Several moderate House Democrats are pushing back on the Biden administration’s plan to raise taxes in order to finance a $3 trillion infrastructure initiative, Axios reported on Monday.
The opposition from House Democrats comes in addition to potential resistance from Senators Joe Manchin (D., W.Va.) and Kyrsten Sinema (D., Ariz.). With a slim 219-212 majority, House Democrats could run into difficulties if divisions emerge.
“We need to be careful not to do anything that’s too big or too much in the middle of a pandemic and an economic crisis,” Representative Josh Gottheimer (D., N.J.) told Axios. It’s got to be responsible and both parties need to be at the table. This can’t just be jammed through without input and consideration from the other side.”
Gottheimer and Representative Tom Suozzi (D., N.Y.) said they would not vote for any tax increase unless it expands the State and Local Tax deduction that was capped at $10,000 under the Trump administration. The SALT deduction is supported by Senate Majority Leader Chuck Schumer (D., N.Y.), but is opposed by progressive Democrats because the deduction is seen as benefiting rich Americans who reside in high tax states.
“I’m not voting for any changes in the tax code unless we reinstate SALT as part of the deal,” Suozzi said.
The Biden administration has yet to announce its final proposals for funding the infrastructure legislation. The bills are intended to fund the repair of roads and bridges across the country as well as a number of initiatives meant to slow climate change, such as building a network of electric vehicle charging stations.
Senate Majority Leader Mitch McConnell (R., Ky.) has warned that Republicans may view the legislation as a “Trojan horse” for tax increases.
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