First look: How White House pays for Biden agenda
Add Axios as your preferred source to
see more of our stories on Google.
The White House is trying to address voter concerns about its proposed $1.75 trillion social safety net expansion with a spreadsheet — obtained by Axios — showing broad revenue categories that fully cover the cost of the measure.
Why it matters: Republicans argued their victories in elections on Tuesday were partly driven by voter concern about big spending by Democrats. The spreadsheet circulating Wednesday offers a direct rebuttal to that concern, as Democrats try to regain their balance heading into next year’s midterms.
- The revenue sources are projected to raise over $2.1 trillion, an administration official told Axios, which is more than the bill is estimated to cost.
- Its exact price tag is still in flux, with additional spending being added.
The details: The chart is an internal estimate that was assessed after the latest changes to the bill, including adding a prescription drug provision, the official said.
- The White House estimates strengthening IRS tax enforcement will raise the most revenue, at $400 billion.
- $320 billion is estimated to come from a 15% corporate minimum tax on large corporations, while $365 billion is expected to be raised through the global minimum tax and other changes meant to prevent jobs from going overseas.
- $250 billion will come through a reduced cost of prescription drugs, and closing a Medicare tax loophole for the wealthy, respectively.
- The rest is outlined as follows: $160 billion by limiting business losses for the wealthy, $125 billion through a 1% stock buyback tax on corporations and $230 billion by implementing an AGI surcharge on millionaires and billionaires.
- There's an unspecified $50 billion the White House claims will be raised through "other loophole closers."
What they’re saying: “The administration is confident that the House Build Back Better Act will be fully paid for,” a senior administration official told Axios.
- “Based on updates to the legislation and our latest estimates, it will raise over $2.1 trillion by asking the highest-income Americans and the largest corporations to pay their fair share and reducing the cost of prescription drugs.”
What’s next: Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, told reporters Wednesday afternoon she believes a vote will be held in the House this week on both the $1.2 trillion bipartisan infrastructure bill and the $1.75 trillion social-spending bill.
- While the text of the most recent iteration of that bill was released Wednesday afternoon, a handful of moderate Democrats insist they'll need to see a Congressional Budget Office score of its components before committing to a vote on it.
Editor’s note: This article has been corrected to specify that revenue projections would raise more — not less — than the estimated cost of the Build Back Better bill.
