WASHINGTON (NewsNation Now) – President Joe Biden will travel to Capitol Hill early Thursday to push forward his revised home policy bill and related bipartisan infrastructure plan with House Democrats split after days of protracted negotiations over its ambitious social and climate policies and how to pay for them.
Biden will then make remarks from the White House, a possible signal that a deal could be within reach after a failed paid family leave proposal and the removal of a billionaire tax to convince pivotal senators of the Senate 50-50. NewsNation will stream Biden’s remarks live in the player above.
The president wanted to announce at least part of a deal before leaving later Thursday for world summits.
Democrats’ disputes over the Big Home Policy bill have delayed passage of a separate $ 1 trillion package of road, broadband and other infrastructure projects that have cleared the Senate with support bipartite. Progressive House Democrats want to see the fine print of the big house bill before they vote on the infrastructure measure.
The national measure of $ 3.5 trillion fell to about $ 1.75 billion as negotiations progressed. Also in the mix: expanded health care programs, free pre-kindergarten and some $ 500 billion to fight climate change.
And Democrats are considering a new surtax on the rich – 5% on income over $ 10 million and an additional 3% on those over $ 25 million – to help pay, according to a person who insisted on anonymity for discuss private interviews.
The billionaires’ tax proposal was designed to win over another Democratic opponent, Senator Kyrsten Sinema of Arizona, but West Virginia Senator Joe Manchin called it unfairly targeting the wealthy, leaving Democrats at odds.
“The people in the stratosphere, rather than trying to penalize, we should rejoice that this country is able to produce wealth,” Manchin told reporters.
Manchin has said he prefers a flat-rate “patriotic tax” of at least 15% to ensure that the richest Americans do not refrain from paying taxes. Nonetheless, he said, “We have to move forward. “
The following fall was a draft paid family leave program that was already being cut from 12 to four weeks to satisfy Manchin. But with his objections, he was unlikely to be included in the bill, the person said.
In the equally divided Senate, Biden needs the support of all the voiceless Democrats to spare.
A Sunday deadline loomed for approval of a bipartisan bill on road and bridge infrastructure or risk allowing funds for routine transportation programs to expire.
Despite a series of delays, Democrats were unable to strike the deal between themselves and Republicans overwhelmingly oppose the package. At best, Democrats could potentially reach a cadre who could send Biden overseas with a deal in hand and unlock the process while the final details were worked out.
“I wish they would negotiate with Republicans in the House,” Rep. Steve Scalise, R-La., Said on “Fox News Sunday” last week.
“They just have an insatiable appetite for raising taxes and spending more money. It would kill jobs, it would hit middle class families… It makes absolutely no sense, ”he said.
Democrats were hoping that the billionaire tax unveiling on Wednesday might help solve the revenue side of the equation after Sinema rejected the party’s earlier idea to reverse Trump-era tax breaks on businesses and the rich, those who earn more than $ 400,000.
The new billionaires’ proposal would tax the earnings of those with more than $ 1 billion in assets or incomes of more than $ 100 million over three consecutive years – less than 800 people – forcing them to pay taxes on them. gains of stocks and other marketable assets, rather than waiting for the holdings to be sold.
Democrats have said it could generate $ 200 billion in revenue that could help fund Biden’s 10-year program. Republicans ridiculed the billionaire tax as “insane” and some suggested it would face a legal challenge.
More likely in the mix was the accompanying proposal, a new 15% minimum corporate tax, as well as the proposed new surtax on income above $ 10 million.
Together, they’re designed to meet Biden’s desire that the rich and big business pay their “fair share.” They also match his promise that no new taxes hit those who earn less than $ 400,000 a year, or $ 450,000 for couples. Biden wants his package paid for in full without going into debt.
Among Democrats, Representative Richard Neal of Massachusetts, chairman of the Ways and Means Committee, said he told Wyden that the billionaire tax could be difficult to implement. Despite Sinema’s opposition, he expects Democrats to stick to the approach taken by his panel of simply raising rates for businesses and the wealthy, reversing the 2017 tax cuts.
“There is a lot of angst in there about the billionaire tax,” Neal said.
Under the House bill approved by Neal’s panel, the top tax rate would drop from 37% to 39.6% for those earning more than $ 400,000 per year, or $ 450,000 for couples. The corporate rate would drop from 21% to 26.5%.
The House bill also proposes a 3% surtax on the richest Americans with adjusted income above $ 5 million a year, and Neal has suggested that this could be increased to $ 10 million to defeat the recalcitrant.
Opposition from the two senators is forcing difficult cuts, if not outright elimination, of political priorities – from child care assistance to dental, vision and hearing benefits for the elderly.
The Associated Press contributed to this report.
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