Democratic leaders and the White House were racing on Wednesday to resolve a number of key disagreements on their expansive social safety net and climate bill before President Joe Biden departs on Thursday for Europe, even as some lawmakers signaled they may not be able to agree on a framework by the end of the day. White House staff met Wednesday morning with Senators Kyrsten Sinema (D-Arizona) and Joe Manchin (D-West Virginia) on Capitol Hill for more than an hour, a day after the two Democratic holdouts met privately with Mr. Biden at the White House. Reports say the meeting had yielded progress and other Democrats expressed optimism that they could soon agree to an outline. Senate Majority Leader Chuck Schumer (D-N.Y.) said he is “hopeful” that Democrats and the White House can reach a deal on a spending framework by the end of the day, though he acknowledged that sticking points remain including the inclusion of a federal paid and medical leave program, a push to expand Medicaid and Medicare, and how to fully finance the package. Senator Manchin says he’s not yet at all on board with a proposed billionaire income tax and instead is offering his own proposal to expand a minimum tax on top-earning households, injecting more uncertainty into how Democrats will pay for the package. Manchin told reporters Wednesday that Senate Finance Committee Chairman Ron Wyden’s (D-Oregon) plan (TEXT) to tax the unrealized gains of billionaires is “convoluted” and that he doesn’t like that it solely targets successful business owners who have created lots of jobs and donated to philanthropic endeavors, rather than a broader base of high-net-worth individuals. The billionaire tax idea upends longstanding principles on capital gains taxation and would require that those with at least $1 billion in assets pay tax annually on their investments, rather than when they’re sold. It’s the latest addition to the potential revenue raisers that Democrats are considering to fund Biden’s nearly $2 trillion economic agenda. The idea, which has been under discussion for years, came to the forefront recently after Senator Sinema said she wouldn’t support raising corporate or individual rates. Manchin compared this idea to the minimum corporate levy that Senate Democrats unveiled Tuesday that would require companies with lots of tax breaks to pay at least 15% on the profits they report to shareholders. He said his idea would require that same minimum payment from taxpayers who are able to use deductions and credits to whittle their tax bills down to zero. Manchin, as well as Sinema, another key holdout vote, have both said they support a minimum tax on corporations. Top Democrats hope that a compromise on the plan, which is now expected to spend at least $1.5 trillion to address climate change, universal prekindergarten, health care and federal support for child care and home care, could also help pave the way finally for a House vote on a Senate-passed $1 trillion bipartisan infrastructure package.
For today, the Senate will vote on the nomination of Michael S. Nachmanoff to be United States District Judge for the Eastern District of Virginia, the nomination of Sarala Vidya Nagala to be United States District Judge for the District of Connecticut and the nomination of Omar Antonio Williams to be United States District Judge for the District of Connecticut. Later today, the Senate will also consider the nomination of Matthew G. Olsen to be an Assistant Attorney General and Christopher H. Schroeder, to be Assistant Attorney General.
The House will consider five bills under suspension of the Rules including H.R. 4035 – Real Justice for Our Veterans Act of 2021.
Adam S. Olsen, Washington, D.C.
