes for corporations and the nation’s richest families, as well as greater IRS enforcement that would target the wealthy. But key lawmakers this past week expressed doubts about the size and potential impacts on the economy as congressional committees considered the measures and a wide range of business groups sifted through the details to highlight their opposition.

Interviews with three administration officials show that the White House is comfortable settling for a lower price as part of the negotiating process, as long as the end result is the creation of a tax system that voters view as fair. Officials, who were not authorized to publicly discuss the ongoing talks and spoke on condition of anonymity, said Democrats are united on this front.

If the playbook on attracting voters sounds familiar, it was the same strategy Biden used earlier this year to bolster a bipartisan infrastructure deal.

“It’s a common thing that people agree with,” said White House deputy communications director Kate Berner. “They do not understand why companies can collect profits abroad and not pay any money in taxes. They don’t understand why the hedge fund manager pays a lower tax rate than PipeFitter. It’s something that people think is fundamentally broken.”

But in a sign of uncertainty, the administration has also been publicly silent about how little Biden is willing to go to pare down the package. The administration also finds itself grappling with interest groups that the White House sees as deliberately misrepresenting its tax plans in hopes of wiping support. Officials say claims of job losses by the US Chamber of Commerce and other groups are exaggerated and fail to consider investments in family leave, children, child care, health care and the environment they believe. That it will help the economy.

The president outlined his tax plans in his budget proposal, setting a baseline for congressional committees. But some Democratic lawmakers, including West Virginia Senator Joe Manchin, have already objected to increasing spending and taxes. Manchin quickly raised concerns about Biden’s proposal to raise the corporate income tax rate from 21% to 28%.

“If you’re going to be a leader in the world and a world superpower, you better have a competitive tax rate, period,” he said.

While Munchkin and Sen. Kirsten Cinema, D-Ariz., both voted for a budget blueprint that would allow Democrats to design a package of social programs, they have made it clear that they are looking at the proposed $3.5 trillion over 10 years. Will not support topline spending figures. .

“Establishing an artificial $3.5 trillion spending number and then reverse-engineering the partisan social preferences that should be funded is not how you make good policy,” Manchin wrote in The Wall Street Journal.

White House, Democrats embroiled in Biden bid to increase tax
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