Tag Archives: Build Back Better

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Democrats set to play hardball with Manchin

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Senate Democrats are signaling they plan to take more of a hardball approach to pressuring Sen. Joe ManchinJoe ManchinOn The Money — Dems lay blame for Build Back Better blowup McConnell: Manchin’s opposition to Biden plan ‘great shot in the arm for the country’ Harris says ‘stakes are too high’ for Build Back Better to be about Manchin MORE (D-W.Va.) to support their climate and social spending agenda after months of kid-glove treatment failed to deliver his vote.

Democrats are threatening to drive a wedge between Manchin and his many lower-income constituents who stand to reap billions of dollars in federal benefits if Build Back Better passes, including an enhanced child tax credit, lower Medicare-negotiated prescription drug prices and subsidies to cover the cost of childcare.  

Senate Majority Leader Charles SchumerChuck SchumerManchin says he will not vote for Build Back Better: ‘This is a no’ Senate confirms 40 judges during Biden’s first year in office, the most since Reagan Cruz to get Nord Stream 2 vote as part of deal on Biden nominees MORE (D-N.Y.) on Monday said Manchin will have to repeatedly defend his opposition to these popular programs by voting on the floor and took a subtle shot at his colleague for trying to dictate national policy through an appearance on “Fox News Sunday” over the weekend.

Democratic aides say that Manchin can expect more tough treatment from Schumer and other Democratic lawmakers who are now under new pressure from the party’s base for failing to deliver on the “big, bold” agenda they promised earlier this year.

“He has had absolutely no pressure,” said one Democratic aide, citing Manchin’s friendly meetings with the at the White House and at Biden’s home in Delaware this fall that failed to produce results.

“Biden’s got to grab him by the lapels and say, ‘Listen, this ends now,’” the aide added, warning there’s little prospect of passing another piece of major legislation before the 2022 midterms if Build Back Better fails to pass.

Democratic senators have said for months they were reluctant to apply too much pressure on Manchin for fear that it might backfire and only goad him to dig in his heels more firmly against progressive priorities such as major new investments for renewable energy and expanded Medicare benefits.

There was also the looming threat that Manchin might leave the caucus and declare himself an independent. Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMcConnell: Manchin’s opposition to Biden plan ‘great shot in the arm for the country’ Ocasio-Cortez: Democrats need to to ‘crack down’ on ‘old boys club’ in Senate The day democracy almost died MORE (R-Ky.) told reporters before the break that he would love to have Manchin join his caucus, though he acknowledged it wasn’t a likely possibility.

But now Biden, Schumer and other Democrats risk looking ineffective after Manchin flatly spurned their many entreaties with his bluntly stated opposition to Build Back Better on Fox News.

“He’s going to blow up the president’s agenda so I think you have to play hardball but there are different ways to play hardball,” said Steve Jarding, a Democratic strategist who formerly advised the Democratic Senatorial Campaign Committee.

“He’s making them looking ineffective,” he added.

On Sunday, White House press secretary Jen PsakiJen PsakiStaffer who had contact with Biden tests positive for COVID-19 McConnell: Manchin’s opposition to Biden plan ‘great shot in the arm for the country’ Harris says ‘stakes are too high’ for Build Back Better to be about Manchin MORE released a blistering statement that took Manchin to task for backing out of a deal Biden thought he had agreed to in October.

She said Manchin would have to explain his opposition to the bill to “families paying $1,000 a month for insulin,” to “two million women who would get the affordable day care they need to return to work” and to the “millions of children who have been lifted out of poverty, in part due to the Child Tax credit,” which expired last week.

A day later, the White House was taking a much softer approach, with Psaki emphasizing Biden’s desire to work with Biden at the daily briefing.

Biden met with Manchin at the White House in late September and late October as well as at the president’s home in Wilmington, Delaware, but without having any major results to show for those meetings.

The White House said that Manchin signed off on a $1.75 trillion framework at the meeting in Delaware, which Schumer also attended, but Manchin this week disputed he had agreed to anything.

