Biden’s Sweeping — and Fluid — Tax Plans Are Making Some Congressional Democrats Nervous
President Biden’s desire to offset more than $4 trillion in spending proposals with higher taxes is struggling to gain momentum in Congress.
Pockets of skepticism have emerged within Biden’s party over White House plans to raise the corporate tax rate, revamp the international tax system and double tax rates on wealthy investors, among other measures critical to the administration’s plans. The party faces regional divides over taxes as well, with farm-state Democrats skittish about taxes on heirs and coastal Democrats demanding the repeal of limits on state and local tax deductions, which would amount to an expensive tax cut that would require higher taxes elsewhere.
The unease could have major implications for his domestic agenda, as Biden has said he does not want new spending to be added to the deficit. He has insisted that changes to the tax code must be made to accommodate the new spending, but said he is flexible about how changes are designed. The White House is trying to whip up momentum for the plans, and Biden plans to meet with numerous lawmakers this week in an effort to speed up talks.