Biden Tax Plan Gets Tossed Into Shredder in Hunt for New Revenue

Asia's Tech News Daily

(Bloomberg) — President Joe Biden’s tax agenda, crafted by experts who worked on the proposals for years and wrote books about their ideas, is getting a wholesale revamp as Democrats battle to find a program their caucus can unite behind.

Most Read from Bloomberg

  • A Deep Dive Into Squid Game’s World of Inequality
  • Meet Six People Fighting Water Scarcity Across the Globe
  • Hamburg Is at the Heart of Germany’s Growing Dilemma Over China
  • The Terrifying Rise of Haunted Tourism

Amid diplomatic — at least in public — bickering among the chairs of the House and Senate’s top tax-writing committees and other stakeholders, the main takeaways as of Thursday morning are: the bulk of former President Donald Trump’s 2017 tax cuts will be left in place, while corporations will face a new minimum levy and multi-millionaires get a new income surtax.

It’s still unclear what measures will make the final cut as lawmakers negotiate over the revenue-raisers to pay for a $1.75 trillion social-spending bill, but the White House Thursday morning released a fact sheet including expected components.

The fact sheet, along with comments from lawmakers this week, indicate that some of Biden’s core proposals — including increasing the corporate income tax rate, the top marginal income tax rate and the capital gains rate — are likely out, while other, more creative ideas, –like a minimum tax on the profits on corporate financial statements and a surtax on millionaires — are taking their place.

Likely InLikely OutDefinitely Out









15% corporate minimum “book” tax Billionaires tax Eliminating step-up in basis on inherited assets
15% global minimum corporate tax IRS bank-account reporting
Expansion of 3.8% investment tax Eliminating carried interest
IRS audit expansion Corporate rate hike
Tightening of international corporate tax rules Higher top individual rate
Limitation of business losses Capital gains rate hike
Surtax on millionaires Estate-tax expansion
Levy on corporate stock buybacks

Senator Kyrsten Sinema of Arizona, a crucial swing vote for Democrats, has given the Biden administration a list of specific tax policies she will support in order to raise revenue for the social spending plan, people familiar with the matter said Wednesday night. 

Biden Tax Plan Gets Tossed Into Shredder in Hunt for New Revenue
© Bloomberg Democrats Detail Billionaire Tax To Fund White House Spending Plan

She would back the billionaires’ tax put forth by Senate Finance Committee Chairman Ron Wyden or a 3% income surcharge for earners above $5 million, as well as a 15% corporate minimum tax, the people said on condition of anonymity to discuss sensitive negotiations.  

Some Democrats are frustrated their once-in-who-knows-how-long chance to make the tax code more progressive will, at best, be incomplete. What was originally envisioned — and could still result — was the first major comprehensive package of tax increases since 1993, the first year of the Clinton administration. With razor thin majorities in the House and Senate, there’s no telling whether Democrats will be able to come back for more after the 2022 midterm elections.

“It seems to be almost every sensible progressive revenue option that the president wants, that the American people want, that I want seems to be sabotaged,” said Sanders, a Vermont independent who caucuses with the Democrats.

Biden Tax Plan Gets Tossed Into Shredder in Hunt for New Revenue
© Bloomberg Democrats Detail Billionaire Tax To Fund White House Spending Plan

The last-minute rewrite of the tax plan is the result of Democrats scrounging for tax options to appeal to two holdout Democrats, Sinema and Senators Joe Manchin of West Virginia. Sinema’s opposition to tax-rate increases and Manchin’s resistance toward a plan to require banks to report more tax data to the Internal Revenue Service may mean that Democrats will have throw out some of Biden’s ideas that raise the most tax revenue.

House Ways and Means Chairman Richard Neal said that the bill would have to “mollify” the demands of those two senators to make it through Congress. The eleventh-hour deal-making reflects the need for the caucus to stay united in face of concerted Republican opposition.

Democrats are also likely to abandon Biden’s ambitious proposal to expand inheritance levies, by removing a benefit that allows some assets to be passed to heirs tax-free, known as step-up in basis.

Scaling back presidential proposals is part of the typical legislative process in Washington. The executive branch proposes its grand vision, and then 535 members of Congress get to debate and revise that plan. 

