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October 28, 2021 at 10:01 AM
What You Need to Know
- The package includes an additional 5% tax on incomes above $10 million and an additional 3% on incomes above $25 million.
- Medicare expansion is excluded.
- The Biden administration believes the package can pass Congress.
President Joe Biden Thursday was laying out for House Democrats a framework for a $1.75 trillion tax and spending package that his administration believes will pass Congress — a potential breakthrough that still hinges on support from key moderates and progressives.
The package includes a minimum tax on corporations, a tax on stock buybacks and new taxes on incomes above $10 million annually, with total revenue of an estimated $2 trillion over a decade, according to a White House fact sheet.
It’s unclear how far-reaching the agreement will be and whether enough lawmakers will sign on. Biden, who arrived at the Capitol on Thursday morning to brief the House Democratic caucus, is confident that the package has the support of all 50 Democratic senators and that it will pass the House, officials familiar with the plan said, speaking on condition of anonymity ahead of Biden’s remarks.
It’s also not clear whether House Speaker Nancy Pelosi will use the framework to get a House vote on a separate, bipartisan infrastructure package with $550 billion in new spending. Biden will call for both pieces of legislation to pass whenever they’re up for a vote, but will defer to Pelosi on the timing, the officials said.
Progressives have been holding up the vote on the infrastructure bill, which has already passed the Senate, until they see the legislative text of the larger package. Representative Ilhan Omar of Minnesota said that position hasn’t changed.
“I’m a no on infrastructure until we get the other bill,” she told reporters before heading into the meeting with Biden.
Asked as he arrived at the Capitol whether the framework will get the support of progressives, Biden said, “Yes.”
Biden is scheduled to address the public at 11:30 a.m. before leaving for the Group of 20 summit in Italy.
Provisions of the framework include:
- A 15% minimum tax on corporate profits for firms with earnings over $1 billion reported to shareholders, and a 1% surtax on stock buybacks
- An additional 5% tax on incomes above $10 million, as well as an additional 3% on incomes above $25 million
- $555 billion in clean energy and climate provisions
- Universal, free preschool for 3- and 4-year-olds, and an extension of the child tax credit through 2022
The framework also raises the possibility of immigration reform being included in the reconciliation package, but the scope isn’t clear. It forecasts a cost of $100 billion, in addition to the $1.75 trillion topline.
