Biden faces a problem with the Democrats on the infrastructure package deal

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Biden faces a challenge with the Democrats on the infrastructure package

President BidenJoe BidenBipartisan lawmaker urges Biden to evacuate Afghans who helped US forces Chris Wallace "immediately": backlash on Fauci emails "highly political" faces obstacles to reaching consensus among Democrats on an infrastructure package regardless of whether the legislation is bipartisan or if democrats make laws to theirs have.

Progressives are frustrated by Biden's ongoing talks with Republicans and want the White House to begin pursuing an infrastructure package that could go through the budget reconciliation process without GOP support.

However, some Democrats have raised concerns about aspects of the tax proposals Biden tabled to pay infrastructure bills, so even if the president doesn't focus on gaining Republican support, a deal won't necessarily go smoothly. Some Democrats have also raised issues with Biden's tax proposals that relate to regional interests.

For Biden, it will be important that the Democrats in Congress are united behind an infrastructure package as the party barely controls the House and Senate, and even if there is a bipartisan bill, Democratic support will be crucial as it may there is still opposition from some Republicans.

Biden and the leading Republican negotiator Sen. Shelley Moore CapitoShelley Wellons Moore CapitoOn The Money: Key Lessons From May Job Report | Biden rejects new GOP infrastructure offer as talks drag on Biden rejects new GOP offer as spending talks put a strain on OVERNIGHT ENERGY: Biden government seeks to reverse the withdrawal of Trump's endangered species | Putin Says Nord Stream 2 Pipeline Is Close To Completion | Climate a sticking point after the infrastructure talk by Biden and Capito MORE (R-W.Va.), Met on Wednesday and phoned on Friday. They plan to speak to each other again on Monday.

Capito made a new offer to Biden on Friday that included an additional $ 50 billion in spending over the Republicans' previous offer, but the proposal was unsatisfactory for the president, the White House press secretary said Jen PsakiJen PsakiOn The Money: Key takeaways from May Job Report | Biden rejects new GOP infrastructure offer as talks drag on Biden rejects new GOP offer as spending talks put a strain on OVERNIGHT ENERGY: Biden government seeks to reverse the withdrawal of Trump's endangered species | Putin Says Nord Stream 2 Pipeline Is Close To Completion | Climate a sticking point after the infrastructure talk by Biden and Capito MORE.

"The president thanked them for their efforts and goodwill, but also indicated that the current offer does not meet its goals of growing the economy, coping with the climate crisis and creating new jobs," Psaki said in a statement . "He indicated to Senator Capito that he would continue to hire a number of senators from both parties in hopes of reaching a larger package."

Progressive lawmakers are pushing Biden to end talks with Republicans. They stepped up urging Biden to move forward with a party bill after reports that the White House on Wednesday stressed options other than raising the corporate tax rate to pay a scaled-down version of Biden's original $ 2.3 trillion proposal . Specifically, the White House focused on Biden's proposal to introduce a minimum tax of 15% on the income of large companies, as reported to investors.

However, Biden risks losing progressive support for a proposal that is significantly different from its original proposal.

"Hm. When the GOP passed a bill to give businesses and the 1% a $ 1 trillion tax break without a single Democratic vote, I didn't hear my Republican colleagues say, “Wait. It has to be bipartisan. ‘Please don't tell me we can't use the same tools to help working people,” Sen said. Bernie SandersBernie SandersSEC removes Republican watchdog after progressive lobbying Biden, Capito speaks by phone and agrees to speak again on Monday Climate-aggressive take first steps against Biden amid mounting frustration MORE (I-Vt.) Tweeted on Friday.

Hm. When the GOP passed a bill to give businesses and the 1% a $ 1 trillion tax break without a single Democratic vote, I didn't hear my Republican colleagues say, "Wait. It has to be bipartisan." Please don't tell me we can't use the same tools to help working people.

– Bernie Sanders (@SenSanders) June 4, 2021

Rep. Jamaal Bowman (D-N.Y.) Said in a statement Thursday that he would struggle to vote for a smaller bill that would not reverse the 2017 Republican corporate tax cuts.

"$ 2 trillion was already the compromise," he said. "President Biden cannot expect us to vote for an infrastructure deal dictated by the Republican Party."

Other progressive groups have also raised concerns about the White House-Republican talks.

"We have no reason to believe that Republicans will come to the table in good faith, so I don't see any need to make concessions to Republicans right now," said Maura Quint, executive director of progressive group Tax March, said The Hill.

At the same time, Sen. Joe ManchinJoe ManchinBiden Turns Down New GOP Offer As Spending Talks Delay To The Hill's 12:30 PM Report: Senate Rules Change Biden's Calculus How Democrats Can Keep the Filibuster and Improve Voting MORE (D-W.Va.), An important moderate, said on Thursday that he wanted infrastructure measures to be non-partisan.

"We have to do something non-partisan," Manchin said on CNN.

It is unclear how long Biden's talks with Republicans about infrastructure will last; You have passed the informal Memorial Day deadline.

However, there are also some challenges for the Democrats when they go alone.

If the Democrats draft a bill that is not supposed to win Republican support, the differences between progressives and moderates are likely to become “more pronounced,” said Jorge Castro, a former Congressional tax advisor who now practices tax law at Miller & Chevalier.

Democrats can use Biden's $ 2.3 trillion American employment plan, which focuses on transportation and fighting climate change, and his $ 1.8 trillion American family plan, which focuses on issues such as education and childcare to combine into a reconciliation package. You can also try adding priorities that were not part of Biden's suggestions.

But the bigger the package, the more revenue will be needed to offset the cost.

Biden has proposed paying the establishment plan through tax increases for companies, and the families plan through tax increases for high-income individuals. While Democrats generally advocate higher taxes for the rich and corporate, some lawmakers have doubts about the specifics of Biden's plans.

Some have voiced concerns about Biden's proposal to raise the corporate tax rate from 21 percent to 28 percent, favoring a rate of 25 percent instead. And Agriculture-focused Democrats have raised concerns about Biden's proposal to tax capital gains in the event of death.

"Although I recognize that the proposal provides for some exceptions, the provisions could still lead to significant tax burdens for many family farms," ​​said the chairman of Parliament's Agriculture Committee David ScottDavid Albert ScottCivic Attorney Announces Offer for Texas Attorney General to Legislators, Activists Recall Civil Rights Symbols on Bloody Sunday Amazon Manager Sus Companies Over Racial Discrimination And Harassment Allegations MORE (D-Ga.) Wrote a letter to Biden this week.

There is also a debate among Democrats over whether infrastructure legislation should include lifting the state and local tax deduction (SALT) cap.

Democrats from high-tax countries like New York, New Jersey, and California want infrastructure laws to lift the cap, arguing that doing so would help their states and residents recover from the coronavirus pandemic. However, the removal was not included in Biden's proposals because of cost, and some progressives oppose removing the cap as it is believed that it will mainly benefit high-income households.

A number of polls have found public support for increasing taxes for the wealthy and businesses. Still, Democrats may be concerned that Republicans will argue in the 2022 midterm elections that the left has raised taxes on the middle class, though largely not.

"I think Democrats are nervous about going alone about a big tax hike, even if the tax hike only applies to rich people and businesses," said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

Despite some concerns raised by lawmakers, Congressional watchers believe the Democrats will ultimately reach an agreement on an infrastructure bill that will be supported by a majority of factions, although it is unclear exactly how big such an agreement will be.

"Joe Biden didn't get it to the point where he didn't have to show a bill," said Gleckman.

Frank Clemente, executive director of the left-wing Americans for Tax Fairness group, said that as an infrastructure package progresses, Democrats will be less concerned about the specific issues that affect them and more focused on the benefits of spending for their states and districts .

He said he believes Democrats will realize that their prospects in the mid-term elections depend on whether they have passed laws that greatly improve people's lives.

"If they fail to do that, their prospects at the ballot box will be much more limited," said Clemente.