•   
  •   
  •   

Politics Manchin raises concerns over billionaires' tax as Democrats scramble to close deal

22:15  27 october  2021
22:15  27 october  2021 Source:   abcnews.go.com

Joe Manchin's 'Good Friend,' Union Leader Cecil Roberts, Says Eliminating Fossil Fuels Is a Deal-Breaker

  Joe Manchin's 'Good Friend,' Union Leader Cecil Roberts, Says Eliminating Fossil Fuels Is a Deal-Breaker United Mine Workers of America President Cecil Roberts stands by his friend Joe Manchin who seeks "innovation, not elimination" when it comes to fossil fuels.Part of the plan, the Clean Electricity Performance Program (CEPP), consists of a $150 billion program designed to increase the amount of clean energy distributed to consumers by 4 percent each year. Companies that complete this objective would receive financial incentives and those that fail would face financial penalties.

Democrats on Wednesday scrambled to close the deal on President Joe Biden's landmark social spending legislation, focusing on new ways to pay for the package, including a billionaires' tax the White House said the president supports.

At the same time, they were hoping to make enough progress that House progressives would agree to vote for a separate Senate-passed bipartisan infrastructure bill before Biden heads overseas Thursday.

Just hours after Senate Democrats on Wednesday morning unveiled the "billionaires tax" -- to tax the wealth of a few hundred of the wealthiest of Americans -- the gambit came into question when Democrat Sen. Joe Manchin, a decisive vote on the bigger social spending bill, raised concerns.

Overnight Energy & Environment — Presented by the American Petroleum Institute — Manchin, Tester voice opposition to carbon tax

  Overnight Energy & Environment — Presented by the American Petroleum Institute — Manchin, Tester voice opposition to carbon tax Welcome to Tuesday's Overnight Energy & Environment, your source for the latest news focused on energy, the environment and beyond. Subscribe here: thehill.com/newsletter-signup.Today we're looking at some opposition to a carbon tax from Democratic Sens. Joe Manchin (W.Va.) and John Tester (Mont.), Manchin's seeming desire to get to a deal soon and a relatively quiet hearing for nominees at the National Park Service, FERC and the Energy Department. For The Hill, we're Rachel Frazin and Zack Budryk. Write to us with tips: rfrazin@thehill.com and zbudryk@thehill.com. Follow us on Twitter: @RachelFrazin and @BudrykZack.Let's jump in.

"I'm supporting, basically, that everyone should pay their fair share," Manchin told reporters on Capitol Hill. "I don't like the connotation that we're targeting different people."

When asked about the plan, proposed by Sen. Ron Wyden, D-Ore., which would help pay the $1.5 -2 trillion cost for sweeping new programs including child care, child tax credits, family leave and environmental initiatives, Manchin hesitated, saying while he thought they would "absolutely" get to a deal "the Senate will take time."

"There's a lot going on with that and it's very convoluted. I believe there's going to be everyone's going to pay. I believe that we will end up where everyone must participate," he said.

Sen. Joe Manchin speaks to reporters on Capitol Hill in Washington, Oct. 27, 2021. © Andrew Harnik/AP Sen. Joe Manchin speaks to reporters on Capitol Hill in Washington, Oct. 27, 2021.

Wyden's plan would apply to people with at least $1 billion in assets or $100 million in income for three consecutive years, applies to increased value on assets -- so-called "unrealized gains" not now subject to tax -- and would impact roughly 700 taxpayers, according to experts. White House press secretary Jen Psaki announced at Wednesday's briefing that the plan has Biden's support.

The case for a billionaires income tax

  The case for a billionaires income tax Since the beginning of the pandemic, 745 U.S. billionaires have seen their total wealth increase by $2.1 trillion, a gain of 70 percent. © Istock billionaires Senate Finance Chairman Ron Wyden (D-Ore.) has been pushing what he calls a "Billionaires Income Tax" for some time now, as one of a number of fair tax reforms to pay for President Biden's sweeping "Build Back Better" agenda. With Sen. Kyrsten Sinema (D-Ariz.) obstinately opposing more traditional increases, including raising top individual and corporate rates, this tax on the America's very richest is reportedly now in the center of negotiations.

  Manchin raises concerns over billionaires' tax as Democrats scramble to close deal © Andrew Harnik/AP

But the option raises some constitutional concerns and could depend ultimately on the Supreme Court's interpretation of a wealth tax as a direct tax on property, which is unconstitutional, or whether it's another form of income tax, which is constitutional. Legal challenges also risk undermining the president's promise that his plans would be completely paid for.

"We're not going to support anything we don't think it's legal," Psaki said. "But I will tell you, the president supports the billionaire tax. He looks forward to working with Congress and chairman Wyden to make sure the highest-income Americans pay their fair share," he said.

Aside from the billionaires' tax plan, Manchin said he and his fellow Democrats are on board with another proposal to help pay for the sweeping programs: a 15% minimum tax on the country's wealthiest companies.

Manchin sees deal on Biden agenda this week, resists Medicare expansion

  Manchin sees deal on Biden agenda this week, resists Medicare expansion Sen. Joe Manchin, who for months has called for a pause in talks over President Joe Biden's social safety net package, on Monday offered his most optimistic assessment yet that a deal could be reached imminently -- as soon as this week. © Anna Moneymaker/Getty Images Sen. Joe Manchin (D-WV) speaks at a press conference outside his office on Capitol Hill on October 06, 2021 in Washington, DC. Manchin spoke on the debt limit and the infrastructure bill.

"We've all agreed on a 15% corporate tax," he said."There’s a patriotic duty that you should be paying something to this great country to give you the protection and the support and the opportunities. That's called a patriotic tax. It will be nothing that should be scorned about."

MORE: Democrats expected to take short-term debt ceiling increase, reject GOP reconciliation offer

Wyden, Sen. Elizabeth Warren, D-Mass., and Sen. Angus King, I-Maine, introduced the plan to establish a 15% minimum corporate minimum tax rate that's aimed at companies making more than $1 billion in profits annually. They estimate the plan would apply to 200 companies generating "hundreds of billions in revenue over ten years," according to a statement form the senators.

Warren pointed to Arizona Democratic Sen. Kyrsten Sinema in promoting the plan as negotiation continued on Capitol Hill, telling reporters they scrapped the idea of raising individual tax rates on the rich because, she said, those people do avoid taxes anyway.

Sen. Elizabeth Warren speaks to reporters outside of the Democratic Policy luncheon at the Capitol, Oct. 5, 2021. © Anna Moneymaker/Getty Images Sen. Elizabeth Warren speaks to reporters outside of the Democratic Policy luncheon at the Capitol, Oct. 5, 2021.

"They have now opened that hole to the point that billionaires drive semis through it loaded with money," Warren said of the current tax system.

Democrats unveil billionaires' tax as Biden plan takes shape

  Democrats unveil billionaires' tax as Biden plan takes shape WASHINGTON (AP) — Pushing past skeptics, Senate Democrats on Wednesday unveiled a new billionaires’ tax proposal, an entirely new entry in the tax code designed to help pay for President Joe Biden’s sweeping domestic policy package and edge his party closer to an overall agreement. The proposed tax would hit the gains of those with more than $1 billion in assets or incomes of more than $100 million a year, and it could begin to shore up the big social services and climate change plan Biden is racing to finish before departing this week for global summits. © Provided by Associated Press Sen. Joe Manchin, D-W.Va., speaks to the Economic Club, Tuesday, Oct.

The corporate tax proposal, and the separate tax on billionaires, are aimed at that tax avoidance -- what lawmakers said was the concern of Sinema, who with Manchin, has been a Democratic holdout.

"The idea here is to say, 'Enough, enough. If you're a corporation that makes more than $100 billion dollars in profits -- not revenues, not assets -- but profits, then you're going to pay a minimum 15% tax," Warren told reporters.

MORE: Biden pulls back curtain on spending negotiations with Democrats

"It's not a new tax idea. The taxes are actually already there," she added. "We're now saying,"We want you to -- you've got to -- make this on an annual basis instead of putting it off for 30 or 40 years."

As the clock also ticks on Biden's overseas trip and White House senior staff do last-minute lobbying to lawmakers, Psaki said Wednesday the president also "remains open to going to the Hill."

President Joe Biden speaks to the media before boarding Air Force One at Delaware Air National Guard Base for a trip to New Jersey to promote his © Evan Vucci/AP President Joe Biden speaks to the media before boarding Air Force One at Delaware Air National Guard Base for a trip to New Jersey to promote his "Build Back Better" agenda, Oct. 25, 2021, in New Castle, Del.

But she also signaled that if there isn't a vote this week, the White House wouldn't accept it as a loss.

"We're on the verge of getting to a deal," she said of negotiations. "They don't look at it through the prism of whether there is a vote in one [sic] legislative body before he gets on an airplane," She said.

Paid family leave falls out of Biden bill as tempers rise

  Paid family leave falls out of Biden bill as tempers rise WASHINGTON (AP) — Top Democrats signaled a deal is within reach on President Joe Biden's big domestic bill but momentum fizzled and tempers flared late Wednesday as a paid family leave proposal fell out and a billionaires' tax appeared scrapped, mostly to satisfy a pivotal member of the 50-50 Senate. With his signature domestic initiative at stake, Biden will head to Capitol Hill on Thursday morning to urge Democratic lawmakers to bring talks on the social services and climate change bill “over the finish line” before he departs for global summits overseas.

