Democrats have planned to raise taxes on wealthy Americans, corporations, and investment income in order to pay for their sprawling social spending package, but according to a report in The Wall Street Journal, Sen. Kyrsten Sinema (D-AZ) opposes the proposed tax hikes.
“The Arizona Democrat has told lobbyists that she is opposed to any increase in those rates, according to a person familiar with her remarks, but her stance is now pushing Democrats to more seriously plan for a bill that doesn’t include those major revenue increases,” reports The Journal.
The outlet adds that increased tax enforcement by the Internal Revenue Service is one potential path to offset the cost of the reconciliation bill, which funds liberal priorities like universal pre-k, expanded healthcare, climate mitigation initiatives, and paid family leave. President Joe Biden has recently told Democrats that the final bill will likely cost somewhere between $1.75 and $2 trillion, depending on what programs are ultimately included. Sinema and West Virginia Senator Joe Manchin blocked a bigger bill priced at $3.5 trillion last month.
The U.S. government could also move to prevent American companies from collecting their profits overseas, an accounting practice that some experts think is akin to tax avoidance.
The Journal adds:
In the House, Democrats have proposed raising the corporate tax rate to 26.5% from 21%, moving the top individual rate to 39.6% from 37% and increasing the top capital-gains rate to 28.8% from 23.8%. Their plan would also add a 3% surtax on income above $5 million.
