(Bloomberg) -- House Democrats are on track Wednesday to advance through committee the tax provisions to pay for President Joe Biden’s economic agenda, sending revenue measures worth some $2 trillion to the Budget Committee.
It’s still unclear how Democrats will handle key tax provisions, including removing or boosting the $10,000 cap on the federal deduction for state and local taxes, or SALT. Also uncertain is the fate of a proposal to require banks and other financial institutions to report data on customers’ account outflows and inflows to the IRS -- bolstering tax-collection efforts.
In the Senate, Democratic leaders are trying to get the full caucus behind the size and scope of the legislative package, the largest such undertaking in decades. Budget Committee Chairman Bernie Sanders paints the current price tag as a compromise relative to his initial $6 trillion, while moderates led by West Virginia’s Joe Manchin -- who along with Arizona’s Kyrsten Sinema are meeting with Biden Wednesday -- want a bill smaller than $3.5 trillion under consideration. Republicans have vowed to oppose the bill, requiring unity in the Democratic caucus.
Key Stories and Developments:
- House Democrats are considering a two-year repeal as one of their potential paths to undoing the $10,000 cap on the federal deduction for state and local taxes.
- Key Senate Democrat moves to repeal a key tax advantage for the $6.8 trillion U.S. exchange-traded fund industry.
All times are U.S. Eastern Time:
Biden Summons Manchin, Sinema to White House (9:55 a.m.)
President Joe Biden will meet separately today with Senators Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, according to a person familiar with the plans.
Both are moderate Democrats who are pivotal in determining whether the president can achieve passage of his broad economic agenda.
Senate Democrats need all 50 members of their caucus to agree on a final package that will raise taxes on companies and the wealthy, while also expanding social spending in areas including climate change, immigration, health care and elder care. Both Manchin and Sinema have balked at the current $3.5 trillion price tag, and Manchin also has called for a “strategic pause” in deliberations amid soaring debt and rising inflation.
Sinema is meeting with Biden mid-morning, while Manchin is scheduled for Wednesday evening, according to the person familiar with the matter. -- Laura Litvan and Jennifer Epstein
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