Ways and Means Chairman Richard Neal, D-Mass., omitted that from his panel’s plan.ĭemocrats want to provide tax credits for children, health care and child care costs and low-income workers. It’s unclear which proposals will survive and in what form.įor example, Senate Finance Committee Chairman Ron Wyden, D-Ore., has expressed interest in boosting taxes on the value of some large estates that heirs inherit. That would be up from 37% approved under former President Donald Trump.īut Democrats also want to raise other levies on the wealthiest. Some details and numbers seem likely to change.īiden, who’s promised to not increase taxes on people earning under $400,000, will probably get his proposal to raise the top individual income tax rate on the richest Americans to 39.6%. To pay for much of the bill, the House Ways and Means Committee approved $2.1 trillion in tax boosts, mostly on the rich and corporations. But since House committees just finished crafting a $3.5 trillion version of the package, a smaller price tag means some priorities would have to be trimmed. Led by Senate Budget Committee Chairman Bernie Sanders, I-Vt., they initially said at least $6 trillion was needed for serious efforts to help families and curb global warming.Įventually a compromise will be reached, with some expecting it in the $2 trillion to $2.5 trillion range. Manchin has suggested limiting the total to $1 trillion to $1.5 trillion, which progressives reject as paltry. Biden, House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y., have recently acknowledged what seems inevitable: The final cost may have to drop. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona have said $3.5 trillion is too expensive, and votes from every Democrat in the 50-50 Senate are mandatory for success. That’s a huge sum, though a fraction of the $61 trillion in federal spending already slated over that period. The White House and top Democrats compromised on a $3.5 trillion, 10-year cost for the bill. Here’s a guide to some pivotal differences they must resolve:
That’s what congressional Democrats face as they try writing a final version of a massive bill bolstering the social safety net and strengthening efforts to tame climate change.