Consider this a case of pre-Election Day cold feet. As The Hill points out, Senate Democrats had been on board with Joe Biden’s campaign pledge to reverse Donald Trump’s 2017 tax cuts, which he claims only benefited the top 1% of Americans. Biden’s pledge to reverse those changes on “Day One” of his presidency had, until now, received enthusiastic backing from Senate Democrats.
That was true even when analysis showed that it could cut economic growth and cost hundreds of thousands of jobs. CNBC noted in May the potential impacts of returning to the old corporate-tax policies and its impact on workers, not to mention the investment costs of raising the capital-gains taxes again: