Democrat President Joe Biden has reportedly been told by Sen. Joe Manchin (D-WV) that he will need to dramatically scale back one of the top items included in his $3.5 trillion social spending bill.
Manchin “told the White House the child tax credit must include a firm work requirement and family income cap in the $60,000 range,” Axios reported, adding that the move “would dramatically weaken one of President Biden’s signature programs.”
Manchin, along with Sen. Kyrsten Sinema (D-AZ), “held a call with House centrist lawmakers last Wednesday in which the senators detailed some of their specific concerns about Biden’s $3.5 trillion social spending plan,” the report added.
Biden was reportedly dealt another severe blow from Manchin in recent days over another major component of the $3.5 trillion bill.
The New York Times reported:
Manchin, the Democrat from coal-rich West Virginia whose vote is crucial to passage of the bill, has told the White House that he strongly opposes the clean electricity program, according to three of those people. As a result, White House staffers are now rewriting the legislation without that climate provision, and are trying to cobble together a mix of other policies that could also cut emissions. …
The $150 billion clean electricity program was the muscle behind Mr. Biden’s ambitious climate agenda. It would reward utilities that switched from burning fossil fuels to renewable energy sources, and penalize those that do not.
“Millions of jobs are open, supply chains are strained and unavoidable inflation taxes are draining workers’ hard-earned wages as the price of gasoline and groceries continues to climb,” Manchin said in a statement earlier this week. “To be clear, again, Congress should proceed with caution on any additional spending and I will not vote for a reckless expansion of government programs.”
Sinema, who was recently in Europe fundraising for the Democrat Senatorial Campaign Committee, opposes Biden raising taxes to pay for his agenda.
Business Insider reports:
A major holdup in the talks is Sinema’s opposition to bumping up tax rates for individuals and large corporations, per two Senate Democratic aides familiar with the matter. Her position threatens to deprive the package of over $700 billion in revenue to finance the bulk of President Joe Biden’s agenda. Biden has repeatedly promised his plan will be paid for and won’t add to the federal deficit. Most Democrats are also fervent in their desire to roll back President Donald Trump’s 2017 tax cuts.
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This article has been expanded after publication to include additional information.