In a “Dear Colleague” letter circulated Monday, Schumer took at not-so-subtle jab at Manchin.

“Senators should be aware that the Senate will, in fact, consider the Build Back Better Act, very early in the new year so that every Member of this body has the opportunity to make their position known on the Senate floor, not just on television,” Schumer vowed.

The Democratic leader warned that he would force Manchin to vote multiple times against Biden’s top priorities to hammer home the message that the West Virginia centrist is standing in the way of reforms that are designed to help low-income people in his home state.

“We are going to vote on a revised version of the House-passed Build Back Better Act – and we will keep voting on it until we get something done,” Schumer wrote.

A second Democratic aide said Schumer’s threat was remarkable because only days ago he pushed back on members of his caucus such as Senate Majority Whip Dick DurbinDick DurbinBiden’s relationship with ‘Joe-Joe’ Manchin hits the rocks Democrats mull hardball tactics to leapfrog parliamentarian on immigration Democrats end year reopening old wounds MORE (D-Ill.) who were pushing to force Manchin to take a vote on Build Back Better before Christmas.

The aide said Schumer knows many progressives in his party are angry over the failure to deliver Manchin’s vote and doesn’t leave a potential challenger any openings ahead of his re-election campaign in New York next year.

“It’s performative,” said the aide. “It’s hard not to view this through the lens of his coming primary.”

Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezOn The Money — Dems lay blame for Build Back Better blowup Hillicon Valley — Dems press Amazon on warehouse collapse Democrats press Amazon about fatal warehouse collapse MORE (D-N.Y.), a leading House progressive who has often criticized Manchin, in August did not rule out a primary challenge against Schumer.

Ocasio-Cortez on Monday said Manchin committed “an egregious breach of the trust of the president” and said “it’s an outcome that we had warned about well over a month ago.”

“Of course we have every right to be furious with Joe Manchin but it’s really up to leadership in the Democratic Party who made the decision to get us to this juncture and how we’re going to move forward and I think right now that the Democratic leadership as a very large number of tools at their disposal,” she said on MSNBC’s “Morning Joe.”

“And it’s really about time that we take the kid gloves off,” she added.

Senate progressives have also vented their frustration since Manchin told Fox host Bret Baier that he is a “no” on Build Back Better.

“I suspect that the people of West Virginia are like people in every other state. They want to lower prescription drug costs. They want Medicare to cover vision, hearing and dental. They want to continue $300 per child monthly payments. They want the wealthy to pay their fair share,” Senate Budget Committee Chairman Bernie SandersBernie SandersEquilibrium/Sustainability — Underground abortion network links to Mexico The Hill’s 12:30 Report: Manchin explains BBB opposition, slams Dems Republicans, ideology, and demise of the state and local tax deduction MORE (I-Vt.) tweeted Monday.

He reposted an interview he did with CNN’s “State of the Union” in which he called out Manchin for failing to meet his constituents needs.

“Mr. Manchin says he’s representing the people of West Virginia,” Sanders said. “I told Manchin, by the way, I’ll pay for the damn poll in West Virginia on those issues. See how the people of West Virginia feel.”

Sen. Elizabeth WarrenElizabeth WarrenThe politics of an independent Fed Hillicon Valley — Dems press Amazon on warehouse collapse Politicians and celebrities who have tested positive for COVID-19 ahead of the holidays MORE (D-Mass.), another leading Senate progressive, applauded Schumer’s promise to force Manchin to vote on Build Back Better, potentially multiple times, even though he told Fox: “I tried everything possible. I can’t get there.”

“The American people expect the Senate to deliver on the Build Back Better plan AND protect the right to vote. Inaction is not an option: our democracy is under assault and our economy is not working for working people. Enough talk. It’s time to vote,” she tweeted. 



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US

White House blasts Manchin’s “inexplicable reversal” on Build Back Better Act

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Washington — White House press secretary Jen Psaki sharply criticized Democratic Senator Joe Manchin of West Virginia for his decision to withdraw his support for President Biden’s Build Back Better Act, saying Manchin’s comments Sunday morning contradicted what he had told the president.

