Sinema has played a lower-profile but similar role as Manchin — a lawmaker who can be unpredictable and willing to use the leverage all Democrats have in a 50-50 Senate. Last year, she lauded a proposal for a minimum tax on large corporations — which the new legislation has — but has also expressed opposition to increasing corporate or individual tax rates.
“She has a lot in this bill,” Manchin, citing her support for past efforts to rein prices for prescription drugs, told reporters Monday. He said she’s been “very adamant” about not increasing taxes, adding, “I feel the same way.”
Manchin has asserted the bill's imposition of a 15% minimum tax on corporations earning over $1 billion annually is not a tax increase. He says it closes loopholes such companies use to escape paying the current 21% corporate tax.
Republicans mocked that reasoning and said its tax boosts would weaken the economy and kill jobs. They cited a report from Congress' nonpartisan Joint Committee on Taxation that said about half of the corporate minimum tax would hit manufacturing firms.
“So in the middle of a supply chain crisis, Democrats want huge job-killing tax hikes that will disproportionately crush American manufacturing and manufacturing jobs," said Senate Minority Leader Mitch McConnell, R-Ky.
Biden has said he will not raise taxes on people earning under $400,000 annually. Manchin has said the Democratic package honors that pledge.
Republicans recently distributed another Joint Committee on Taxation analysis that said the measure would raise taxes on people earning below that figure. Democrats criticized the study as incomplete, saying it omitted the impact on middle-class families of the bill's health insurance subsidies and clean energy tax cuts.
Democrats touted a report by Mark Zandi, chief economist at Moody’s Analytics. It said the measure “will nudge the economy and inflation in the right direction, while meaningfully addressing climate change and reducing the government's budget deficits."
Schumer said he expected votes to begin this week in the Senate, where Vice President Kamala Harris could cast the tie-breaking vote to assure its passage. The narrowly divided House has left town for an August recess, but Democratic leaders have said they would bring lawmakers back for a vote, perhaps next week.