The proposed bill that would see an increased tax for American billionaires is now dead in the water. Representative Richard Neal said Wednesday that the contentious plan has now been thrown out.
The decision came after Senator Joe Manchin, whose support is crucial to passing the bill in the evenly split Senate, said that he did not support such as legislation. Neal, the chair of the House Ways and Means Committee, said the Billionaire's tax was "out of the Biden plan."
Manchin said Wednesday that the government should not single out the wealthy. He added that rather than penalizing them, the country should be "pleased" that it is able to produce such wealth. He ended his speech by saying that "everyone should pay their fair share."
Senator Ron Wyden, the leader of the Senate Finance Committee, released the legislative draft for the proposed billionaire income tax, which would have compelled billionaires and those earning more than $100 million per year to pay a long-term capital gains tax on unrealized earnings.
Aside from the billionaire tax, Democrats have also proposed a new minimum corporation tax of at least 15% for firms with annual revenues of at least $1 billion. This is on top of a proposal that would widen the conditions for investment income taxes.
White House Press Secretary Jen Psaki did not comment on Manchin's billionaire tax opposition during a Wednesday press conference, instead, she attempted to ease worries that the proposed billionaire's tax legislation would not be defeated in court because it was not illegal.
Democrats have been working for months to resolve internal party concerns about the size of the government's spending plan, which will focus on long-overlooked needs like healthcare, childcare, and education. The main point of contention was where the government would get the funds.
Though the bill's original price tag was $3.5 trillion over 10 years, Manchin, one of the bill's main holdouts, has long stated that a $1.5 trillion package is preferable. Manchin, on the other hand, hinted on Tuesday that he would be prepared to go higher.
Before Biden leaves for a trip to Europe on Thursday, lawmakers are working to reach an agreement. Despite Democrats' persistent disputes, the White House maintained on Wednesday that the timeline appeared to be attainable.
