On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax

Happy Wednesday and welcome back to On The Money. I’m Naomi Jagoda, in for Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at njagoda@thehill.com or tweet me @njagoda. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter:@SylvanLane, @NJagoda and @NivElis.

ADVERTISEMENT

THE BIG DEAL: Bipartisan Senate group rules out tax hikes on infrastructure

A bipartisan Senate group is taking tax increases off the table as lawmakers try to craft an infrastructure proposal after GOP talks with the White House collapsed Tuesday.

Raising taxes on high-income earners and corporations has been a key part of President BidenJoe BidenWhite House announces major boost to global vaccine supply U.S. in talks to buy Moderna’s COVID-19 vaccine to send abroad: report Pentagon to consider authorizing airstrikes in Afghanistan if country falls into crisis: report MORE‘s infrastructure plan, making it nearly impossible to garner enough GOP support for legislation that can clear the Senate.

Sen. Jon TesterJonathan (Jon) TesterOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax House moderates unveil .25T infrastructure plan 35 percent say passing infrastructure bill should be top congressional priority: poll MORE (D-Mont.), who is in the bipartisan group, said tax increases are not under consideration as senators attempt to reach consensus on how to pay for their plan.

When asked Wednesday if tax hikes were out, Tester responded: “That’s my understanding. I think there’s ways to do that; hopefully it won’t be smoke and mirrors. Bottom line, this is probably the hardest part from my perspective, is how you get it paid for.”

ADVERTISEMENT

The state of play on infrastructure talks:

  • Biden is expected to shift to negotiations with the bipartisan group of senators after talks were called off between the president and Republicans led by Sen. Shelley Moore CapitoShelley Wellons Moore CapitoOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Five things to watch on Biden’s first foreign trip America needs private investment — not public infrastructure MORE (R-W.Va.).
  • The bipartisan group includes senators such as Tester and Sens. Mitt RomneyWillard (Mitt) Mitt RomneyHillicon Valley: Biden gives TikTok and WeChat a reprieve | Colonial Pipeline CEO addresses Congress again | Thomson Reuters shareholders want review of ICE ties On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Romney presses Microsoft over missing Tiananmen Square images MORE (R-Utah), Kyrsten SinemaKyrsten SinemaOvernight Health Care: US to donate 500 million Pfizer doses to other countries: reports | GOP’s attacks on Fauci at center of pandemic message | Federal appeals court blocks Missouri abortion ban On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Arizona Democrats launch voter outreach effort ahead of key Senate race MORE (D-Ariz.), Bill CassidyBill CassidyOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Business giants join initiative to crack down on counterfeits House moderates unveil .25T infrastructure plan MORE (R-La.) and Joe ManchinJoe ManchinBriahna Joy Gray: Biden, Manchin don’t have ‘sincere commitment to bipartisanship’ Overnight Health Care: US to donate 500 million Pfizer doses to other countries: reports | GOP’s attacks on Fauci at center of pandemic message | Federal appeals court blocks Missouri abortion ban On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax MORE (D-W.Va.).
  • The group is expected to be looking at a proposal of around $900 billion, compared to Biden’s initial proposal of more than $2.2 trillion.

The Hill’s Jordain Carney has more here on the Senate infrastructure discussions.

In related news, the bipartisan House Problem Solvers Caucus on Wednesday unveiled an eight-year, $1.25 trillion infrastructure plan aimed at helping to break the impasse on the topic. The group will offer proposals on how to pay for the package in the coming days, but isn’t expected to endorse the tax increases sought by Biden and progressives, The Hill’s Scott Wong and Mike Lillis reported.

 

LEADING THE DAY: New report reignites push for wealth tax

A blockbuster ProPublica report on the taxes of the richest Americans is reigniting a push from progressives for a wealth tax.

The report, based on tax-return data ProPublica received from an anonymous source, details how prominent billionaires like Jeff BezosJeffrey (Jeff) Preston Bezos5 former Treasury secretaries back Biden’s plan to increase tax enforcement on wealthy On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax MORE and Elon MuskElon Reeve Musk5 former Treasury secretaries back Biden’s plan to increase tax enforcement on wealthy On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax MORE have paid little-to-no-taxes in some recent years, particularly when compared to their wealth gains.

The article comes as President Biden has proposed raising taxes on the wealthy and corporations to pay for his major spending proposals. Democrats have increasingly made raising taxes on the rich a top priority in recent years, and some progressives have called for going even further than Biden’s proposals by establishing a wealth tax that would impose taxes on net worth rather than income.

Democrats said that ProPublica’s report underscores the need for action to increase taxes on the rich, who have most of their wealth tied up in stocks and real estate. Gains in the value of investments are not taxed until the assets are sold. 

“The ProPublica story reminds us again why we need a wealth tax,” Sen. Elizabeth WarrenElizabeth WarrenOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax Meet the most powerful woman in Washington not named Pelosi or Harris MORE (D-Mass.) said Tuesday. “People all across this country know that the game is rigged, but the ProPublica story just mashes that right in folks’ faces.”

  • While progressives such as Warren, Sen. Bernie SandersBernie SandersBriahna Joy Gray: Biden, Manchin don’t have ‘sincere commitment to bipartisanship’ On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax MORE (I-Vt.) and Rep. Pramila JayapalPramila JayapalOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax House moderates unveil .25T infrastructure plan MORE (D-Wash.) back a wealth tax, Biden has not offered a proposal on the topic. 
  • Biden’s proposals to raise taxes on the wealthy include raising the top individual tax rate, raising capital gains tax rates for high-income households, and taxing capital gains at death.
  • Moderate Democrats aren’t fans of a wealth tax, and it’s unclear how quickly any tax increases on the wealthy will be enacted.

The Hill’s Scott Wong and I have more here on Democrats’ reaction to the ProPublica report.

 

GOOD TO KNOW:

  • The cryptocurrency industry is increasing its lobbying presence in Washington as it attempts to ease concerns from Congress and regulators about digital currency’s volatility, environmental impact and role in recent high-profile ransomware attacks.
  • Fifty-five companies that didn’t pay any corporate income tax in 2020 shelled out $408 million on lobbying over the past six years, according to a new report from left-leaning watchdog group Public Citizen.
  • Five former Treasury secretaries wrote a New York Times op-ed in support Biden’s proposal to strengthen tax enforcement.
  • Chipotle executives on Tuesday said they raised menu prices by about 4 percent to make up for the company’s recent decision to give its workers higher wages. 
  • Washington D.C.’s liquor board voted Wednesday to lift the last of coronavirus restrictions on bars and restaurants.

Click Here: Belgium soccer tracksuit