On “Fox News Sunday,” Manchin said he could not support the president’s roughly $1.75 trillion plan, which includes provisions to fight climate change, expand the social safety net, increase taxes on the wealthy and more.

“I cannot vote to continue with this piece of legislation. I just can’t. I’ve tried everything humanly possible. I can’t get there,” Manchin said, citing concerns over inflation, the national debt and the COVID-19 pandemic that he explained in a lengthy statement following his television appearance.

In response, Psaki issued a blistering statement of her own, accusing Manchin of violating a commitment to continue engaging in talks over the legislation. “Senator Manchin’s comments this morning on FOX are at odds with his discussions this week with the President, with White House staff, and with his own public utterances,” Psaki wrote.

Last Tuesday, Psaki said, Manchin brought Mr. Biden an outline of a plan he could support, which “was the same size and scope as the President’s framework, and covered many of the same priorities.” Psaki said the White House “believed it could lead to a compromise acceptable to all,” and that Manchin “promised to continue conversations in the days ahead, and to work with us to reach that common ground.”

If Manchin’s comments Sunday signify an end to those talks, Psaki wrote, “they represent a sudden and inexplicable reversal in his position, and a breach of his commitments to the President and the Senator’s colleagues in the House and Senate.”

Manchin informed the White House and congressional Democratic leadership of his plans to come out against the legislation before his appearance on Fox News, a person familiar with his actions said Sunday.

The press secretary also addressed Manchin’s objections on inflation, the deficit and the climate provisions in the bill, saying he was misrepresenting the impact that the Build Back Better Act would have in each area.

“Just as Senator Manchin reversed his position on Build Back Better this morning, we will continue to press him to see if he will reverse his position yet again, to honor his prior commitments and be true to his word,” Psaki said, adding that “[t]he fight for Build Back Better is too important to give up. We will find a way to move forward next year.”

Whether Manchin’s comments Sunday morning represent an outright end to talks over the Build Back Better Act or were simply a negotiating maneuver remains to be seen. People familiar with his thinking told CBS News that he remains committed to working on provisions in the bill with more targeted legislation  through regular legislative order. 

“I also think he could find a way to yes on a version of it,” said one of the people. “I don’t see [Build Back Better] as dead dead.”

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US

GOP rallies around Manchin, Sinema

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Republicans are rallying around Sens. Joe ManchinJoe ManchinSinema fundraising in Europe as reconciliation talks ‘ongoing’: report Warren: Billionaires who ‘have enough money to shoot themselves into space’ will pay for reconciliation bill To Win 2022: Go big on reconciliation and invest in Latinx voters MORE (D-W.Va.) and Kyrsten SinemaKyrsten SinemaSinema fundraising in Europe as reconciliation talks ‘ongoing’: report Warren: Billionaires who ‘have enough money to shoot themselves into space’ will pay for reconciliation bill To Win 2022: Go big on reconciliation and invest in Latinx voters MORE (D-Ariz.), the centrists who are in a fierce battle with progressives in their party.

Senate Republicans, despite having many policy differences with Manchin and Sinema, are singing their praises, knowing that they will be key to stopping or slowing President BidenJoe BidenSinema fundraising in Europe as reconciliation talks ‘ongoing’: report Mexico urges more US investment in Central America to stem migration flows Trump calls into Take Back Virginia Rally to hype Youngkin MORE’s ambitious agenda.

Both Democrats would be top Republican targets in 2024 if they decide to run for re-election, and GOP leaders are usually loath to offer praise to such lawmakers.

But in a 50-50 Senate, where Manchin and Sinema can make or break Biden’s policy goals, many Republicans hail them as saviors.

“I tell them I think they’re saving the county,” said Senate Minority Whip John ThuneJohn Randolph ThuneMcConnell gets GOP wake-up call Democrat on controversial Schumer speech: Timing ‘may not have been the best’ Most Senate Republicans don’t want to see Trump run again MORE (R-S.D.).

