President Biden’s $2 trillion spending package continues to stall as senior Democrats are hoping to finalize a proposal on a new annual tax on billionaires’ unrealized capital gains, Democratic leadership has indicated.
“We probably will have a wealth tax,” House Speaker Nancy Pelosi (D-Calif.) confirmed Sunday on CNN.
The proposal, which is being reviewed by Senate Finance Committee Chairman Ron Wyden (D-Ore.), would impose an annual tax on unrealized capital gains on liquid assets held by billionaires, Treasury Secretary Janet Yellen said.
“I wouldn’t call that a wealth tax, but it would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals and right now escape taxation until they’re realized,” Yellen said on CNN.
The proposal would likely only affect less than 1,000 of the nation’s wealthiest citizens, according to the Wall Street Journal.
Pelosi said she believes the tax plan could be introduced as early as Monday.
Democrats have also eyed a 15 percent corporate minimum tax, forcing companies to pay what Biden has called their “fair share,” and putting an end to corporations paying zero taxes.
“I think we’re pretty much there,” Pelosi said of the package, adding that some “last decisions” still need to be finalized.
The Democrats’ plan for a $3.5 trillion spending bill has been pared by moderate lawmakers led by Sens. Kyrsten Sinema (D-Ariz.) and Joe Manchin (D-WV) to $2 trillion. The final price could well be less than that, as Manchin has indicated his willingness to approve a $1.75 trillion bill.
Biden met with Manchin and Senate Majority Leader Chuck Schumer (D-NY) at his Delaware home Sunday morning in the hopes of ironing out final issues remaining with the package.
The White House described the talks as a “productive discussion,” but no major decisions were announced.
Next week, the House will vote on a separate $1 trillion bipartisan spending bill before several transportation programs will default.
With Post wires