Congressional Democrats are likely to tone down tax increases to make them workable from policy and political standpoints, Bloomberg reported.
- The Treasury Department is set to release the Green Book which details the tax hike proposals, but staff are already tempering down the measure.
- Senator Chris Van Hollen said all 50 Democratic Senators should be on board and there is no room for error, as options are being identified.
- Democrats are considering inputs that the increase in taxes could damage growth, especially with the economy still recovering from the COVID-19 pandemic.
- Biden wants to increase corporate taxes to 28% from 21%, but this has been challenged by some seeking only 25%.
- Lawmakers from high-tax states are also calling for relief for taxpayers whose state and local tax deductions were capped in the 2017 overhaul.
- Negotiations are likely to take months, including details on how much new spending will come from taxes.
- New Jersey Democrat Representative Josh Gottheimer also flagged that there is little enthusiasm for tax hikes among moderates. He co-chairs the bipartisan Problem Solvers Caucus.