In spite of Trimmed Down $1.75T Framework, Democrats Reached ‘Historic’ Deal: Biden
*(Via Business Insider) – The White House on Thursday unveiled a $1.75 trillion framework for President Joe Biden’s social-spending plan, dramatically curtailing its economic ambitions in an effort to appease the centrist holdouts Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona and break a logjam in negotiations bogging down the party.
The agreement would encompass $1.75 trillion in spending over 10 years — half of Biden’s initial proposal for the Build Back Better plan. Some key provisions include:
The plan would be paid for with a collection of tax hikes on rich Americans. Measures include a 15% corporate minimum tax, a tax on companies that buy back their own stock to boost share prices, and a new 5% surtax for Americans earning at least $5 million in income.
The sum is far less than most Democrats had envisioned spending on a package that’s supposed to be the centerpiece of Biden’s economic agenda. Progressives, chiefly led by Sen. Bernie Sanders, initially laid out a $6 trillion budget in June. Less than a month later, Senate Democrats struck a deal on a $3.5 trillion budget plan, which they advanced in August by relying on only Democratic votes over unanimous Republican opposition.
But the $1.75 trillion plan reflects the painful sacrifices Democrats are making to win support from Manchin and Sinema, a pivotal pair of holdouts who they can’t lose in the 50-50 Senate. Manchin has tried to limit the reach of new social-benefit programs, saying they could cause American society to slip into an “entitlement mentality.”
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