Biden reconciliation framework costs $1.75T, includes $1.995 trillion in tax hikes, White House says
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The reconciliation framework President Biden plans to announce to House Democrats at their 9 a.m. caucus meeting will include an estimated $1.995 trillion pay-fors, including a tax on stock buybacks, efforts by the IRS to stop tax dodgers and more.
The plan will also include a child tax credit, universal preschool, and a modified Medicaid expansion, among other things. Notably not in the plan are universal community college, paid family leave, and other policies.
President Biden speaks about the COVID-19 relief package in the State Dining Room of the White House, Monday, March 15, 2021, in Washington. Biden is visiting House Democrats on Capitol Hill to sell his reconciliation framework Thursday morning. (AP (AP / AP Images)
"The president believes this framework will earn the support of all 50 Democratic senators and pass the House," a senior administration official said of the plan Thursday morning. "He will defer to Speaker Pelosi… on the specific timing of votes, but he will be full-throated that he believes each of these bills should pass when they come."
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An official added: "We're not going to speak for any lawmakers from here… But our bottom line is we are confident that this will earn the support of every Democratic senator pass the House."
Speaker of the House Nancy Pelosi, D-Calif., meets with reporters to discuss President Joe Biden's domestic agenda Wednesday, Sept. 8, 2021. Pelosi has a tall task in front of her to get progressives to support the bipartisan infrastructure bill. (AP (AP Photo/J. Scott Applewhite / AP Newsroom)
The White House estimates that its plan will cost $1.75 trillion, and that its pay-fors would raise $1.995 trillion. There is no bill text to these claims have not actually been evaluated by the Congressional Budget Office or any independent watchdogs.
Among the pay-fors will be a 15% corporate minimum tax ($325 billion) ; a 1% surcharge on corporate stock buybacks ($125 billion); a global minimum tax of 15% and a penalty for foreign companies that are based in countries without a minimum tax ($350 billion); a millionaires and billionaires surtax ($230 billion); closing a Medicare tax loophole ($250 billion); increased IRS enforcement aimed at the wealthy ($400 billion); limiting tax deductions for business losses for wealthy people ($170 billion); and the repeal of the prescription drug rebate rule ($145 billion).
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Rep. Pramila Jayapal, D-Wash., participates in the news conference in the Capitol on Wednesday, June 16, 2021. Jayapal is among the progressive Democrats who say they won't vote for an infrastructure bill without (Photo by Bill Clark/CQ-Roll Call, In (Photo by Bill Clark/CQ-Roll Call, Inc via Getty Images / Getty Images)
Top Democrats will not only have to get all members on board with the reconciliation framework, but they'll also need to convince House progressives to support the bipartisan infrastructure bill while reconciliation is still just a framework.
The reason the president is announcing this framework now is to get progressives to stop blocking the infrastructure bill before he goes to Europe for a climate summit.
Progressives killed the infrastructure bill last month in similar circumstances and many are still demanding that a legislative text of reconciliation be ready to pass before they vote on infrastructure.
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Biden's framework is far from a bill, which wil llikely be hundreds of pages if not thousands. It is instead two fact sheets of fewer than 10 pages.
FOX Business' Erin McEwan contributed to this report.