“I know they’re getting beat up by their leadership and their base and everything else but I think they’re in a really good place right now because they’re in a position to influence and shape what comes out of this,” he added.

When Manchin told reporters recently that he didn’t want to spend more than $1.5 trillion on Biden’s “Build Back Better” agenda because he didn’t want “to change our whole society to an entitlement mentality,” it was music to the ears of GOP colleagues.

Thune said both Manchin and Sinema are “playing an incredibly constructive role in trying to make the country stronger, not weaker.”

Progressives see Manchin’s and Sinema as stubborn opponents, and disloyal to their party and president.

Sen. Bernie SandersBernie SandersSanders blaming spending bill delay on corporate lobbying McConnell-aligned group targeting Kelly, Cortez Masto and Hassan with M ad campaign Democrats struggle to gain steam on Biden spending plan MORE (I-Vt.), who says Democrats need to spend a minimum of $3.5 trillion on expanded Medicare benefits, expanded childcare and fighting climate change, says Manchin is not helping his constituents.

“You should go to West Virginia, ask working families whether they think it’s a good idea that older people — West Virginia’s an older state — have teeth in their mouths, have hearing aids, have eyeglasses,” Sanders said, offering biting criticism of the West Virginia senator.

“Ask working families whether or not he’s a hero when people are paying 20, 25 percent of their income for childcare. Ask people if he’s a hero in terms of not moving aggressively to [address] what the scientists tell us is an existential threat to the planet,” he added.

Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCapitol Police mandating vaccines for Dignitary Protection Division agents: report The Hill’s 12:30 Report – The Conference of Presidents of Major Italian American Organizations – 90-year-old ‘Star Trek’ actor describes space visit McConnell-aligned group targeting Kelly, Cortez Masto and Hassan with M ad campaign MORE (R-Ky.) told Republican colleagues at a meeting last week that one reason for why he agreed to a deal with Senate Majority Leader Charles SchumerChuck SchumerTo Win 2022: Go big on reconciliation and invest in Latinx voters McConnell-aligned group targeting Kelly, Cortez Masto and Hassan with M ad campaign Green group pressures Sinema to spell out climate agenda MORE (D-N.Y.) on a short-term debt-limit increase was because he feared that Manchin and Sinema would be under growing pressure from fellow Democrats to weaken the filibuster to stave off a credit crisis.

McConnell also reached out to share his plan to solve the debt standoff with Manchin and Sinema before unveiling it publicly, according to a Senate GOP aide.

Manchin, asked about that by reporters last week, denied that he knew the details of McConnell’s proposed two-month debt-limit extension ahead of its public release.

Sen. Lisa MurkowskiLisa Ann MurkowskiMcConnell gets GOP wake-up call Using shared principles to guide our global and national energy policy Alaska man accused of threatening senators to remain detained ahead of trial MORE (R-Alaska), an important GOP swing vote, raised concerns at last week’s Tuesday GOP conference lunch that the debt-limit stalemate was putting pressure on Manchin and Sinema to gut the filibuster, according to two GOP sources familiar with the meeting.

Even sharp-tongued conservatives are offering complimentary words for the two centrists. Sen. Ted CruzRafael (Ted) Edward CruzMcConnell gets GOP wake-up call Equilibrium/Sustainability — Presented by Altria — Michigan leaves majority-Black city with lead-contaminated taps for three years YouTube confirms it picked kids featured in Harris video MORE (R-Texas) even referred to them by their first names.

“I’m glad there are at least a couple of Democrats in the Senate conference who are not willing to blindly sign on to Bernie Sanders’s socialist budget,” he said. “I’m glad to see Joe and Kyrsten standing up to the radical left. They’re demonstrating some real courage because the hard left is pounding them.

“I’m glad to see them demonstrating the strength of character to say, ‘This is not what the people of West Virginia want, this is not what the people of Arizona want,’” he added.

