Social spending bill: negotiations continue, and Biden wants it debated this week in Congress.

Social%20spending%20bill%3A%20negotiations%20continue%2C%20and%20Biden%20wants%20it%20debated%20this%20week%20in%20Congress.
source: abcnews.go.com

The initiative, worth at least $ 1.75 trillion, plans significant infrastructure, health and child care, and strategies to tackle climate change. So what does the tax on large fortunes entail to finance the plan?

Crucial Democratic Senator Joe Manchin appears to be on board with White House proposals on new taxes on billionaires and certain corporations to help fund President Joe Biden's scaled-down social services and climate change package.

Biden said Monday that he is "very optimistic" about reaching a deal on his big domestic policy bill and looks forward to putting the matter to a vote in Congress this week, although that is not certain.

"That's my hope," the president said before leaving his home in Delaware for New Jersey, where he will highlight the package's childcare proposals and his infrastructure plan.

Democrats are working hard to shut down the talks, scaling back what had been a sprawling $ 3.5 trillion plan so the president can highlight his administration's accomplishments to world leaders at two overseas summits on the economy and the economy. Climate change will begin this week.

Biden met with West Virginia Conservative Democrat Manchin and Senate Majority Leader Chuck Schumer Sunday at the president's Delaware home to resolve disputes between centrists and progressives that have stalled the proposal. A person who insisted on anonymity to discuss Manchin's position told the AP news agency that the senator accepts the White House's new strategy on the tax proposals.

West Virginia Senator Joe Manchin and Arizona Senator Kyrsten Sinema, two center Democrats, have the equivalent of veto power over these bills in light of the highly narrow Democratic majority in the upper house of Congress. Manchin, whose state is home to large coal mining corporations, opposes measures to force companies to adopt clean technologies.

For now, it is considered as a package of at least 1.75 trillion dollars. According to another person who insisted on anonymity, that's within a range that could still go up a lot.

House Speaker Nancy Pelosi said that Biden's national initiative would be more significant than any other legislative package, even with "half" of the original $ 3.5 trillion proposals. The industry contains significant investments in health care, child care, and strategies to tackle climate change.

The President of the United States wanted to pass a $ 3.5 trillion program to improve health care, education, and early childhood care. It is about half of the Defense spending. However, during discussions within his party, this figure dropped.

Pelosi also said on Sunday that lawmakers from her party could reach a compromise next week on the broad reforms that US President Joe Biden is seeking.

" We are almost there," Pelosi told CNN. He replied that "that's the plan" when asked if an agreement would be reached in a week. " We have an agreement on 90% of the project; we just have to make some final decisions," he added.

There are struggles over some clauses of the package, such as the possibility of reducing or eliminating the plan to expand the Medicare assistance plan, child care assistance, and assistance for low-income students.

The White House and party leaders in Congress have been trying to wrap up negotiations before the end of October. The Democrats are trying to reach an agreement that can support both the most progressive and the most conservative sectors of the party.

Democrats also want to give President Biden something concrete to wear and present to the climate summit in Scotland in early November and create a case for Terry McAuliffe in the tightly contested Virginia gubernatorial election on Nov. 2.

The idea is to agree to generate enough momentum in Congress so that Democrats in the House of Representatives can pass a different measure, investing $ 1 trillion in plans to improve roads and access to broadband internet.

"Tax the rich."

The United States, a country that worships individual success, is preparing to endow itself with a tax on large fortunes to finance investment plans.

Faced with opposition from a portion of Democrats to raising taxes on multinationals to pay for Biden's infrastructure and social programs, the idea of ​​taxing latent capital gains, that is, earnings stored in large portfolios of stocks, resurfaced. Today the great tycoons do not pay taxes on those dormant profits on the pretext that they do not exist until they are collected.

The idea of ​​taxing that latent profit is on the table, Pelosi confirmed. "We will probably have a tax on the rich," he said on CNN.

Instead, Treasury Secretary Janet Yellen said: "I would not call that a tax on the rich." "But that would make it easier to obtain capital gains, which represent an essential part of the income of the richest people and which are currently not taxed."

The proposal targets people with assets greater than one billion dollars or who release income of more than 100 million dollars in three years, which means less than 1,000 taxpayers, according to The Wall Street Journal. Other media say there are about 700 billionaires.

For Pelosi, the tax would contribute to the treasury at least some 200,000 million dollars in 10 years.

Steve Wamhoff, director of the Institute for Fiscal and Economic Policy, said the levy " would create a huge gap in our tax code." However, he stressed that the current code "makes sense " for the middle class, whose properties tend to increase over the years.

"Nobody expects to pay taxes on the appreciation of the value of that asset before selling the property," he says. "But the situation is very different for billionaires who may choose to put most of their capital gains sleeping to avoid paying taxes."