Huge fight looms over raising taxes
S E E D E D C O N T E N T
Washington is gearing up for a battle over raising taxes as President Biden looks for a way to pay for his agenda while Republicans are planning to dig in their heels ahead of the 2022 elections.
Biden last week signed a $1.9 trillion coronavirus relief package that was mostly deficit-financed. The White House and congressional Democrats are now turning their attention to another economic recovery package, possibly focused on infrastructure, jobs and climate change. A key question will include if and how to pay for such a proposal.
Biden proposed a slew of tax increases during his presidential campaign that are expected to be on the table as part of the discussions. But they will face fierce opposition from Republicans and business groups, jeopardizing any attempt to pass an economic package on a bipartisan basis.
White House press secretary Jen Psaki said Monday that there isn't a proposed package yet and also noted that Biden is committed to his campaign pledge to not raise taxes on people making under $400,000 annually. She said that the president's focus on taxes is ensuring that wealthy people and corporations pay their "fair share."
"That remains his overarching approach, but there isn't a package yet where we're talking about pay-fors yet," she said. "I expect we can have more conversations about that down the road."
Biden has said that he wants to follow up his relief package with legislation aimed at improving the economy so that it is in a stronger position than it was prior to the coronavirus-related downturn.
The president said in January that he was willing to increase the deficit substantially for his relief package, but also pointed out he wanted to pay for "permanent investments" by raising taxes on wealthy people and corporations.
Biden's campaign tax proposals included raising the corporate tax rate from 21 percent to 28 percent, as well as raising the top individual income tax rate and the capital gains tax rate for high-income taxpayers. Bloomberg News reported Monday that these and other Biden campaign proposals are being considered by the White House as ways to help pay for an economic recovery plan.
It's unclear exactly what spending will be included in the next economic package, though infrastructure spending is expected to be a main component. It's also unclear what procedures Democrats will use to move the legislation through Congress.
Democrats used the budget reconciliation process to pass the coronavirus relief package, and the measure received no Republican votes. Yet, some Democrats are hoping to pursue an infrastructure and jobs bill on a bipartisan basis.
"Building on the popularity of the American Rescue Plan, it is my sincere hope that our Republican colleagues will join us at the negotiating table, so together, we can deliver a package that benefits all our constituents," House Ways and Means Committee Chairman Richard Neal said in a statement Friday.
Sen. Ben Cardin said in comments caught on a "hot mic" Monday at an event with Transportation Secretary Pete Buttigieg that most likely an infrastructure package would have to move through Congress via budget reconciliation, which would mean it could pass the Senate with a simple majority vote.
Senate Democrats in 2018 proposed rolling back former President Trump 2017 tax cuts to pay for an infrastructure plan.
Tax increases face stiff opposition from Republicans, which means that Democrats would have to pursue an infrastructure bill on their own if they wanted to pay for it that way. One of the major provisions in the 2017 tax law championed by Republicans was a reduction in the corporate tax rate from 35 percent to 21 percent.
"In the next package, we're going to see real serious tax increases on the corporate side, certainly which will drive us to the least competitive tax rate in the world," Rep. Kevin Brady (Texas), the top Republican on the House Ways and Means Committee, said on CNBC on Monday.
The tax increases would "have an impact on the economy, jobs and wages," Brady added.
Anti-tax advocate Grover Norquist, the president of Americans for Tax Reform, predicted that "there will be no Republican votes for the president's tax increases."
Norquist argued that Biden's campaign tax proposals could hurt people's 401(k) retirement accounts, which could be a political problem for Democrats.
"You can't talk to suburban moms and dads by raising their taxes and raising taxes on the companies they invest in," he said.
The business community, which lobbied for Trump's business tax cuts, is also expected to push back against rolling back those tax cuts to pay for an infrastructure bill.
Ed Mortimer, vice president of transportation and infrastructure at the U.S. Chamber of Commerce, said it would be ideal for an infrastructure bill to be bipartisan, and the opportunity for bipartisanship is lost if Democrats seek to pay for new spending by undoing Trump's tax cuts.