MORE: Biden says he'll 'work like hell' to get infrastructure agenda across finish line

Biden summoned Manchin and Sinema to the White House Tuesday night, but Democrats appear still at odds over key issues on expansion Medicare, Medicaid and family leave.

White House Press Secretary Jen Psaki holds the daily press briefing at the White House in Washington, Oct. 27, 2021. © Jonathan Ernst/Reuters White House Press Secretary Jen Psaki holds the daily press briefing at the White House in Washington, Oct. 27, 2021.

Despite some progressives' objections, an optimistic-sounding House Speaker Nancy Pelosi signaled the House could act on the "BIF" -- the bipartisan infrastructure framework bill -- sooner rather than later, with the thinking the chamber can and should vote on BIF with a framework in hand.

"In order for the BIF to pass, we need to have the trust, the confidence and the reality of the Build Back Better bill," Pelosi told House Democrats in a closed-door meeting, a source familiar told ABC News.

Notably, Pelosi has said she doesn't bring bills to the floor for a vote if she knows they are going to lose.

"In the next couple of hours, I will be communicating with you on our path from here to there … depending on what happens at the White House," she said. "That will determine our timetable, our course of action, but we are in pretty good shape."

Coming out of a meeting later, Pelosi told reporters that Democrats are in "pretty good shape" on the social spending bill.

Speaker of the House, Nancy Pelosi speaks during her weekly press briefing on Capitol Hill in Washington, DC. © Mandel Ngan/AFP via Getty Images, FILE Speaker of the House, Nancy Pelosi speaks during her weekly press briefing on Capitol Hill in Washington, DC.

"We have to just make decisions about one thing or another," Pelosi said, heaping praise on Biden for leading the charge. "I feel pretty good about it."

Manchin pitches 'patriotic' 15% billionaires tax

  Manchin pitches 'patriotic' 15% billionaires tax Sen. Joe Manchin, a key centrist Democrat negotiating the party’s massive social welfare spending bill, criticized a new plan to tax billionaires but came up with his own formula. © Provided by Washington Examiner Manchin, of West Virginia, pitched a “patriotic” 15% tax on the nation’s billionaires that would ensure they pay enough. “That’s called a patriotic tax,” Manchin told reporters on Wednesday.

Pelosi notified members in a new dear colleague letter this afternoon that the House Rules Committee will hold a hearing on Thursday on the Build Back Better Act.

The hearing does not mean the bill is ready to hit the floor, as negotiations continue, but it will offer committee leaders a chance to speak to members about the bill. She wrote that progress had been made on a few sticking points, including closing the Medicaid coverage gap, but they're still working to close a deal on paid family and medical leave.

MORE: As Republicans play debt limit brinkmanship, nation barrels toward default

Meanwhile, a disgruntled Sen. Bernie Sanders told reporters that he doesn’t see a deal by the end of the day.

“I don't know, but I don't think so. I'm not quite clear in terms of the revenue package. Every sensible revenue option seems to be destroyed,” Sanders said.

Members of the Congressional Black Caucus said Thursday at a press conference they are also ready to vote "soon" on the legislation that chair Joyce Beatty, D-Ohio, said members have not been on the sidelines for when it comes to negotiations.

Rep. Joyce Beatty, chairwoman of the Congressional Black Caucus, speaks during a news conference, on the inclusion of Black policy priorities in the © Jose Luis Magana/AP Rep. Joyce Beatty, chairwoman of the Congressional Black Caucus, speaks during a news conference, on the inclusion of Black policy priorities in the "Build Back Better" agenda and the bipartisan infrastructure bill, in Washington, Oct. 27, 2021.

"I don't think we're in a position to keep kicking the can down the road," Beatty said. "You know, infrastructure is very important, and we need to make sure that we meet the deadline that is imminent."

The White House is hoping Biden will be able to tout the sweeping infrastructure package at the COP26 summit and G-20 summit this weekend.

According to an analysis by the pro-wealth-tax Americans for Tax Fairness and the Institute for Policy Studies Program on Inequality, billionaires in the U.S. have seen their collected wealth surge 70% since the start of the COVID-19 pandemic to more than $5 trillion -- a gain equal in size to Biden's spending plans over 10 years, The Associated Press reported.

The president did not campaign on a wealth tax but vowed no one earning less than $400,000 would pay more in taxes in his administration.

ABC News' Sarah Donaldson contributed to this report.

248 millionaires are calling for Democrats to tax billionaires' income. 'We have a rare opportunity to reform our broken tax code.' .
Signatory Morris Pearl said there's a fear rich people might "go on strike" if taxes go up, but the millionaires know it's in their best interest.Democrats are finally narrowing in on what the final proposal will look like, and are reportedly hoping to vote on the legislation on Tuesday.

usr: 1
This is interesting!