Democratic Sen. Joe Manchin of West Virginia reportedly opposed two pieces of his party’s spending package as negotiations over its price tag and reach continue to stall.
Democratic Sen. Joe Manchin of West Virginia’s opposition reportedly relates to the Democrats’ climate change and child tax credit provisions of the budget proposal. While the majority of his party lauded both programs, the 50-50 Senate means that any one Democratic senator could tank the bill, giving Manchin veto-like power while representing a rural, coal-producing state that voted for former President Donald Trump by almost 40 points in 2020.
Multiple reports surfaced Friday suggesting that the Clean Electricity Payment Program would likely be scrapped from the bill due to Manchin’s objections, part of Democrats’ attempt to fight climate change. Those backing the program, which would provide incentives for clean energy use while implementing fines and penalties for organizations continuing to rely on fossil fuels, see it as a fundamental piece of the Democrats’ agenda and key to reaching President Joe Biden’s goal of reducing U.S. emissions by 50% of what they were in 2005 by 2030.
As congressional Democrats push a $3.5 trillion social spending package, everyone is wondering: “How are we going to pay for that?” To President Joe Biden, the answer is simple: raise taxes.
Included in Biden’s proposed tax plans — erroneously named the American Families Plan — are hikes in personal income tax and capital gains tax rates. The plan would raise the top marginal income tax rate from 37 percent to 39.6 percent and reclassify long-term capital gains and qualified dividends as ordinary income for those with taxable income above $1 million, resulting in a top marginal tax rate of 43.4 percent, according to the Tax Foundation.
Despite the frustration (or excitement) that Americans have towards Biden’s income and wealth tax proposals in the midst of an economic recovery, Americans should be paying closer attention to his other proposals, the American Jobs Plan and the Made in America Tax Plan.
Washington Democrats’ efforts to pass their signature, $3.5 trillion spending package is in jeopardy of falling apart, as House Speaker Nancy Pelosi, leader of the Democrat-controlled chamber, does not appear to have the votes this week to advance the measure awaiting in the Senate.
The votes are set to be cast Monday and Tuesday, with House members returning for two days during their August recess to try to move forward the pending package.
Pelosi can afford to lose only three votes in the narrowly divided chamber. However, nine moderate Democrats have vowed to oppose the two voting measures until the House passes a roughly $1 trillion, bipartisan infrastructure spend package passed in the Senate before the recess.