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Senate Majority Leader Chuck Schumer, DN.Y., is considering how to pass President Biden’s third economic spending bill later this year without any Republican votes via an obscure Senate rule that would allow Democrats to ‘use reconciliation again.
Schumer’s top political advisers recently argued to the Senate Parliamentarian, a non-partisan arbiter, that Section 304 of the Congressional Budget Act allows Democrats to pass at least a third bill this year using a simple majority, an aide to the New York Democrat told Fox News.
“Schumer wants to maximize his options for allowing Senate Democrats multiple avenues to advance President Biden’s Build Back Better agenda if Senate Republicans attempt to obstruct or dilute a bipartisan deal,” the aide said.
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Democrats have already used the budget reconciliation to pass the US $ 1.9 trillion bailout earlier this month, and plan to use the method again to bypass GOP votes on the next bill. on Biden infrastructure.
The complicated Senate process allows Democrats to bypass the 60-vote obstruction and advance the measure using their 50 seats, with Vice President Kamala Harris breaking any tie. Without reconciliation, which can be used on some bills on taxes, spending and debt limits, Democrats would have to gain the support of at least 10 Republicans.
Still, there are limits to what the legislation qualifies for reconciliation and how often the process can be used – the thought on Capitol Hill was that Democrats could only use the mechanism once more before the midterm elections in 2022.
But Schumer aides believe Section 304 could give them the power to legislate using reconciliation for the third time this year, even though the process is technically only allowed to be used once per fiscal year, stressing wording that says “both Houses may Adopt a concurrent budget resolution that revises or reaffirms the most recently agreed concurrent budget resolution for that fiscal year.”
It’s unclear how many more opportunities for reconciliation it would give Democrats if the Senate MP gave the green light to the theory, but Schumer’s aides believe it would at least give them one more chance, in addition to luck. remaining that they plan to use to pass Biden’s construction. Return Better invoice.
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“No final decision has been taken on legislative strategy,” the aide said. “We are simply arguing that additional reconciliation invoices may be considered for [this fiscal year]. ”
The White House is currently laying the groundwork for an ambitious, multi-part infrastructure bill that Biden will unveil in Pittsburgh this week. The specific contours of the measure are still unclear, but it is widely expected to include a series of tax hikes, including increasing the corporate tax rate to 28% from 21%, the increase the tax rate on the income of individuals earning more than $ 400,000, the expansion of the inheritance tax. , creating a higher capital gains tax rate for individuals earning at least $ 1 million a year and reducing tax benefits for so-called “pass-through” companies.
Senate Majority Leader Chuck Schumer, DN.Y., praises his Democratic caucus at a press conference just after the Senate narrowly approved a 1.9 relief bill Trillion dollars COVID-19, on Capitol Hill in Washington, Saturday, March 6, 2021 (AP Photo / J. Scott Applewhite)
The measure could cost more than $ 3 trillion, according to the Wall Street Journal.
The White House is also expected to divide the legislative effort into two main components: one focused primarily on investments in infrastructure and clean energy, and the other focused on issues such as child care and universal preschool. .
Tax increases should be distributed in the same way; the infrastructure part of the bill would be funded by corporate taxation, including increasing the corporate tax rate to 28%, increasing the overall minimum tax paid from around 13% to 21%, ending federal subsidies for fossil fuel companies and forcing multinational companies to pay the US tax rate rather than the lower rates offered by foreign affiliates, the Washington Post reported on Monday.
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The second part of the legislation focused on national priorities, meanwhile, would be paid for by increasing the top tax rate from 37% to 39.6%, increasing taxes on wealthy investors and limiting deductions that wealthy taxpayers can claim each year, the Post reported.
The proposals largely mirror what Biden campaigned on in the 2020 election. He has repeatedly stated that tax hikes will not affect Americans earning less than $ 400,000 a year.
But the tax proposals will almost certainly attract criticism from Republicans, as well as some moderate Democrats who fear raising tax rates as the economy continues to recover from the coronavirus pandemic.
Senate Minority Leader Mitch McConnell, R-Ky., Said last week that there would be no bipartisan support for such a move, and the Chamber of Commerce warned that the rate hike corporate tax “would make the United States a less attractive place to invest profits and locate corporate headquarters.”
The national debt is expected to reach $ 30 trillion by the end of the year.
Fox News’ Chad Pergram contributed to this report
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