Expect Higher Taxes, Possibly A VAT, To Support Huge $4 Trillion Infrastructure Bill

To get any legislation passed, Democrats cannot afford to lose a single vote. Senator Joe Manchin holds the lock and the key.

Manchin Open to VAT

Last month Manchin called for 'Enormous' Infrastructure Package Paid for With New Taxes

"I'm sure of one thing: It’s going to be enormous," the West Virginia Democrat, who is seen as a swing vote in a chamber divided 50-50, told reporters at the Capitol.

While he didn't predict a price tag, Manchin said Congress should do "everything we possibly can" to pay for it. He said there should be "tax adjustments" to former President Donald Trump’s 2017 tax law to boost revenues, including by raising the corporate rate from the current 21 percent to at least 25 percent.

The tax benefits in the Republican law were "weighted in one direction to the upper end," Manchin said. He also suggested an "infrastructure bank" paid for with revenues, potentially a value-added tax, that would be used for "rebuilding America."

"I'm not afraid to look at other things," he said.

Pulling Biden to the Left

Yesterday, NY Magazine reported Joe Manchin May Be Pulling Biden Left on Infrastructure.

Joe Manchin is an odd Democrat. This is true in a banal sense, in that the West Virginia senator is far more conservative than the median member of his party on a whole host of issues. At present, Manchin is directly blocking the passage of progressive gun safetyvoting rights, and minimum wage bills, and indirectly obstructing just about every other item on President Biden’s agenda, by opposing substantial reforms to the legislative filibuster.

But on infrastructure, Manchin is a different kind of strange. Whenever the subject comes up, the man’s mood grows lighter, his eyes grow wider, and a wee bit of socialism creeps into his heart. 

In an interview with the Bipartisan Policy Center in February, Manchin likened the scale of his desired infrastructure package to that of the New Deal or Dwight Eisenhower’s federal highway bill.

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Ifeanyi Ugbo 2 weeks ago Member's comment

Whenever Congress gets together, I am not surprised that new taxes are in order. With Trump taxes went down on corporations. Now, this shows there may be an increase in corporate taxes. Ultimately, there are more small business corporations than the large McDonald's, Walmarts, Amazon, corporations, so undoubtedly the small businesses will hurt more. With trillions in debt with an ever larger deficit, will all these new taxes really help the economy? Only time will tell.

I doubt it.

Nice post.