WASHINGTON — Democrats have cut some of their proposed minimum tax rates on giant corporations and made other changes to their giant economic bill, Senate Majority Leader Chuck Schumer said Friday.
In a rare sneak peek into closed-door talks, Schumer, DN.Y., Democrat after pivotal centrist Senator Kirsten Cinema (D, Arizona) said she would vote otherwise said it had dropped a proposal to raise taxes on hedge fund executives. “number.” The alternative would be to impose a new tax on the stocks that companies buy back, which would generate more revenue for the government, Schumer said.
“Sen. Cinema said they would not vote on the bill.” Schumer told reporters that he would even vote to start a debate unless the private equity tax was removed from the law. “So we had no choice.”
He spoke a day after he and cinema announced amendments to the compromise package for the environment, health care and tax packages. will generate revenue exceeding This includes stronger IRS tax revenues. Most of it will be used for energy, climate and health initiatives that cut the federal deficit by his $300 billion.
With the deal, Democrats are on the verge of a more modest but impressive resurgence of many of Biden’s domestic aspirations to appeal to the party’s voters. They include taxing large corporations, curbing prescription drug prices, slowing climate change, allowing families to purchase private health insurance, and reducing federal deficits.
In another change, Schumer said the proposed 15% minimum tax rate on mammoth corporations would be cut, raising between $313 billion and $258 billion over the next decade. The provision, which is the law’s largest source of revenue, will allow these companies to depreciate their equipment costs more quickly, reduce the government’s tax burden, and help manufacturers buy expensive machinery. can do. The new tax is expected to apply to about 150 businesses with revenues over $1 billion.
Democrats plan to have the Senate begin consideration of the bill on Saturday, and the House will return for a vote next Friday. The bill is sure to face unanimous Republican opposition in the Senate 50-50, and its passage will require the support of Cinema and all other Democrats and a tie vote from Vice President Kamala Harris. Is required.
“This bill is a game changer for working families and our economy.” Biden said at the White House.
Republicans say the measure will exacerbate inflation, and “voters’ biggest concern” is that it will discourage businesses from hiring workers and raise energy costs already high due to taxes.
“Pump pain will get worse. It’s not just the cost of energy to drive a car.” Senator John Barrasso of Wyoming, the third Republican leader in the Senate, said: “It’s also the energy that heats a home, the energy that runs a country, the energy that’s electric.”
Independent analysts said the bill would have little impact on inflation and the economy.
“We feel pretty good” Schumer said of the bill. “It’s what the country desperately needs, and that’s what Democrats are going to deliver in the next few days.”
The bill also includes the $4 billion sought by Western senators, according to Arizona Senators Mark Kelly, Nevada Rep. Catherine Cortez Mast, and Colorado Rep. Michael Bennett. It is said that The group was seeking $5 billion.
Still other changes are possible. Senator Elizabeth McDonough will soon clarify whether several provisions violate Congressional budgetary procedures and should be removed. Democrats use special rules that allow them to overcome Republican opposition and pass packages without requiring the 60 votes that most bills require.
Potentially vulnerable clauses include language requiring drug manufacturers to pay fines if patients raise the price of drugs they obtain from private insurers above inflation.
The bill faces long weekends including weekends. “Rama’s Vote” of unrestricted, non-stop voting for amendments that mostly come from the Republican Party. Most are destined to lose, but Republicans want some lawmakers to force Democrats to vote and fall prey to election ads.
Taxing executives of private equity firms such as hedge funds has long been a progressive goal. Under current law, these executives pay well below the top 37% personal tax rate on income. can do. “I was interested.”
The move was also a favorite of conservative Senator Joe Manchin (DW.Va.), who has long opposed the larger version of Biden’s domestic plan that helped craft a compromise with Schumer.
But progressives also support taxing publicly traded companies that buy back their own shares, a move critics say would artificially boost stock prices and divert money away from investment. Net profit of $74 billion over 10 years, “Carrie Interest” The plan would have been pulled up.
In Thursday night’s breakthrough, cinema said it agreed and was ready to change the law “Advance” on the bill.In his own statement, Schumer said he believed in the deal. “We have full support” Democrats in Congress.