The Democrats are having a tough week at the Capitol, where the inclusions and exclusions of the Economic Stimulus Package post-COVID-19. One of the major pressure points of contention between the Biden administration and Senator Joe Manchin is regarding the Paid leave proposal. The proposal which initially spoke about 12 weeks of paid leave, and was reduced to 4 weeks by the Senator, now may be completely left out.
The most expensive Bill of $1.75 Trillion, which is most likely expected to be tabled soon, shall open a number of debates regarding the policy inclusions and exclusions. It shall also majorly impact upcoming bills, and the position of different Senators on them, especially the Infrastructure Bill.
House Pres. Biden before departing for his official commitments in Europe is eager to show positive developments, as it would impact positively upon the Virginia and New Jersey gubernatorial elections. He has lately spoken to Sens. Joe Manchin (D., W.Va.) and Kyrsten Sinema (D., Ariz.), the two holdouts from the Democratic bench, to come to an agreement.
Senate Majority Leader Chuck Schumer (D., N.Y.) expects that they may conclude in a few days. House Speaker Nancy Pelosi (D., Calif.) wrote in a public letter that the legislation by Thursday might be put out for official consideration.
“What we need to have from the Senate is that definite yes, that this is the text and definitely that this thing will happen, on the schedule,” said Rep. Cori Bush (D., Mo.).
Out of the many things Democrats are having to compromise over includes, free community college, rewarding on the adoption of clean energy policies, and top marginal tax being increased. This is largely owed to opposition from Centrist Democrats.
Other items on the list which haven’t been settled include a controversial Tax on Billionaires’ unrealized gains, upon which a large chunk of Democrats has defied confidence as well. It was expected to be a major source of revenue for the Democrats’ Administration, The House proposed a 3% tax on adjusted gross income over $5 million. The revised proposal may include a 5% tax above $10 million or more.
The bulk of the money for the Bill, even without the Billionaires’ Tax would cross the mark of $1.7 Trillion, as most of it would come from the corporate minimum tax, international tax changes, and levying a 3.8% investment-income tax to active business income.
A clause permitting negotiation on the price of prescription drugs is also in contention for the government.
No Republicans are probable to let the Bill for restructuring of the Economy pass, implying Democrats can’t lose a single vote in the equally divided Senate and only have room for 3 defections in the House.