These changes are coming as Biden appeals more to the American public, such as in a Thursday night televised townhall. He spoke out for the values of the middle-class at , the core of his proposal. Democratic leaders show great respect for Biden’s preference to quickly wrap up negotiations and reach an agreement in the tightly held Congress, as long-sought programs get adjusted or removed.
Top Democrats are open to a new White House proposal that abandons plans for reverse Trump-era tax rates in favor of an approach that would tax billionaires’ investment incomes to finance the deal. Negotiations are expected to be completed by the week’s end, with some leaders racing to complete them.
The White House and Democratic leaders have been in talks to try to lower the $3.5 trillion package to $2 trillion. This would be an unprecedented federal effort to expand social services to millions of people and address climate change.
Biden faces a stark Republican opposition with no Democratic votes spared. He must ensure that all members of his party, centrists as well as progressives, are aligned.
The White House abruptly changed its course late Wednesday, when it proposed new ways to finance parts of the proposal. It halted a long-planned rise in corporate and top income taxes rates, but added others, including a tax based on the investment gains for the most wealthy Americans.
Biden is facing resistance from key holdouts, including Sen. Kyrsten Sinema (D-Ariz a>), who is not on board with her party’s plan to repeal President Donald Trump’s tax cuts for large corporations and individuals making more than $400,000 per year, has been opposed by the party.
However, the new tax provisions are likely to upset progressives and some moderate Democrats. They have long campaigned for the repeal of the Republican-backed 2017 tax cut that many believe unduly rewards the wealthy and costs the government enormous amounts in lost revenue during a time when there is a widening income gap. Many are angry that a single senator could hinder this goal.
