White House aides and Democrats are continuing to make the case with the public, while assessing what is politically possible on Capitol Hill. Biden aides frequently cite non-partisan polling from CBS News, Monmouth, Morning Consult and ABC/Washington Post, which shows a majority of Americans support raising taxes on the rich or corporations. But there is no guarantee this level of public support will translate into Democratic lawmakers voting for a raft of tax increases ahead the 2022 midterms.
One Democratic operative who has worked with both the White House and lawmakers highlighted that many of the party’s lawmakers remember the 2010 elections, during which nascent Tea Party Republicans pummeled them for passing the Affordable Care Act and its accompanying tax increases. Democrats lost the House that November.
Representative Josh Gottheimer, a New Jersey Democrat who co-chairs the bipartisan Problem Solvers Caucus, has cautioned that there is little enthusiasm for tax increases among moderates. Gottheimer is also leading a charge to balance out some of the hikes with a more generous state and local tax, or SALT, deduction that had been limited under President Donald Trump.
Progressives in turn have become frustrated with the moderates, arguing that the coming year is the party’s best chance to roll back the Trump tax cuts and use that money to fund spending on items including child care, community college and universal preschool.
“The tax increases, in a way, are the most popular parts of the proposal,” said Chuck Marr, who served as an economic policy adviser to former Senate Majority Leader Tom Daschle, and now works for the left-leaning Center on Budget and Policy Priorities. “The public is so there.”
Marr said lawmakers need “more education” on the tax hikes.
“It’s critical that Democrats do all we can with this opportunity to make real progress for the American people,” said Senate Finance Committee Chairman Ron Wyden. “While conversations about infrastructure are ongoing, it’s critically important that we move forward.”
Elsewhere, Treasury Secretary Janet Yellen’s proposal to require at least a 15% global minimum corporate tax in international negotiations has received criticism from some Democrats who view that as too low.
“15% represents a weak lead and should be an absolute floor,” Representative Lloyd Doggett, a member of the Ways and Means Committee, said in a statement. “15% would be an unacceptably low minimum rate for multinational taxation.”
Neal, a Massachusetts Democrat, said he soon plans to schedule public hearings from stakeholders who would be affected by Biden’s infrastructure and tax proposals. Among the target groups are the AFL-CIO labor group, the U.S. Chamber of Commerce, the American Trucking Associations and the Teamsters union.
“I think they may get the broad support at the end of the day,” said Ben LaBolt, who worked in the Obama White House and remains close to several Biden aides. “If you are someone like Manchin, if this can be the ticket to getting a bunch of middle class union jobs in West Virginia that don’t require a four-year, or even two-year degree, this could have a major impact on the state.”
—With assistance from Kaustuv Basu.
This article was provided by Bloomberg News.