Highly effective Democrats are campaigning for the infrastructure to be paid for by the wealthy, not the remainder of us
The other part of their funding proposal is to steal COVID-19 aid funds, another idea the White House is oblivious to. "We are concerned that major cuts in COVID relief funds could jeopardize outstanding aid to small businesses, restaurants and rural hospitals that are using this money to bounce back after the pandemic is cracked," Psaki said in late May after the First round of talks with Republican Senator Shelley Moore Capito ended. The U.S. Mayors' Conference, National League of Cities, and National Association of Counties are strongly opposed to this idea and have made sure that the leadership of Congress and every member of Congress knows it.
That means raising taxes for the rich. The majority of Democrats in Congress agree on that. They are trying to revive the idea that anyone who pays their fair share of taxes works exactly the way the government should work, and they see this huge, absolutely important, and very popular infrastructure proposal as the way to do it.
"What we're doing is generating income, but we're also making a lot of the American government fairer so people don't feel like they are being played while the rich get away with it," said Senator Ron. Wyden, the Oregon Democrat who chairs the tax finance committee, told the New York Times. He works on tax policy changes for corporations, the energy industry and the rich. That means corporate taxes need to be increased from the 2017 GOP tax fraud rate of 21% – up from 35% prior to 2017, and Democrats have proposed rates of 25% and 28%. They should go back to 35%, but we'll see how much they want to fix that.
Wyden's team has a few more moves in mind for 2017, including one giving millionaires who use partnerships and limited liability companies a tax break for small businesses, and the carried interest loophole, which will allow private equity firms to collect the fees they receive from clients as capital gains (taxed at 20%) rather than income (taxed at 37%). Wyden also suggests removing a number of tax breaks – 44 separate provisions – that are the godsend of the fossil fuel industry, and replacing them with tax breaks for green energy producers.
For the super-rich, Biden wants to raise the top tax bracket from 37% to 39.6% and tax share sales for millionaires as income rather than capital gains. There is support for this among ordinary Democrats in Congress. "Taxes must be collected by corporations and must be collected by the richest people who have made terrible, huge profits from the Trump tax game," Rep. Steve Cohen, a Democrat from Tennessee, told the Times.
The voters also like the idea. Kerry Eleveld writes, “For nearly two decades, more than two-thirds of American taxpayers have told Gallup that they don't believe companies pay their fair share of taxes … At least 80% of Americans said one of their biggest complaints was about the federal tax system the fact that some businesses and wealthy individuals are not paying their fair share. "
Using very popular tax hikes to fund very popular infrastructure projects is pretty much a no-brainer for anyone who doesn't believe Democrats have to deal with morally and intellectually bankrupt Republicans.
Even so, Biden is still listening to this group of 21. "I think the question here is, what can we agree on, Democrats and Republicans? Can we rebuild our roads, our railways, and our bridges?" said Psaki on Monday morning. "The President is keen to continue these discussions and see if we can make great progress this week."
Fine. Based on the last we heard about the bipartisan proposal, there are still major loopholes beyond funding. According to one Republican, the deal is only $ 10 billion in charging points for electric vehicles – that's apparently the scope of the climate change-related regulation in it. As a benchmark, Biden's initial $ 2.25 trillion proposal in the US employment plan is $ 115 billion to modernize the bridges, highways and roads of the fossil fuel age. It has an additional $ 85 billion for public transportation, $ 80 billion for Amtrak, and $ 174 billion to build 500,000 electric vehicle charging stations, electrify 20% of school buses, and electrify the federal fleet. He would spend $ 100 billion on broadband, $ 25 billion on airports and $ 111 billion on water projects.
While these negotiations continue and Biden continues to invest in them, at least to give them time, Senate majority leaders Chuck Schumer and Sanders are pushing the budget vote. That's the process by which they passed Biden's American Rescue Plan – the COVID-19 Relief Act – which doesn't allow Republican filibusters.
With Biden's blessing, Schumer and Sanders – as well as the leadership in the House of Representatives – only have to do this with Democrats. From now on everyone goes ahead as if either could happen; a bipartisan deal can be passed with Republican votes, and anything that cannot be done in this regular bill can be thrown into a budget balance that moderate Democrats – namely Joe Manchin and Kyrsten Sinema – will agree to. It's a lot of work everyone has to do to cater to the massive egos and stubborn blockade of a few.