Senate Republicans are framing their messaging strategy around concerns that Manchin has expressed about rising inflation, the global competitiveness of U.S. companies, the future of fossil fuels and the lack of bipartisanship behind the proposed $3.5 trillion budget reconciliation proposal.

Republican have seized on Manchin’s worries about inflation and made it a regular talking point, even though experts such as Federal Reserve Chairman Jerome Powell say that higher-than-average inflation is temporary and likely to ease by next year.

Cruz and other Republicans say they agree more with Manchin, who has pointed to rising prices at Dollar General stores in West Virginia as a major problem. Manchin’s comments are also helpful for Republicans who are using rising prices to attack Biden.

“I think he is absolutely right,” Cruz said of Manchin’s inflation fears. “We’re seeing an inflation bomb going off across this country. Hard-working Americans are seeing the cost of just about everything going up. We’re seeing the cost of gasoline go up, the cost of food go up, the cost of rent go up, the cost of lumber go up, the cost of homes go up.”

Sen. Rick Scott (R-Fla.) joked that he’s accused Manchin of stealing his message.

“I’ve accused him of plagiarism,” he quipped. “I’m glad that Sen. Manchin is talking about that, I hope he keeps talking about it.”

Sen. Thom TillisThomas (Thom) Roland TillisAdvocates frustrated by shrinking legal migration under Biden Key debt-limit vote sparks major fight among Senate Republicans Defense & National Security — Troops secretly train with Taiwan as tensions with China continue MORE (R-N.C.) said he agrees with Manchin that the country is at a “fiscal tipping point” because “we’ve just got so much money flooding the system.”

“I know it’s tough but I think he’s standing on principle. I think the same of Sen. Sinema,” he said.

Republicans leapt to Sinema’s defense earlier this month when activists followed her into a bathroom at Arizona State University, where she lectures, to pressure her to support Biden’s full agenda.

Sen. Mitt RomneyWillard (Mitt) Mitt RomneyMcConnell gets GOP wake-up call Democrat on controversial Schumer speech: Timing ‘may not have been the best’ The Biden-Harris train wreck may have its savior: 2024 GOP nominee Donald Trump MORE (R-Utah), who worked closely with Sinema on the $1.1 trillion bipartisan infrastructure package passed by the Senate in August, called the tactics “inexcusable.”

Democrats also defended Sinema, but some of them also defended the activists filming here. Biden said he disagreed with such tactics but also said they came with being in the arena of politics, a notably less tough tone than Romney’s.

“We don’t always see eye to eye, but I respect her,” the Utah senator tweeted. “The harassment she has endured is inexcusable and disheartening. It reflects so poorly on the bullies and abusers.”

 



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Science

The Budget Bill Could Place A Fee On Methane, And Big Oil Is Lying Like Hell To Stop It

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The $3.5 trillion budget reconciliation package at the center of a heated congressional debate this week represents a unique opportunity for Democrats to advance ambitious climate policies. Among its provisions is a fee on methane, an extremely potent greenhouse gas released from a number of sources, including oil and gas operations.

The oil and gas industry is desperately fighting this proposed fee by reupping old, disingenuous claims about having an “economic incentive” to curb methane, since it is the main component of natural gas and supposedly valuable to fossil fuel producers. In other words: Don’t worry about our emissions, we’ll take care of them ourselves. 

But in closed-door meetings, industry leaders have admitted the opposite: Methane gas has very little value. That fact undercuts the idea that it’s in the industry’s best interest to capture that gas and sell it rather than vent and leak it into the atmosphere.

Sen. Sheldon Whitehouse (D-R.I.) and other progressives introduced a provision in March that would assess a fee of $1,800 per ton of methane pollution beginning in 2023, with a 2% increase above inflation each subsequent year. In September, the House Energy and Commerce Committee voted to include the methane fee in the reconciliation bill, despite vehement Republican opposition. 

Methane is 86 times more powerful than CO2 over 20 years in the atmosphere and accounts for approximately one-fifth of human-caused planetary warming. Atmospheric concentrations have spiked more than 150% since 1750. 