Yet Biden’s tax agenda has taken an unconventional path as lawmakers have picked some pieces and rejected others.

Some of the tax increases seen by many Democrats as politically the easiest — reversing the Trump tax cuts on corporations and individuals, as well as eliminating the carried interest tax break for private equity — are now candidates to get dropped. And some of the more complicated approaches — like Biden’s plan for a corporate minimum levy on profits reported on financial accounts — have the support of all 50 Senators.

White House Press Secretary Jen Psaki said at a briefing Wednesday that “the president certainly knows there’s some agreements and some disagreements about which components of a range of tax-fairness proposals are the best options. That’s why there are so many out there that he has proposed, that others have proposed, that what we’re doing now is working through what will be in the final package.”  

Lisa Zarlenga, a former Treasury tax legislative counsel, still estimates that the Biden administration has managed to get quite a few of its proposals — at least in part — into the legislation being considered, when compared with previous presidents.

An expansion of the net investment income tax — a capital gains surtax on high-earners — is still in the mix, and Congress has kept most of Biden’s plans to overhaul the international tax system in tact, with some minor changes, she pointed out.

‘A Pretty Good Percentage’

“It’s actually probably a pretty good percentage,” Zarlenga said.

But for many progressives, the tax increases weren’t just about finding dollars to fund new social spending, they were also about addressing wealth and income inequality. Besides the spending elements of the bill, the legislation was a chance to reshape the tax code to shift more of the burden on the wealthiest Americans — who have many options to reduce or defer their tax bills.

“The lack of inclusion of both the corporate rate and the individual rate and the failure to include the capital gains rate — that’s a big loss,” said Frank Clemente, the executive director of Americans for Tax Fairness. “We will come back another day.”

(Updates with White House fact sheet released Thursday.)

Most Read from Bloomberg Businessweek

  • Workers Press for Power in Rare Advance for U.S. Labor Movement
  • Australia Braces for Life After Covid Zero
  • You Could Be Competing With Bots to Buy Gifts This Christmas
  • Big Teacher Is Watching: How AI Spyware Took Over Schools
  • Colombia’s Rain Shaman Got Paid to Stop the Storms, Until He Couldn’t

©2021 Bloomberg L.P.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Army-Navy at Meadowlands, with 20th anniversary of 9-11

© Provided by Associated Press Navy head coach Ken Niumatalolo watches against Notre Dame in the first half of an NCAA college football game in South Bend, Ind., Saturday, Nov. ... Read more »

Northern Ireland's Array Collective win UK Turner Prize

© Paul ELLIS An assistant walks through a piece by Belfast-based Array Collective, winner of the Turner Prize Array Collective, 11 Northern Ireland-based artists, won Britain’s prestigious Turner Prize on ... Read more »

Teenager arrested over death of 16-year-old schoolgirl

Police investigating the death of a 16-year-old girl whose body was found in a park have arrested a 19-year-old man. Amber Gibson left her home in the Hillhouse area of ... Read more »

N Ireland collective wins prestigious Turner Prize for art

LONDON (AP) — An 11-person collective from Belfast that aims to transcend Northern Ireland’s political and religious divides won the U.K.’s prestigious Turner Prize for art on Wednesday. The Array ... Read more »

‘A sad situation': Man suspected of shooting girlfriend, 2 children, found dead in KCK

The man suspected of shooting his girlfriend and two children Wednesday in Kansas City, Kansas, allegedly told a friend that he had killed his girlfriend and was going take his ... Read more »

Semiconductor ecosystem: Are all the chips in place for a revolution?

© Provided by The Financial Express Balajee Sowrirajan, MD, Samsung Semiconductor India R&D Center EFE By Srinath Srinivasan With NEWS ABOUT the Tata Group planning investments of up to $300 ... Read more »

Fall Peng Shuai: WTA zieht sämtliche Turniere aus China und Hong Kong zurück

© Yong Teck Lim/ WTA-Boss Steve Simon zieht das Frauentennis aus China ab. Der Tennis-Weltverband der Frauen (WTA) macht seine Drohung ernst und streicht per sofort alle Turniere in China ... Read more »

