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Democrats negotiate taxes and medical regulations as Biden wants a deal this week

Washington — The Democratic Party is working hard to conclude negotiations on a wide range of social policy and climate bills in the face of weekend deadlines to resolve disagreements on tax policy and health care.

President Biden spoke to reporters before leaving Delaware for an event in New Jersey and said he was looking forward to an agreement before leaving for Europe later this week. “It would be very positive to get it done before the trip,” Biden said.

White House spokeswoman Carine Jean Pierre added: I will arrive soon. “

Biden will meet with Senator Joe Manchin (Democratic Party of West Virginia) and Senate leader Chuck Schumer (Democratic Party of New York), who are important centrists of the talks, and will cost between $ 1.5 trillion and $ 2 trillion. Will take.

Senator Kyrsten Sinema (D., Arizona) has shown opposition to raising various tax rates, complicating discussions on the Democratic spending bill.


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Anna Money Maker / Getty Images

Top Democrats want to secure a package agreement this week for two reasons. First, Mr. Biden urged legislative action on climate change before heading for climate change. Glasgow Climate Summit, Scotland..

Second, the Democratic Party wants an agreement to clarify support for a $ 1 trillion infrastructure package that will reapprove a transportation program that will expire on October 31st. The progressive Democratic Party has said that even the party will block public works bills. The first rally on social policy and climate bills.

Democrats have been working to find new ways to pay for package spending after centrist politician Kyrsten Cinema (D., Arizona). Signaled her opposition For raising marginal tax rates on businesses, capital gains or individuals.

One major idea is Annual tax on billionaires’ unrealized capital gains.. A proposal under consideration by Senate Finance Committee Chairman Ron Wyden (D., Oregon) was to impose an annual tax on unrealized capital gains on liquid assets held by millionaires.

The tax is expected to affect people with $ 1 billion in wealth and $ 100 million in income for the third consecutive year, according to people familiar with the matter. This idea, which Mr. Biden recently expressed support after excluding it from the campaign plan and executive agenda, will affect a narrower group of people than the already unsuccessful changes in capital gains among Democrats in Congress. ..

Cinema’s spokeswoman said Friday that he was working with Senator Elizabeth Warren (Democratic Party, Massachusetts), who is imposing an annual tax on the wealthiest American assets. Those familiar with the negotiations said Cinema and Warren were discussing a tax on the interests of millionaires and a minimum tax on corporate bookkeeping income.

Senator Joe Manchin, D., West Virginia, is an important centrist vote in negotiations over the Democratic spending bill.


Photo:

ELIZABETH FRANTZ / REUTERS

However, taxation of unrealized profits faces hurdles. Weiden and his staff have been working on the idea for two years, but haven’t published a legislative document yet, and some Democrats are skeptical of the provision.

The proposal is expected to include steps to address execution, unrealized losses, and the difficult administrative challenges of valuing illiquid assets such as tightly held businesses and artwork. increase. And you may face legal issues as to whether it meets the definition of income tax in the Article 16 amendment.

Still, Speaker of the House Nancy Persony, the Democratic Party of California, said on Sunday that she expects taxes on billionaires’ assets to reach a final agreement. She said she is likely to generate $ 200- $ 250 billion in revenue over a decade, but the Democratic Party could find another way to pay for the bill. She said she hopes an agreement will emerge earlier this week that reflects the consensus of all 50 senators on the tax and revenue portion of the bill.

This package includes universal kindergartens for ages 3 and 4, subsidized child care, expanded subsidies for three years of enhanced affordable care, and people in certain states who did not choose. Will include several years of medical insurance against. Expand Medicaid, according to lawmakers and aides.

Several other provisions are subject to negotiation, including climate policy, paid family vacation, expansion of Medicare to cover dental, auditory and visual benefits, and allowing Medicare to negotiate prescription drug prices. It has become.

Negotiations said Monday that Democrats have not yet made a final decision on tax increases and paid holidays.

Write in Andrew Duehren at andrew.duehren@wsj.com And Christina Peterson kristina.peterson@wsj.com

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Democrats negotiate taxes and medical regulations as Biden wants a deal this week

Source link Democrats negotiate taxes and medical regulations as Biden wants a deal this week

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