Tax-code changes moving through Congress this month would still likely raise more than $1 trillion over a decade and reverse many Trump-era changes to help fund an expanded social safety net. Key pieces remain unresolved, and progressive activists hope Democrats can be swayed by last-minute pressure campaigns and the party’s desire to unite behind President Biden.
“The labor movement does not believe that there is a Democrat in either house prepared to block the president’s investment agenda for the benefit of giant corporations and billionaires,” said Damon Silvers, director of policy at the AFL-CIO. “But if it turned out that there was such a person, our members would certainly want to talk to them.”
Democrats are weighing how far to go, particularly on taxing multinational corporations and capital gains. They had planned to use higher taxes, tax enforcement and other policy changes to pay for their $3.5 trillion, 10-year package. The bill is expected to create a paid-leave program, extend the expanded child tax credit, offer renewable-energy tax breaks and may create a Medicare dental benefit. Each $1 trillion in tax increases over a decade is roughly a 2% increase in federal revenue.
Join the conversation as a VIP Member