Senate and House Democratic centrists who object to a $3.5 trillion social welfare spending package will find it easier to support the measure if it is paid for with new revenue.
At least that’s the thinking among top Democrats promoting efforts to offset much of the cost of the bill with new revenue.
“We are going to make sure that this bill is paid for and that those at the very top finally pay their fair share,” said Senate Majority Leader Chuck Schumer, a New York Democrat, on Monday.
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They’ll need to convince Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, who have publicly stated opposition to the $3.5 trillion price tag for the package. At least one House Democrat, Rep. Stephanie Murphy of Florida, signaled the cost may be too high.
It’s not clear whether offsets will placate the centrists.
Manchin told ABC News on Sunday that despite pledges from Democrats to pay for the legislation, the bill includes $1.7 trillion in borrowing authority over 10 years.
“I think a strategic pause is necessary right now,” Manchin said.
But Democrats are eager to pass the legislation by the end of September, along with a $1.2 trillion infrastructure bill the Senate passed earlier this summer.
This week, House Democrats began advancing legislation to hike taxes on corporations and the wealthy to raise revenue and pay for their social welfare spending package.
The massive spending package would pay for free universal preschool, free community college, expanded Medicare benefits, money for the care of the elderly and disabled, expansion of child tax credit, and much more.
“We can do all this while responsibly funding our plans,” said Ways and Means Committee Chairman Richard Neal, a Massachusetts Democrat, on Monday as he touted the bill.
The House Ways and Means Committee unveiled legislation it plans to advance this week that it said would raise $2.9 trillion in taxes over the next decade. The nonpartisan Joint Committee on Taxation estimated it would raise just over $2 trillion.
Much of the revenue would come from raising the corporate tax rate from the current 21% to 26.5% and raising the top marginal income tax rate from 37% to 39.6%.
Earlier this year, Manchin rejected a Democratic plan to raise corporate taxes to 28% and said he favored a top rate of 25%.
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“The bottom line is, what is the number that is going to be competitive in our tax code?” Manchin told CNN on Sunday. “I believe the corporate tax rate should be at 25, not 21.”
Manchin on Sunday declined to declare a spending limit for the social welfare package, suggesting a $1.5 trillion might be as high as he can go.
“I think that you’re going to have to look at it and find out what you’re able to do through a reasonable, responsible way,” he said. “It’s not going to be $3.5 trillion, I can assure you.”
