Sen. Joe Manchin, a key centrist Democrat negotiating the party’s massive social welfare spending bill, criticized a new plan to tax billionaires but came up with his own formula.
Manchin, of West Virginia, pitched a “patriotic” 15% tax on the nation’s billionaires that would ensure they pay enough.
“That’s called a patriotic tax,” Manchin told reporters on Wednesday.
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Manchin criticized a new tax proposal unveiled on Tuesday by Senate Finance Committee Chairman Ron Wyden that would target those with $1 billion in wealth or people making at least $100 million in income for three consecutive years.
Wyden’s proposal would start next year for those with net worths over $1 billion and would apply to 2019, 2020, and 2021 for those making $100 million each of those years.
Manchin’s not a fan of the proposal, he told reporters, which could mean Democrats will have to change it or scrap it because the party controls only 50 Senate votes, and every single party lawmaker is needed to vote for the legislation or it will stall.
“I don’t like it,” Manchin said. “I don’t like the connotation that we’re targeting different people. There are people that, basically, they’ve contributed to society, that create a lot of jobs and invest a lot of money and give a lot of philanthropic pursuits.”
Manchin added, “But it’s time that we all pull together and grow together. I believe everyone’s going to pay. I believe that we will end up where everyone must participate.”
Wyden and other supporters of the billionaire tax argue the nation’s top earners end up paying about 8% in taxes, a much lower percentage than ordinary working people.
“The billionaires income tax would ensure billionaires pay tax every year, just like working Americans,” Wyden, an Oregon Democrat, said. “No working person in America thinks it’s right that they pay their taxes and billionaires don’t.”
Democrats are racing to secure a framework for a massive social welfare spending plan but have yet to come up with a way to pay for it.
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Manchin and fellow centrist Sen. Kyrsten Sinema of Arizona rejected hiking corporate taxes from 21% to 26.5% and oppose other tax hikes planned on wealthy individuals out of concern it will hurt businesses and the economy.
Manchin said “a patriotic tax will be nothing we should be scorned about,” adding, “It doesn’t harm anybody.”
Manchin did not elaborate on details about his “patriotic tax” idea.
Manchin told reporters on Wednesday he believes the party can secure a framework by this week but that dubious House Democrats will have to “trust” the Senate will work out the details later, with the help of President Joe Biden.
“We’re basically trying to agree to a framework, and the president’s been very clear,” Manchin told reporters. “He’ll go over to the House, and he’ll basically explain to the House that [he has] a framework, but there’s still an awful lot of work to be done. And we’re going to have something happen, and you have to trust. The president’s getting everything he has to make this happen. He’s trying to meet everybody halfway.”
