Senator Manchin says he favors higher taxes to fight the national debt and inflation. Seemingly, Democrats should be thrilled at this turn of events.
Democrats hoping to resurrect the party’s economic agenda are facing a problem: Sen. Joe Manchin’s goal for raising tax rates clashes with Sen. Kyrsten Sinema’s opposition to doing so.
Mr. Manchin has pointed to raising the corporate tax rate to 25% from 21%, raising the top capital-gains rate to 28% from 23.8% and increasing taxes on private-equity managers’ carried-interest income.
But Democrats abandoned those tax proposals last year because of opposition from Ms. Sinema (D., Ariz.).
Other Democrats broadly support the tax increases that Mr. Manchin is again advocating, but dropping the proposals became one of many concessions the party made to Ms. Sinema and Mr. Manchin over months of talks last year. The compromise surprised many in the party.
“The end result does include the lowest common denominator the party agrees on, which is higher taxes on the very, very rich and also on corporations, but gets to that in a manner that no one left to their own devices would have devised,” Jason Furman, who was a top economic adviser to President Barack Obama, said of the House bill.
Lowest Common Denominator
The lowest common denominator is to do nothing. I hope it stays that way.
I am all in favor of reducing the deficit by cutting spending.
Toss in national right to work laws, bankruptcy reform, and the end of collective bargaining for public unions, and ending tariffs and then I would gladly accept tax hikes too. That's what the country needs but every item on my wish list is off the table.
That means, the best we can do is hope for the lowest common denominator: nothing at all.
This post originated at MishTalk.Com.
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