Over the last three months, Exxon Mobil, the American Petroleum Institute and other fossil fuel interests have flooded Facebook with ads opposing the budget bill and its climate provisions. Exxon alone has spent $2 million on Facebook ads over the last three months, CNBC reported this week. 

In a letter earlier this month to leaders of the Senate Environment and Public Works Committee, the American Petroleum Institute and more than 100 other groups outlined their opposition to what they described as an “unreasonable, punitive” fee on methane pollution that “could jeopardize affordable and reliable energy with likely little reduction in greenhouse gas emissions.”

The groups insisted fossil fuel interests are committed to mitigating methane.

“Not only is this in the best interest of the environment, it’s in the best economic interests of the nation’s oil and natural gas companies as any methane lost to the atmosphere is product that can’t be used to power our nation’s electric utilities, heat our homes and businesses, fuel our manufacturing facilities, create chemicals used in goods that make us healthier, safer, and more productive, manufacture our steel, or help produce the foods that feed our families,” they wrote. 

In private, however, oil lobbyists have described methane as an unwanted waste product. 

“This pesky natural gas, to me, it’s almost like produced water,” Ron Ness, president of the North Dakota Petroleum Council, said at a 2019 gathering of industry groups. “The value of it is very minimal. But you’ve got to manage your gas to produce your oil.”



In this Oct. 22, 2015, file photo, workers tend to oil pump jacks behind a natural gas flare near Watford City, North Dakota. 

The New York Times first reported Ness’ comments last year after obtaining a recording of the industry meeting organized by the Independent Petroleum Association of America. HuffPost recently obtained a recording and a transcript of the discussion from a source who asked not to be identified. 

At the event, Ness described methane emissions and flaring as a “serious threat” to the fossil fuel industry’s public image and long-term future.

“I’ll tell you, there’s not a more difficult interview to do in anything related to oil and gas than when you’re talking on TV, and they put up a 5,000 barrel a day Bakken well with a flare up and out of it,” Ness said. “Or when all the fishermen across North Dakota don’t need to use their lights on their boats on Lake Sakakawea now because the flares are illuminating the lake.”

“We got to go to work,” he added. “We can’t be the deniers anymore.”

“I cannot emphasize enough what [Ness] was saying about emissions, and particularly flaring,” said Pete Obermueller, president of the Petroleum Association of Wyoming. He noted that a Wyoming legislator who he “would assume to be pretty friendly” to industry had recently posted to Facebook about driving through a stretch of the oil-rich Permian Basin and urged Wyoming residents to be careful what they wish for in terms of fossil fuel development. 

Ness’ view that methane is of little value didn’t keep the North Dakota Petroleum Council from signing on to the September letter in which dozens of groups touted the “economic incentive” to slash emissions. Neither the North Dakota Petroleum Council nor the Independent Petroleum Association of America responded to HuffPost’s request for comment.



A pump jack extracts oil from beneath the ground on the Fort Berthold Indian Reservation, with Lake Sakakawea in the background, east of New Town, North Dakota. 

The oil industry has long fought efforts to regulate methane by arguing that the gas is valuable. When the Obama administration finalized rules to rein in methane emissions on federal lands in 2016, the Independent Petroleum Association of America published a document “debunking” several claims about methane pollution, including that “large quantities of natural gas are wasted during oil and gas production.”

“This claim is just not in line with the science,” the IPAA wrote. “Producers have every incentive to capture and sell as much of their product as possible to consumers, rather than letting it escape in the atmosphere.”

In fact, drillers are venting and burning off an enormous amount of excess methane. “We’re just flaring a tremendous amount of gas,” Ness acknowledged at the June 2019 industry meeting.

In March, a team of Harvard researchers found emissions from oil production are 90% higher than EPA estimates, and emissions from natural gas production are 50% higher. In Texas’ oil-rich Permian Basin, unpermitted flaring of methane is ubiquitous, according to a recent report from the conservation group Earthworks.

