Senator Bernie Sanders (I-Vt), the chairman of the upper chamber’s budget committee, unveiled a bill last week that, should it become law, would raise the corporate tax rate from 21% to 35%. He also proposed measures for the taxing of the offshore profits of US corporations. Both of these measures go far beyond with the administration of President Biden has proposed: and if Sanders presses this it could mean a sharp battle between the progressive and the moderate factions of the Democratic Party on Capitol Hill.
Biden’s proposal for raising revenue for infrastructure would also lift the corporate tax rate, but only to the relatively modest level of 28%.
Facing 50/50 balance in the Senate, even in cases where the filibuster is not a threat President Biden’s legislative programs depend on his ability to preserve unanimity in the Democratic caucus, and add to their 50 with the help of he Vice-President’s tie breaking vote.
The Thing to Know:
Although Sanders is nominally an Independent as to party, he caucuses with the Democrats and of course has twice run for the Democratic Party’s nomination for President. He is counted as part of their half of that 50/50 split. Biden cannot afford to do much to placate Sanders that would not alienate the party’s moderates, like Senator Joe Manchin (D – WV).