Amelia Hamlin 'is doing great' after Scott Disick split

© Bang Showbiz Amelia Hamlin is currently single Amelia Hamlin is “doing great” following her split from Scott Disick. The 20-year-old star and Scott, 38, called time on their romance ... Read more »

SJVN looks to set up more renewable power projects in UP

© Provided by Zee Business State-owned power producer SJVN on Wednesday urged the Uttar Pradesh government to allot the company more renewable power projects in the state, after bagging the ... Read more »

FAI pegs fertilisers subsidy to record Rs 1.4 lakh crore in FY'22 on rise in global prices

© Provided by Zee Business The government’s fertiliser subsidy is likely to rise to an all-time high of around Rs 1.4 lakh crore during this fiscal year on high international ... Read more »

HP Envy 14: It's smart, stylish and extremely fast

© Provided by The Financial Express Some of the security features that HP Envy 14 offers include a physical, digitally controlled camera shutters that allow users to turn their cameras ... Read more »

Michigan school shooting suspect charged with terrorism, murder as fourth victim dies

A 17-year-old student is the fourth victim to die in a shooting at Oxford High School in Michigan as murder charges were announced against the teenage suspect. The suspected shooter, ... Read more »

Elizabeth Holmes testified that her ex-boyfriend and former Theranos COO emotionally and physically abused her

Former Theranos CEO Elizabeth Holmes and former Theranos COO Ramesh “Sunny” Balwani.Yichuan Cao/NurPhoto via Getty Images (Holmes). Justin Sullivan/Getty Images (Balwani) Elizabeth Holmes testified that her ex-boyfriend, Ramesh Balwani, was ... Read more »

Suspect in Michigan shooting charged with terrorism and first-degree murder

Oxford High School. Scott Olson/Getty Images The 15-year-old suspect in the shooting at Oxford High School in Detroit, Mich., is being charged as an adult with four counts of first-degree ... Read more »

Ministers postponed announcement of fares increase after backlash to rail plan

Photograph: PA Images/Alamy Exclusive: news of 3.8% rise delayed over reaction to downgraded rail investment in the north, leak shows An announcement that rail fares will rise by 3.8% in ... Read more »

HBO was ‘concerned' about ‘Sopranos' star James Gandolfini ‘staying alive'

Actor James Gandolfini in a scene from HBO’s TV series “The Sopranos.” Getty Images A new tell-all book about what went down behind the scenes at HBO is shedding some ... Read more »

‘I didn't pull the trigger': Weepy Alec Baldwin gives first interview since ‘Rust' tragedy

Alec Baldwin is insisting he “didn’t pull the trigger” on the gun that killed a cinematographer and wounded his director on the New Mexico set of his “Rust” film. In ... Read more »

Man recovering from cardiac surgery wins $1 million with ‘heart' scratch-off

Alexander McLeish of Attleborough who won a $1 million prize in the Massachusetts State Lottery. Massachusetts State Lottery/Newsflash Sometimes it pays to have a friend with a kind heart. A ... Read more »

Nine inmates escape after gang rams vehicles into Mexican prison

© Ginnette Riquelme Forensic investigators work an area where a burned-out car was found after a gang rammed several vehicles into a prison and escaped with nine inmates, in Tula, ... Read more »

All The Movies And Shows Leaving Netflix In December 2021

© Provided by CinemaBlend Jack and Rose in Titanic Throughout the month of December, a number of movies and TV shows will be leaving Netflix. Among the popular titles set ... Read more »

Sheriff: Boy's parents called to Oxford High before violence

OXFORD TOWNSHIP, Mich. (AP) — A 15-year-old boy was charged Wednesday with murder, terrorism and other crimes for a shooting that killed four fellow students and injured others at a ... Read more »

Big tech's first generation of founders starts to step aside

Massive tech companies like Google, Amazon, Netflix, and more have had a huge impact on the way we live our lives, and have had incredible levels of financial success. Another ... Read more »

Workers at Canadian beef plant to vote on Cargill offer ahead of strike date

By Rod Nickel © Reuters/Todd Korol The Cargill meat-packing plant in High River (Reuters) – Workers at Cargill Inc’s beef-processing plant in High River, Alberta, one of Canada’s largest, will ... Read more »