"There are a lot of ways to pay for infrastructure without doing it," he said.
The Chamber has long been supportive of raising the federal gas tax, and also supports incentives to encourage supplemental private investment in infrastructure. However, the Biden administration has said it doesn't support a gas tax increase. Some Republicans have expressed interest in transitioning from fuel taxes to a vehicle miles traveled fee to fund infrastructure, but such a fee is unlikely to be implemented on a broad basis in the short term.
If Democrats pursue an infrastructure package on a partisan basis, they will need every Senate Democrat and almost every House Democrat to support the bill. That could be a challenge, because some centrist Democrats have expressed reservations about raising taxes during an economic downturn.
However, some key Democrats have pushed back on Republicans' criticisms about raising taxes on the wealthy and corporations to pay for infrastructure.
"Billionaires and mega-corporations have never done better, and ensuring they pay their fair share is critical to funding long-overdue investments in rebuilding our roads and bridges and transitioning to a carbon-free future," Senate Finance Committee Chairman Ron Wyden said Monday in a statement to The Hill.
Treasury Secretary Janet Yellen said in written responses following her confirmation hearing in January that the investments in infrastructure and worker training that Biden wants to pair a corporate tax increase that "would benefit American businesses of all stripes and improve our international competitiveness."
Yellen is also working with other countries in the Organization for Economic Cooperation and Development to reach a deal on a global minimum tax for corporations, which she thinks would help to keep U.S. businesses globally competitive.
Progressives argue that paying for infrastructure through tax increases on the wealthy and corporations would be smart politics, pointing to polling that shows that the public favors these types of tax hikes.
"If Biden were to put forward a major investment package that was financed by taxing the wealthy and corporations, there's a good chance it would have as much popular support as his pandemic relief proposal," said Frank Clemente of Americans for Tax Fairness, which is a left-leaning advocacy group.
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It will be interesting to watch. Not just the partisan fighting over any tax bill, but longer term for the consequences that it brings.
I remember reading prior to Covid impacting the economy that the Trump tax cuts did generate more revenue for the federal government in taxes collected. During that same time we also had record unemployment for all groups and faster pay increases than have been seen in many years. That's all tied in with the tax cuts. Did the wealthy benefit to a greater degree on tax cuts? Of course, but then you can also say that the wealthy normally pay more in dollar amounts in taxes to the federal government also. So what will the impact be both short-term as well as long-term for a tax increase...
I'm sure that makes the people who are struggling to put food on the table feel soooooooooooooooooo much better.
Your comment has nothing to do with mine. It only stands to reason, if taxes are cut by a percentage, then the more one pays in taxes the larger in dollar amount the cut will be.
You want to discuss what I actually wrote I'm here and willing. You want to twist something for a partisan issue then go bother someone else.
That is only part of it however. Tax loopholes are created that target the wealthy (i.e. tax deductions for purchasing private jets, capital gains, etc.)
More Special Interest Breaks and Loopholes Under the New Tax Law
yes that is very true. That is why I firmly believe that any tax bill must be partisan and must always have plenty of time for full review. Neither party, if given the opportunity, will pass a bill without catering to their political interests. While I benefited from the 2017 tax bill, I would rather they had worked on debt reduction. The 2017 tax bill was pushed thru by the Republican party because they had the numbers to do it without any assistance from the Democrats by using reconciliation which is why parts of the bill (that mostly benefit the less wealthy) expires after 10 years.
I really wish there was some way to get rid of the partisan problems we have and get Congress to work for the people rather than their own interests...
There are also tax breaks designed for the lower classes.
EITC is one such HUGE program.
Basically welfare.
So obviously you didn't read the linked article.
Obviously you have no clue whatsoever what I read.
The Democrats seem to think that their imaginary money well, will never go dry.... that there will a never ending supply of that precious green stuff. They seem to forget that they can only go to that well a finite number of times before it runs dry. And who will decide what amounts to a "fair share". We've been hearing this propaganda from the left, like, forever.