Of 227 active flares that were surveyed during a series of flyovers between January and June 2020, 192 of them — 84% — did not have a necessary permit from the Texas Railroad Commission, that study found. The United Nations’ Intergovernmental Panel on Climate Change, or IPCC, warned in its most recent climate report that slashing methane and other so-called super pollutants could go a long way toward staving off additional planetary warming. 

The American Petroleum Institute, the industry’s largest trade association, recently came out in support of a pledge from the Biden administration and the European Union to reduce methane pollution at least 30% over the next decade. (The Environmental Protection Agency is expected to finalize stricter rules on methane in the coming weeks.)

Whitehouse isn’t buying the industry’s purported support.

“Anyone who believes @APIenergy needs to have their head examined,” he tweeted earlier this month. “This is a dodge to avoid the methane fee. Then they’ll fight and delay the regs, directly or through coordinated front groups. Fool me once…”

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Biden pushes back at Democrats on taxes

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President BidenJoe BidenSunday shows preview: Coronavirus dominates as country struggles with delta variant Did President Biden institute a vaccine mandate for only half the nation’s teachers? Democrats lean into vaccine mandates ahead of midterms MORE is pushing to prevent congressional Democrats from scaling back his tax proposals, as lawmakers work on a $3.5 trillion social spending package aimed at advancing the president’s economic agenda.

The White House and congressional Democrats both want to raise taxes on the wealthy and corporations, and strengthen tax enforcement, to pay for investments in areas such as child care, health care and climate.

But the legislation that the House Ways and Means Committee approved Wednesday raised some taxes by less than Biden had previously proposed, and left out some of Biden’s proposals altogether.

It remains to be seen whether the administration can get lawmakers to be more aggressive on tax increases and enforcement, given Democrats’ narrow majorities in Congress.

In recent days, the White House has stepped up its messaging and lawmaker-outreach efforts around the social-spending package, and in particular has been emphasizing its proposals to raise taxes on high-income households and corporations and to increase IRS enforcement against the wealthy.

The tax proposals were front and center in a speech Biden gave at the White House on Thursday.

“I’m not out to punish anyone. I’m a capitalist. If you can make a million or a billion dollars, that’s great. God bless you,” Biden said. “All I’m asking is you pay your fair share. Pay your fair share just like middle-class folks do. But that isn’t happening now.”

Biden pushed back on Republican criticisms of his economic plans, saying GOP lawmakers would “rather protect the tax breaks of those at the very top than give tax breaks to working families.” 

The new efforts came as House panels advanced their portions of the $3.5 trillion package. Notably, the Ways and Means Committee advanced a portion that includes tax-increase provisions as well as provisions that extend expansions of tax credits that benefit low- and middle-income households.

The committee’s proposal is less aggressive in raising taxes on high-income households and corporations than proposals Biden released earlier this year. House Democrats are proposing smaller increases in the corporate tax rate and the top capital gains rate than Biden had. Additionally, the committee left out several of Biden’s revenue raising proposals, including those to tax capital gains at death and to increase the amount of information financial institutions report to the IRS about bank accounts.

White House officials have publicly spoken positively about the Ways and Means Committee bill, saying it’s a key step toward accomplishing Biden’s goals on taxes. At the same time, the administration is pushing Congress to do more. 

Biden the day of his speech also spoke on the phone with House Speaker Nancy PelosiNancy PelosiRepublicans caught in California’s recall trap Raise the debt limit while starting to fix the budget   ‘Justice for J6’ organizer calls on demonstrators to respect law enforcement MORE (D-Calif.) and Senate Majority Leader Charles SchumerChuck SchumerBiden discusses agenda with Schumer, Pelosi ahead of pivotal week CEOs urge Congress to raise debt limit or risk ‘avoidable crisis’ If .5 trillion ‘infrastructure’ bill fails, it’s bye-bye for an increasingly unpopular Biden MORE (D-N.Y.) about his economic agenda.

A readout of the call from the White House emphasized unity with the two Democratic leaders.

