Senate Democrats Working on Shrinking Biden Tax Increases - Bloomberg

June 29, 2022 2:52 PM EDT

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According to a Bloomberg report Wednesday afternoon, Senate Democrats are trying to shrink the tax increases in US President Biden's economic package.

The plan is part of a bid to make an agreement with Senator Joe Manchin and have it passed in the next few weeks, said Bloomberg, citing people familiar with the matter.

The changes they are considering would mean some of the tax measures passed by the House last year are reduced, potentially resulting in US corporations and wealthy households facing smaller tax hikes than initially expected.

Senate Majority Leader Chuck Schumer and Manchin are reportedly close to agreeing that the overall plan will be roughly $1 trillion.

Bloomberg stated the talks remain "tentative," with neither side fully signed off, but that half would be for new spending, with the other half of the tax increases to cut the deficit by $500 billion over ten years.

The decision to keep the topline figure for the legislation at or below $1 trillion means that the Senate will make substantial cuts to the $1.5 trillion package of tax hikes that passed the House last year.

Last year, a $1.5 trillion package of tax hikes passed the House, but the decision to maintain the topline figure at $1 trillion or below, signifies the Senate will make significant cuts.

Delving deeper into corporate taxes, Bloomberg said its sources stated the Senate Finance Committee is near to completing the terminology to ease a measure in the 15% global minimum levy, allowing companies to blend their overseas tax payments to meet the minimum threshold. Furthermore, the Finance Committee is said to be considering a change to the 15% domestic minimum tax on profits.

By Sam Boughedda

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