Tax rate increases will simply end up bringing in less overall revenue. There is also a finite handful of the so called rich to tax, before they would have to dip down to the less well off to fulfill their pipedreams. And any increases in corporate taxes will simply be passed on down the line to the ultimate consumer, and eventually to the poor. It would be coming in the midst of the Covid caused recession, at the very worse time when so many businesses are struggling to survive. It all looks good on paper and in the fantasy filled minds of the libs, but in reality it just doesn't work.
Seriously ?
Democrats used the budget reconciliation process to pass the coronavirus relief package, and the measure received no Republican votes. Yet, some Democrats are hoping to pursue an infrastructure and jobs bill on a bipartisan basis. Seriously ?
"Building on the popularity of the American Rescue Plan, it is my sincere hope that our Republican colleagues will join us at the negotiating table, so together, we can deliver a package that benefits all our constituents," House Ways and Means Committee Chairman Richard Neal said in a statement Friday. Seriously ?
Anti-tax advocate Grover Norquist, the president of Americans for Tax Reform, predicted that "there will be no Republican votes for the president's tax increases."
The business community, which lobbied for Trump's business tax cuts, is also expected to push back against rolling back those tax cuts to pay for an infrastructure bill.
Ed Mortimer, vice president of transportation and infrastructure at the U.S. Chamber of Commerce, said it would be ideal for an infrastructure bill to be bipartisan, and the opportunity for bipartisanship is lost if Democrats seek to pay for new spending by undoing Trump's tax cuts.
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LMAO
Sorry America, Biden has already thrown bipartonship out the window for HIS relief bill, setting the tone for his presidency. Now its still an uphill fight for every damn thing.
Cooperation, compromise, unity, progress, bipartonship .... Not on our lifes.
Fight Fight Fight .... DUuuuu
SERIOUSLY!!!!!!!!!!!!!!!!!!!!!!!!!!!
BECAUSE THE republicans REFUSED TO VOTE FOR SOMETHING THAT WOULD HELP THE MAJORITY OF AMERICA.
75% OF US WERE FOR IT.
Why weren't you?
The main reason ? Because one man wanted that number.
To Hell with everyone else's wants including the other people in government that didn't want that big and all inclusive of a bill.
Setting the tone of politics for the next presidency. A tone of more fighting and no cooperating.
Sad
I look at the big long term picture. Infighting in our government has reached a unhealthy level. Biden called for unity, as soon as he had the power he balked and the dems got all they wanted. Remember Tessylo NO Republicans voted for this huge relieve bill.. NONE.
A totally one sided huge spending bill, think that didn't cause friction ? Yep of course it did. Do you not think Biden is smart enough to understand this ?
I Think he understands it but doesn't care. He got what he wanted. Now there is a political price to pay. Always has been in these kind of dealings.
IF WE/He would have started with a compromised deal that would have also set the tone for the next presidency.
Biden promised more unity, surely HE knew that would not be easy and HE would have to deal with Both Dems and Reps to fulfill that goal/promise.
I guess he forgot.. or it was just easier to go with a one sided deal and that way HE did get what HE wanted. Either way we still Fight Fight Fight
IF the relief bill had been biparton Both sides would benefit or take blame now its all on the dems. And you can bet the reps will do all they can to make this a huge bipartisan issue till Bidens is gone.
Gotta go do some running, Later, Tessylo Have a good day.
Not true.
Yes, it is.
YES I REMEMBER. THEY REFUSED TO HELP THE MAJORITY OF THE AMERICAN PEOPLE - 75% OF WHO WERE FOR IT.
THE REPUBLICANS WON'T NEGOTIATE/COMPROMISE/GIVE WITH A PRESIDENT WHO IS A DEMOCRAT. WHEN WILL YOU EVER GET THAT THROUGH YOUR HEAD?
Because they only looked at the $$$$ both the $1400 and the extra $300 per week UE benefits. You do realize, but you probably don't, that only about 85% of the 1.9T actually went to Covid relief and actual Covid related things right? $285B (yes that's 285 BILLION dollars of unrelated crap. THAT's why they put up a stink. Had the dumbasses done what the former occupant of the WH (hehehe) wanted and sent stand alone, directed bills to the Congress and then the POTUS to sign, there wouldn't have been the blowback.
