Manchin offered Schumer a $ 1.5 billion frontline issue this summer



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In the paper, Manchin proposes to raise the corporate tax rate to 25%, the highest income tax rate to 39.6%, to raise the capital gains tax rate to 28 % and says any revenue from the bill “over” $ 1.5 trillion will go to Deficit Reduction.

Manchin has repeatedly raised the deficit as one of his main concerns, and in it he calls on the Federal Reserve to cut its quantitative easing program in the interest of alleviating inflation problems and calls for ‘No funds from this bill were spent prior to Covid’s previous aid. the money is paid.

“Senator Manchin does not guarantee that he will vote for the final reconciliation law if it exceeds the conditions set out in this agreement,” the newspaper read in bold.

Manchin and Schumer both signed the document. Schumer seems to have written a note saying that he “will try to change Joe on some of them”.

“Leader Schumer never accepted any of the conditions set out by Senator Manchin; he simply recognized where Senator Manchin was on the matter at the time, ”a spokesperson for Schumer said. “The senator. Manchin did not rule out voting for a reconciliation bill that went beyond the ideas he had outlined, and Leader Schumer has made it clear that he will work to convince Senator Manchin to support a final reconciliation bill. – as he has been doing for weeks.

Democrats are unlikely to accept Manchin’s demands, and it is unclear how flexible Manchin will ultimately be. But the document shows Manchin provided Schumer with more information than many grassroots Democrats.

He has also met Biden on several occasions since signing the document and has spoken frequently in the White House this week. The White House and other Democrats have largely rejected Manchin’s proposal so far. But they must also deal with him in a 50-50 Senate where Democrats cannot lose a single vote in passing a bill through budget reconciliation, which allows economic legislation to be passed by a simple majority.

Separately, Biden and the White House have engaged in frantic negotiations with Senator Kyrsten Sinema (D-Arizona), the other major obstacle in the Senate. She is generally aligned with Manchin on the spending count, but has expressed more concerns about the Democrats’ tax plans than Manchin.

Manchin said on Wednesday that the top priority of the Senate reconciliation bill should be tax reform, and he is generally on the same page with most Democrats in his proposal – although his idea of ​​the rate. corporate taxation is lower than Biden’s preference and that of House Democrats. Manchin is not alone there: Senator Angus King (I-Maine) said in an interview this week that he also prefers a 25% corporate rate.

In addition, Manchin calls for testing means on as many new programs as possible, including health care, child care and education, “spending caps targeted on existing programs” and “no documents or additional transfer program ”. Manchin has repeatedly expressed concerns about Biden’s plan to potentially create a “rights society.”

Finally, as chairman of the Senate Energy Committee, the Democrat of the Coal State demands that his panel have exclusive jurisdiction over any clean energy standard and calls for “innovation and not elimination” of sources. of energy. He is also asking for support for technologies that capture emissions from power plants and store them underground, known as carbon capture and sequestration.

In addition, he wants reassurance that fossil fuel subsidies will not be repealed if tax credits for wind and solar power are included in the bill and asks that if tax credits are extended. electric vehicles, they also include hydrogen vehicles.

Anthony Adragna contributed to this report.

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