Biden pushes back Democrats on taxes

President BidenJoe BidenSunday Shows Sneak Peek: Coronavirus Dominates As Country Battles Delta Variant Has President Biden instituted a vaccine mandate for only half of the country’s teachers? Democrats look at vaccine mandates ahead of midterm MORE Lobbyed to prevent Congressional Democrats from slashing his tax proposals, as lawmakers work on a $ 3.5 trillion social spending program to advance the president’s economic agenda.

The White House and Congressional Democrats both want to raise taxes on the wealthy and businesses, and strengthen law enforcement, to fund investments in areas such as child care, health care and the climate. .

But legislation that the House Ways and Means Committee approved on Wednesday raised some taxes less than what Biden had previously proposed, and left out some of Biden’s proposals.

It remains to be seen whether the administration can get lawmakers to be more aggressive about raising and enforcing taxes, given the slim Democrats’ majority in Congress.

In recent days, the White House has stepped up its messaging and outreach efforts to lawmakers around the social spending package, and has particularly focused on its proposals to raise taxes on high-income households and businesses and to strengthen enforcement of the IRS against the wealthy.

The tax proposals were at the forefront in a speech Biden delivered to the White House on Thursday.

“I’m not here to punish anyone. I am a capitalist. If you can make a million or a billion dollars, that’s great. God bless you, ”Biden said. “All I ask is that you pay your fair share. Pay your fair share like middle class people do. But that’s not the case now.

Biden rebuffed Republican criticism of his economic plans, saying GOP lawmakers “would rather protect tax breaks for those at the top than give tax breaks to working families.”

The new efforts came as House Panels advanced their share of the $ 3.5 trillion package. In particular, the Ways and Means Committee has put forward a part that includes provisions for tax increases as well as provisions that extend the extension of tax credits that benefit low and middle income households.

The committee’s proposal is less aggressive in raising taxes on high-income households and businesses than the proposals Biden released earlier this year. House Democrats are proposing smaller increases in the corporate tax rate and higher capital gains rate than Biden. Additionally, the committee left out several of Biden’s income proposals, including those to tax capital gains on death and increase the amount of information financial institutions report to the IRS about accounts. banking.

White House officials have publicly spoken positively of the Ways and Means Committee bill, saying it was a key step towards achieving Biden’s tax goals. At the same time, the administration is pushing Congress to do more.

Biden on the day of his speech also spoke on the phone with the Speaker of the House Nancy PelosiNancy Pelosi Republicans caught in California recall trap Raise debt limit while starting to set budget “Justice for J6” organizer calls on protesters to respect law enforcement MORE (D-California) and Senate Majority Leader Charles schumerChuck SchumerBiden discusses agenda with Schumer and Pelosi ahead of pivotal week CEOs urge Congress to raise debt ceiling or risk ‘avoidable crisis’ (DN.Y.) on his economic agenda.

A reading of the White House appeal underscored unity with the two Democratic leaders.

He said the three policymakers “reaffirmed that as we act at this crucial time to ensure that working families are reintegrated into our economy, it is only fair that we pay for these tax cuts and these investments by repealing Trump tax freebies to the richest. Americans and large corporations, which often pay little or nothing in taxes. ”

The administration has been focusing in recent days on the IRS reporting proposal. The proposal calls for requiring financial institutions to provide the IRS with information about inflows and outflows in an attempt to prevent the wealthy from avoiding paying the taxes they already owe.

“These are the super-rich who are finally starting to pay what they owe – what the current tax code requires – just like the hard-working Americans across the country every tax day,” Biden said. in his speech Thursday.

secretary of the treasury Janet YellenJanet Louise Yellen White House Brags Nobel Economists’ Support for Biden Program Joe Manchin Wrong – We Can’t Afford Not To Invest In Our Children The Hill’s Morning Report – Presented by National Industries for the Blind – What Manchin and Sinema? FOLLOWING and IRS Commissioner Charles Rettig also sent letters to the Chairman of the Ways and Means Committee Richard nealRichard Edmund Neal Want a clean energy future? Watch the Tax Code Democrats Prepare for Toughest Milestone Yet With Biden’s Agenda Hill’s Morning Report – Brought to you by National Industries for the Blind – What do Manchin and Sinema want? FOLLOWING (D-Mass.) Last week in support of the proposed briefing report.

“The purpose of this reporting regime is to help the IRS pursue high-end non-compliance by providing information about opaque income streams that disproportionately flow back to the top,” Yellen wrote.

There are indications that some type of proposal on the declaration of bank accounts could be included in the final legislation. Neal said Wednesday his committee was “in conversation with the administration on report proposals that target sophisticated tax evasion and evasion without impacting the middle class and working people in America.”

Former congressional tax advisers say it’s no surprise the White House seeks to stress its position on taxes during negotiations on the social spending package.

“It seems pretty predictable to me that they are trying to get Congress to support the president’s agenda as much as possible,” said Ryan Abraham, a former assistant on the Senate finance committee who is now director of EY’s Washington board. .

The White House can also hope that Senate Democrats come up with tax increases that go beyond the House Democrats’ legislation. Chairman of the Senate Finance Committee Ron WydenRonald (Ron) Lee Wyden Want a clean energy future? Watch the tax code Democrats brace for toughest step yet with Biden agenda Lawmakers make case for boosting clean energy through infrastructure MORE (D-Ore.) Has expressed interest in tax hike options that were not in the Ways and Means bill, such as the annual tax on investment gains of billionaires and a tax on investment. excise on share buybacks.

“This policy is far from over,” Abraham said.

At the same time, Biden must ensure that nearly every member of the Democratic House and all Democratic senators vote for a final bill, and some moderates have already raised concerns about the tax and spending proposals in the House Democrats’ bill.

Biden met Sens on Wednesday. Joe manchinJoe ManchinBriahna Joy Gray: Push towards major social spending amid pandemic has been ‘short-lived’ Overnight Energy & Environment – Presented by Climate Power – Emissions heading towards pre-pandemic levels Biden discusses l agenda with Schumer and Pelosi ahead of pivotal week PLUS (DW.Va.) and Kyrsten CinemaKyrsten SinemaOvernight Energy & Environment – Brought to you by Climate Power – Emissions heading towards pre-pandemic levels Biden discusses agenda with Schumer and Pelosi ahead of pivotal week Biden targets top 1% in defense of hikes in plus taxes (D-Arizona), two moderates who have raised concerns about the size of the social spending package.

Democrats will also face a major effort from business groups and Republicans to argue against his tax proposals. For example, a group of financial sector organizations and businesses urged House leaders on Friday not to pass Biden’s IRS disclosure proposal, saying it was wrong. targeted to uncover cases of wealthy people breaking tax laws.

Congressional observers say Biden will have to strive for moderates and progressives to achieve consensus.

“When the political margins are very narrow, you just can’t ignore it,” said Jorge Castro, former congressional aide and senior IRS official who is now co-responsible for tax policy practice at Miller & Chevalier.