US Billionaire Tax Uncertain Amid Democratic Party Internal Opposition

Manchin Expresses Concern... Minimum Corporate Tax Faces Collective Backlash from Companies

[Asia Economy New York=Correspondent Baek Jong-min] Opposition to the ‘billionaire tax’ and the 15% minimum corporate tax being pushed by the US Democratic Party is mounting not only among large corporations but also within the Democratic Party itself, making the passage of the bill uncertain. This is expected to disrupt plans to finalize the $1.75 trillion infrastructure investment bill before President Joe Biden’s weekend European tour.

On the 27th (local time), Democratic Senator Joe Manchin expressed a negative stance on the billionaire tax, spreading forecasts that the bill’s passage will be difficult. Senator Manchin met with President Biden again on this day following the weekend but stated that he does not agree with the billionaire tax.

The billionaire tax involves taxing unrealized stock and bond gains at a 20% rate. This is an extremely unusual policy in US tax policy, which has only taxed capital gains when profits are realized. The Democratic Party pushed for the billionaire tax, mindful of Senator Kyrsten Sinema’s opposition to raising the corporate tax rate, but encountered a ‘major obstacle’ in Senator Manchin.

The Democratic Party cannot pass the bill if even one of the 50 senators opposes it. The Wall Street Journal reported that other Democratic senators have also expressed negative views on the billionaire tax. Paid leave, which was included in the infrastructure budget, was also reportedly scrapped on this day due to Senator Manchin’s opposition.

Corporations are actively opposing the minimum corporate tax. The Business Roundtable (BRT), which includes the top 200 US companies, stated in a press release that it opposes the 15% minimum corporate tax rate.

BRT argued that the minimum corporate tax rate would affect tax incentives that promote facility investment, stating, "We will continue to oppose tax increases harmful to US job-creating companies, including the 15% minimum corporate tax rate on book income currently under discussion."

Neil Bradley, Vice President of the Chamber of Commerce, also expressed concern that Democratic lawmakers are rushing to pass the tax bill. Vice President Bradley said, "I believe lawmakers have not thoroughly reviewed the consequences the bill will bring."