It said that the three policymakers “reaffirmed that, as we act at this crucial moment to ensure working families are dealt back into our economy, it is only fair that we pay for these tax cuts and investments by repealing the Trump tax giveaways to the wealthiest Americans and big corporations, who often pay little to nothing in taxes.” 

The administration has made touting the proposal on IRS reporting a focus in recent days. The proposal calls for requiring financial institutions to provide the IRS with information about account inflows and outflows in an effort to prevent wealthy people from avoiding paying taxes they already owe. 

“It’s about the super-wealthy finally beginning to pay what they owe — what the existing tax code calls for — just like hard-working Americans do all over this country every Tax Day,” Biden said in his speech Thursday.

Treasury Secretary Janet YellenJanet Louise YellenWhite House touts Nobel economists’ support for Biden agenda Joe Manchin is wrong — we can’t afford not to invest in our children The Hill’s Morning Report – Presented by National Industries for the Blind – What do Manchin and Sinema want? MORE and IRS Commissioner Charles Rettig also sent letters to Ways and Means Committee Chairman Richard NealRichard Edmund NealWant a clean energy future? Look to the tax code Democrats brace for toughest stretch yet with Biden agenda The Hill’s Morning Report – Presented by National Industries for the Blind – What do Manchin and Sinema want? MORE (D-Mass.) last week in support of the information-reporting proposal.

“The objective of this reporting regime is to help the IRS pursue high-end noncompliance by providing some information about opaque income streams that disproportionately accrue to the top,” Yellen wrote.

There are indications that some type of proposal on bank account reporting could make it into the final legislation. Neal said Wednesday that his committee is “in conversations with the administration on reporting proposals that target sophisticated tax avoidance and evasion without impacting middle-class and working Americans.”

Former congressional tax aides say it’s not surprising that the White House is seeking to emphasize its position on taxes during the negotiations over the social-spending package.

“It seems fairly predictable to me that they’re trying to get Congress to support as much of the president’s agenda as they can,” said Ryan Abraham, a former Senate Finance Committee aide who is now a principal at EY’s Washington Council.

The White House may also be hoping that Senate Democrats propose tax increases that go beyond House Democrats’ legislation. Senate Finance Committee Chairman Ron WydenRonald (Ron) Lee WydenWant a clean energy future? Look to the tax code Democrats brace for toughest stretch yet with Biden agenda Lawmakers lay out arguments for boosting clean energy through infrastructure MORE (D-Ore.) has expressed interest in tax-increase options that were not in the Ways and Means bill, such as taxing billionaires’ investment gains annually and an excise tax on stock buybacks.

“This policy is far from done,” Abraham said.

At the same time, Biden has to get nearly every Democratic House member and every Democratic senator to vote for a final piece of legislation, and some moderates have already raised concerns about tax and spending proposals in House Democrats’ bill. 

On Wednesday, Biden met with Sens. Joe ManchinJoe ManchinBriahna Joy Gray: Push toward major social spending amid pandemic was ‘short-lived’ Overnight Energy & Environment — Presented by Climate Power — Emissions heading toward pre-pandemic levels Biden discusses agenda with Schumer, Pelosi ahead of pivotal week MORE (D-W.Va.) and Kyrsten SinemaKyrsten SinemaOvernight Energy & Environment — Presented by Climate Power — Emissions heading toward pre-pandemic levels Biden discusses agenda with Schumer, Pelosi ahead of pivotal week Biden goes after top 1 percent in defending tax hikes MORE (D-Ariz.), two moderates who have raised concerns about the size of the social-spending package.

Democrats will also face a major effort from business groups and Republicans to advocate against his tax proposals. For example, a group of financial industry and business organizations on Friday urged House leaders to not adopt Biden’s IRS information reporting proposal, saying it is not well targeted at uncovering instances of wealthy people not complying with tax laws.

Congressional observers say Biden will need to work to get moderates and progressive to reach a consensus.

“When the political margins are very tight, you just can’t ignore that,” said Jorge Castro, a former congressional aide and senior IRS official who now is a co-leader of the tax-policy practice at Miller & Chevalier.

 



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