Stacey Abrams launches 2nd campaign for Georgia governor

ATLANTA (AP) — Stacey Abrams, the Georgia Democrat and leading voting rights activist, said Wednesday that she will launch another campaign to become the nation’s first Black woman governor. © ... Read more »

Australia politics live update: Porter and Hunt to depart as parliament sits for final day of the year

© Photograph: Lukas Coch/AAP Former attorney general Christian Porter has announced he won’t contest the next federal election. LIVE – Updated at 20:47 Follow all the day’s news.   20:47 ... Read more »

Cringeworthy video shows ‘MAGA rioter' sobbing when police asked about Trump

© (Twitter/ Scott MacFarlane) MAGA U.S Capitol rioter starts sobbing when grilled by police A new viral video is making just about everyone cringe. In the clip, an emotional alleged ... Read more »

Is a GoPro subscription worth it?

© Provided by T3 GoPro subscription Many years ago buying a GoPro was a simple matter of scraping together enough cash, picking your model and clicking the ‘buy’ button. Sure, ... Read more »

Ontario government pledges $3M in support for Grey Cup games in Hamilton

© Peter Power/The Canadian Press The provincial government has announced $3 million in funding for Grey Cup games in Hamilton. Ontario’s government is forking over $1.5 million to support Hamilton and ... Read more »

How to gain and equip professions in Wartales

© Provided by GamePur Becoming a master of a certain task can be beneficial to your party in Wartales. Having a unit take a profession means that they will become ... Read more »

Emmerdale fans left concerned for 'missing' Princess the dog as they point out past Meena link

Emmerdale fans have been left concerned for “missing” Princess the dog after murderer Meena Jutla offered to take care of her earlier this week. Only recently on the ITV soap, ... Read more »

Warzone Pacific Assault Rifle Early Tier List December 2021

Our Warzone Pacific assault rifle early tier list for December 2021 is here to project which guns will be the best to use as players begin to truly countdown the final days ... Read more »

Oil demand, climate change clash in California pipeline plan

The Associated PressFILE – In this May 21, 2015, file photo, workers prepare an oil containment boom at Refugio State Beach, north of Goleta, Calif., two days after an oil ... Read more »

Dolly Parton and Sandra Oh named People of the Year 2021

© Provided by Cover Media Dolly Parton Dolly Parton and Sandra Oh have been named 2021’s People of the Year by People magazine. The country music icon and Killing Eve ... Read more »

Alec Baldwin insists he 'didn't pull the trigger'

© Bang Showbiz Alec Baldwin insists he didn’t pull the trigger Alec Baldwin “didn’t pull the trigger” on the gun that killed Halyna Hutchins. The cinematographer was shot on the ... Read more »

When Does Flashback Chiellini Expire in FIFA 22?

Giorgio Chiellini received a special Flashback item in FIFA 22 as part of the Black Friday promotion. The Flashback card celebrates Chiellini’s Debut Season for Piemonte Calcio (Juventus) back in ... Read more »

Corrie fans slam 'disgusting' Curtis as heart condition diagnosis leaves them gobsmacked

Coronation Street fans were stunned on Wednesday evening as the truth about Curtis Delamere came out. The first episode began with Curtis confronting his fiancée Emma Brooker after she contacted ... Read more »

Canadian telecoms spent $700M on Huawei tech while Liberals delayed ban decision

© Provided by Global News In this Wednesday, July 15, 2020 file photo, a worker wearing a mask to curb the spread of the coronavirus speaks on the phone near ... Read more »

The Big Problem Fans Have With Act 3 Of Netflix's Arcane

Riot/Netflix It is often joked that Riot Games, creator of the immensely popular video game “League of Legends,” is actually a music and video production company that just happens to ... Read more »

UN calls for release of Kashmir rights defender Khurram Parvez

© Provided by Al Jazeera Indian paramilitary soldiers patrol during an operation in Srinagar, Indian controlled Kashmir [File: Dar Yasin/AP] Srinagar, Indian-administered Kashmir – The UN has expressed concern at ... Read more »

Chiefs hope refreshed Kyle Long can help offensive line

KANSAS CITY, Mo. (AP) — The Chiefs signed veteran offensive lineman Kyle Long after his year-long retirement with the expectation that he would arrive in training camp and immediately compete ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic