Tag: build back better
Budget Bill Revives Biden Vow To Tax Wealthy And Corporations

Budget Bill Revives Biden Vow To Tax Wealthy And Corporations

By Steve Holland

WASHINGTON (Reuters) -- President Joe Biden's campaign promise to increase taxes on corporations and the wealthy as part of a battle against glaring income inequality in the United States got an unexpected boost on Wednesday.

Early proposals to increase tax rates from Biden and his fellow Democrats hit a brick wall in Congress after Republicans -- and some Democrats -- opposed them. But a sudden reversal by West Virginia Democratic Senator Joe Manchin, a swing vote in the divided Senate, has given Biden's tax agenda a new lease on life.

The amount U.S. companies contribute to tax revenue that funds roads and schools has plummeted since the 1940s.

Biden has often said in office that companies should instead pay a "fair share," a contrast to deference to private markets begun by Republicans with former President Ronald Reagan's election in 1980, and buoyed by rounds of tax cuts and deregulation, by both parties.

The new compromise bill includes $430 billion in new spending on energy, electric vehicle tax credits and health insurance investments. It more than pays for itself by raising minimum taxes for big companies and enforcing existing tax laws, Manchin and Senate Majority Leader Chuck Schumer said in a statement.

Biden said during a speech on Thursday that the deal would "for the first time in a long time begin to restore fairness to the tax code - begin to restore fairness by making the largest corporations in America pay their fair share without any new taxes on people making under $400,000 a year."

The bill would impose a 15 percent minimum tax on corporations with profits over $1 billion, raising $313 billion over a decade, they wrote. Companies could claim net operating losses and tax credits against the 15 percent.

The U.S. corporate tax rate dropped to 21 percent from 35 percent after a 2017 tax cut pushed by then-President Donald Trump and his fellow Republicans, but many companies pay much less than that, and some of the largest pay no federal taxes, research groups including the Institute on Taxation and Economic Policy have found.

Biden proposed raising that rate to 28 percent last year as part of an infrastructure spending bill, but the tax component was struck from the bill.

The new Manchin-Schumer bill also aims to close the so-called carried interest loophole, long a goal of Democrats.

Carried interest refers to a longstanding Wall Street tax break that let many private equity and hedge fund financiers pay the lower capital gains tax rate on much of their income, instead of the higher income tax rate paid by wage earners.

Eliminating the loophole would raise $14 billion, the senators say.

Schumer said he expected the Senate to vote on the legislation next week, to "lower prescription drug prices, tackle the climate crisis with urgency and vigor, ensure the wealthiest corporations and individuals pay their fair share in taxes, and reduce the deficit."

The Manchin-Schumer measure is substantially smaller than the multi-trillion-dollar spending bill Democrats had envisioned last year.

But it still represents a major advance for Biden's policy agenda ahead of midterm elections on Nov. 8 that could determine whether Democrats retain control of Congress.

It came just as Biden celebrated Senate passage of a bill aimed at boosting the U.S. semiconductor industry, another key priority of his administration, and as he struggles with low job approval ratings and ebbing support from his own party after a series of conservative Supreme Court rulings.

"This bill will reduce the deficit beyond the record-setting $1.7 trillion in deficit reduction we have already achieved this year, which will help fight inflation as well," Biden said in a statement.

"And we will pay for all of this by requiring big corporations to pay their fair share of taxes, with no tax increases at all for families making under $400,000 a year," he said.

(Reporting By Steve Holland; editing by Heather Timmons and Mark Porter)

Jen Psaki Shuts Down Reporter Pushing Right-Wing Lies On Build Back Better (VIDEO)

Jen Psaki Shuts Down Reporter Pushing Right-Wing Lies On Build Back Better (VIDEO)

A reporter was silent after pushing right-wing talking points during the White House’s daily press briefing and being asked to explain her question. The Q&A was so disturbing one well-known political scientist weighed in on social media to declare the White House press corps an “embarrassment.”

“Just a quick question on inflation,” the unnamed reporter began as she asked her question on the administration’s plan to strengthen the social safety net and grow jobs. “Many believe that government spending is a big factor in the current inflation levels. Can you speak to concerns that spending plans that come out of Build Back Better aren’t paid for, and so could mean higher deficits and more inflation in the future.”

A reporter was silent after pushing right-wing talking points during the White House’s daily press briefing and being asked to explain her question. The Q&A was so disturbing one well-known political scientist weighed in on social media to declare the White House press corps an “embarrassment.”

“Just a quick question on inflation,” the unnamed reporter began as she asked her question on the administration’s plan to strengthen the social safety net and grow jobs. “Many believe that government spending is a big factor in the current inflation levels. Can you speak to concerns that spending plans that come out of Build Back Better aren’t paid for, and so could mean higher deficits and more inflation in the future.”

Psaki, a little stunned, confirmed she heard correctly: “Aren’t paid for? Build Back Better is paid for.”

The reporter was silent. As time moved on, so did Psaki.

“Entirely,” she added, definitively.

“Okay,” replied the reporter, apparently out of facts and with little understanding of what she was asking. “Can you speak to the concerns that are coming in that it’s not, actually?”

“Who are the concerns from though?” Psaki asked.

Silence again.

“Who’s saying it’s not paid for?” Psaki pressed.

More silence.

“Because there have been a range of economists saying it’s entirely paid for, and that has been a priority for the President. It has also been concluded by a number of Nobel laureates and experts from a range of economic experts on the outside that it will not contribute to inflation. So those are the global experts that we would point to, but there may be others suggesting something else, but I don’t know who those people are,” she said, allowing the reporter to offer a different response, to possibly retain her dignity.
“So if those bills do pass it will not raise taxes?” the reporter asked, which is an entirely different question.

“Well, something being entirely paid for means that part of that is the highest income Americans highest that companies would be asked to pay a little bit more. That has been part of the proposal and part of reforming the tax system to make it more fair,” Psaki explained.

Watch the entire exchange below:

Republished with permission from Alternet

West Virginia Steelworkers Accuse Manchin Of 'Turning His Back' On Them

West Virginia Steelworkers Accuse Manchin Of 'Turning His Back' On Them

Ed Barnette long ago realized that affordable child care and paid sick leave, among other resources, would be essential to helping West Virginians build better lives and save what’s left of the middle class.

He just never expected that when America was finally on the cusp of providing these essentials, West Virginia’s Democratic senator would join pro-corporate Republicans in blocking the way.

But that’s exactly what happened. In thwarting the Build Back Better legislation, Senator Joe Manchin turned his back on the working families whose support catapulted him to power in the first place.

“It’s almost like he forgot where his roots are,” fumed Barnette, president of United Steelworkers (USW) Local 5668, which represents hundreds of workers at the Constellium plant in Ravenswood, West Virginia. “He comes from a blue-collar state. When you say ‘West Virginia,’ the first thing you picture is a worker with a hard hat.”

“Surely, he won’t do it,” Barnette recalled saying to himself in the days before Manchin decided to withhold his vote and block the bill. “He did, and I just thought, ‘Damn it! You’re supposed to be working for us.’”

Barnette rejoiced last fall when Congress passed a historic, $1 trillion infrastructure bill. Like other states, West Virginia urgently needs improvements to its roads and bridges, schools and airports, energy systems, locks and dams, and communications networks.

But Barnette understands that the infrastructure legislation will have the biggest impact—and create the greatest number of manufacturing and construction jobs—only in conjunction with the $2 trillion Build Back Better bill.

Build Back Better would provide access to affordable child care and pave the way for more parents, especially more single parents, to enter the workforce. It would ensure workers receive up to four weeks of paid family medical leave, so they could battle life’s challenges while continuing to support their families.

And it would provide universal preschool for three- and four-year-olds, putting all of America’s children on the road to productive lives.

“It will do nothing but help the working people and middle class of West Virginia,” said Barnette, citing West Virginia’s high poverty rate and population loss.