I wasn't talking to you.
President Biden on Sunday invited a group of Republican senators to meet with him at the White House early this week after they proposed a more targeted economic relief package, but the administration gave no indication it is ready to budge from its original $1.9 trillion proposal.
"As has been widely reported, the President received a letter today from 10 Republican Senators asking to meet with him to discuss their ideas about the actions needed to address these crises," White House press secretary Jen Psaki said in a statement. "In response, the President spoke to Senator Collins, and invited her and other signers of the letter to come to the White House early this week for a full exchange of views."
Ten Senate Republicans, led by Sen. Susan Collins (R-Maine), proposed their own framework earlier Sunday for a COVID-19 relief package. Sen. Bill Cassidy (R-La.), another senator involved in the effort, said on "Fox News Sunday" that the outline of the GOP package would total $600 billion and include direct payments of $1,000.
thehill.com/homenews/administration/536705-biden-invites-gop-senators-to-white-house-for-relief-talks
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Biden, Republicans Hold ‘Frank’ Relief Talks But Reach No Deal
The two sides agree on funding vaccination and testing efforts, but that's where accord ends. The White House says it will not let needed financial aid for Americans get bogged down in drawn-out negotiations.
.org/morning-breakout/biden-republicans-hold-frank-relief-talks-but-reach-no-deal/
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Biden meets Republicans on virus aid, but no quick deal
President Joe Biden has told Republican senators he's unwilling to settle on too small a COVID aid package after meeting for two hours over their slimmed down proposal
s://abcnews.go.com/Health/wireStory/biden-meet-gop-lawmakers-discuss-virus-relief-75604872
What are you trying to prove here? The republicans will meet with President Biden but they will not, mark my words, in the end, support anything he proposes, no infrastructure deals, no nothing.
And who's fault is that really ? The republicans offered a deal Biden said He would not negotiate.
2 trillion ... 600 billion
Well what about 1.2 trillion
Na ... 2 trillion
Tessylo do you really expect that especially with the attitude Biden has taken that the republicans are more or less willing to compromise.
No I get it you seem to believe that republicans just will never compromise again. Your opinion, Personally I think many were ready to.
And if all had I still believe we the people would be better off. This one bill was just the start of the next 4 years. Now we fight. (As usual) Sad ! O-well.
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2016: 21st Century Cures Act
The debate regarding health care legislation remains a combative issue across the United States. Yet, a sweeping bipartisan agreement occurred around the 21st Century Cures Act, signed into law on December 13, 2016. The bill easily passed both chambers of Congress due to the bipartisan initiatives that were included in it.
2015: Every Student Succeeds Act
In December 2015, the Every Student Succeeds Act (ESSA) was enacted and replaced the No Child Left Behind Act. The legislation was passed by both the House and the Senate with bipartisan support.
2013: Bipartisan Budget Act of 2013
Two years after reaching a bipartisan agreement on the debt ceiling, Congress announced a two-year budget agreement prior to the budget conference in December.
truth
"And who's fault is that really?"
That's just dumb, makes no sense.
"No I get it you seem to believe that republicans just will never compromise again. Your opinion, Personally I think many were ready to."
I don't seem to believe anything. I know it. NEVER GONNA HAPPEN
I'm not going around and around on this any more with you.
The republicans will meet with President Biden but they will not, mark my words, in the end, support anything he proposes, no infrastructure deals, no nothing.
That's all I'm going to say on the matter.
I'm done.
You're not proving any 'truth' here Steve - that's silly.
Seems we agree that there will be little to no end cooperation within the parties but disagree on the hows and whys.
The truth I proved is not as you put it silly, it's a fact that in the past we have had both parties that worked together in our government and it is possible that we could have that again.
You are also correct that until and if both sides Want To work together it will not happen and at this time it doesn't seem as if WE the people expect our elected officials to even try.
So yes You are right, republicans will quite likely not be working with Biden.
That's not much of a surprise.
Especially starting out with this new relief bill being so one sided.