Democrats Seek to Finalize Unrealized Capital Gains Tax on President Biden’s $2T Spending Plan

The spending bill has been pared down from its original $3.5T goals. The number $2T is the number that is most closely associated with it today, however even that could change. It’s not likely the bill will be $2 T if Senator Manchin (D-WV) and Senator Sinema (D-AZ) get their way. Senator Manchin has already sought to whittle it down to a range between $1.9 T and $2.5 T. He’s also said if it reached $1.75T he will sign off.

The bill is considered among the largest packages of tax hikes in decades, with a spending plan from those hikes that largely focuses on children, families, and health care.

The spending plan is expected to be a 10-year-spending bill, with children and families coming first. If passed, it will help to establish a universal Pre-K, and will expand the child tax credit. The plan also includes initiatives to make child care more affordable.

Paid family and medical leave programs are also included in the spending package. An expansion on Medicare benefits is expected, with the hopes that vision, dental, and hearing benefits will be added. All three of those initiatives are not expected to pass, but vision and hearing might.

An emphasis on children nutrition programs is also in the bill.

Cuts are always on the table as the bill keeps getting smaller. The child tax credit duration will be cut from four years to one as it stands now.

President Biden’s climate change plan is also on tenuous ground, particularly the initiative to subsidize utility companies for cleaner energy sources. Democrats are still looking for an alternative here, however production tax credits on nuclear power and more credits for carbon sequestration are back on the table. Final issues were still being discussed as early as yesterday at President Biden’s Delaware home.

Yesterday, with Senator Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) met with President Biden to iron out some details. The New York Post reported that the White House called it a productive discussion. Decisions from there have not been announced. A key issue with the bill includes a 15 percent corporate minimum tax. With this President Biden will require companies to pay what he has referred to as their “fair share.” In addition to unrealized gains taxes, corporations are expected to pay significantly to cover the ambitious spending bill.