Biden's Divide And Conquer Tax Plan Strategy Is Likely To Succeed

Biden's infrastructure programs will roll out this week. A second proposal focusing on child care and healthcare programs is expected in April, then massive tax hikes.

Two Pieces or Three?

The Wall Street Journal reports Biden Plans to Split Spending Plan in Two

President Biden plans to split up his next big government-spending push into two programs and will lay out his vision for an infrastructure-focused first proposal, including green-energy programs, at an event in Pittsburgh this week, a top administration official said Sunday.

The second proposal, which the administration plans to release in April, would focus more on child care and healthcare programs, among other priorities for the administration, White House press secretary Jen Psaki said on “Fox News Sunday.”

At some point the administration plans to propose tax increases on higher-income households and businesses to help pay for the programs, though it has yet to lay out its tax strategy or how it will fit together with the next two proposals. 

Divide and Conquer or Trojan Horse?

Infrastructure spending is easy to split off. It will contain enough earmarks and boondoggles for Red and Blue states that it will sail through Congress despite Mitch McConnell's mostly accurate assessment on Fox News last week.

 “They’re now cooking up yet another package they’re going to call infrastructure, but it’s going to be a Trojan horse that includes massive tax increases on Americans. They’re going hard left,” said McConnell.

The $3 trillion infrastructure bill may contain pieces of tax reform or even all of it, if Democrats can get enough Republicans to sign off, but taxes increases are a tough sell.

The purpose of splitting the bills in two or three is to get enough Republicans on board for each of the pieces, except taxes.

The final piece, Taxes will not fly with Republicans, but if Biden can get the rest through with 60 votes, then if Democrats do not lose any votes in the Senate they will be able to pass a massive tax bill through reconciliation with only 50 votes. 

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