Just as important, Build Back Better would boost funding at the U.S. Occupational Safety and Health Administration (OSHA), positioning the agency to better address safety risks workers face every day as well as crises like the COVID-19 pandemic. Among other enhancements, the additional resources would enable the agency to hire more inspectors so the agency can investigate additional complaints, develop new safety standards and save lives.

Build Back Better also would increase the penalties that employers face for violations, making them more likely to address hazards proactively. The current low penalties merely encourage corporations to risk workers’ lives.

“I definitely think we need a stronger OSHA,” Barnette said. “It’s the difference between life and death with some employers.”

In addition, the legislation would incentivize the development of emerging industries, like clean energy and electric vehicle production, that would help to revitalize American manufacturing, create good-paying jobs and better position the nation to lead the world economy.

Whether it’s assembling electric vehicles, making batteries or manufacturing the components for solar panels, West Virginia has union workers with the work ethic and enthusiasm to get these industries up and running, noted Dallas Elswick, a former chemical worker and USW member from Nitro, West Virginia.

"The union workers made this country,” Elswick said. “Everybody knows that. And there’s a need for development here. There’s a big need.”

The House passed Build Back Better in November. The bill needed the support of all 48 Democrats and two Independents to pass the Senate, so President Joe Biden and congressional leaders worked tirelessly to get Manchin on board.

Senator Charles Schumer, the Senate majority leader, repeatedly spoke with him. House Speaker Nancy Pelosi talked with him, too.

Biden spoke with Manchin by phone and had him over to the White House. Biden also went so far as to host Manchin at his Delaware home to talk through the transformative nature of the bill, even though the legislation’s potential to level the playing field for working Americans is clear for all to see.

He abandoned single parents, unable to afford child care, to poverty. He threw seniors, struggling to pay for prescriptions and health care, under the bus. He slammed the door on workers eager for new industries and jobs.

Barnette and Elswick are among millions in West Virginia and around the country calling on Manchin to do the right thing and embrace Build Back Better.

“We may not get an opportunity to do this ever again,” Elswick said of the sweeping changes offered by Build Back Better. “For him to do what he did is unbelievable.”

Tom Conway is the international president of the United Steelworkers Union (USW).

This article was produced by the Independent Media Institute.T

joe manchin joe biden

Biden, Manchin Had Long Chat About Spending Bill After Manchin Killed It

By Kanishka Singh

(Reuters) -U.S. President Joe Biden and Senator Joe Manchin spoke about the "Build Back Better" bill a day after the conservative Democratic senator publicly rejected the president's social spending plans, a White House adviser said on Friday.

"He (Biden) has some confidence about that (bill), including discussions he has had with Senator Manchin," Jared Bernstein, a member of the White House council of economic advisers, said in an interview with CNN on Friday.

"The president and Senator Manchin - the day after that announcement where the senator said he couldn't vote for the bill as it was - they were talking again."

Manchin, a conservative Democratic senator, rejected the president's Build Back Better plan earlier this month in a move that imperils the legislation.

Manchin's move prompted investment bank Goldman Sachs to lower its forecasts for U.S. economic growth. Manchin's rejection of the bill threatened to scuttle hundreds of billions of dollars in funding for measures to fight climate change and meet the Biden administration's climate goals.

Manchin has expressed concerns about a number of proposals in Biden's signature domestic policy bill, including multiple climate proposals and extending monthly child tax credit payments.

Biden told reporters after Manchin's rejection that he and the senator were "going to get something done" on the legislation.

Manchin's support is crucial in the Senate chamber where the Democrats have the slimmest margin of control and Republicans are united in their opposition to the bill. Senate Majority Leader Chuck Schumer has said the chamber would vote on a package in early 2022.

U.S. Representative Pramila Jayapal, a leading liberal House Democrat, has asked Biden to continue focusing on the social spending legislation and urged him to use executive action despite Manchin's public rejection of the plan.

(Reporting by Kanishka Singh in Bengaluru; Editing by Louise Heavens and Alex Richardson)