MEMO: Economists, policy experts, labor and business leaders maintain that Build Back Better already meets Manchin’s criteria to earn his support

  • Not irresponsibly add to the national debt;
  • Not ignore/worsen inflation; and
  • That it will help move the country forward
  • A new 15% corporate minimum tax on large corporations would ensure that no large profitable company pays nothing in taxes. (Estimate: $325 billion raised)
  • A new surcharge on stock buybacks, which have no benefits for workers but increase the wealth of CEOs and large shareholders. (Estimate: $125 billion raised)
  • Ending tax breaks for companies who ship jobs and profits overseas. (Estimate: $350 billion)
  • A new surcharge on adjusted gross income (AGI) exceeding $10 million. (Estimate: $230 billion)
  • Closing the egregious Medicare tax loophole that allows high-income business owners to avoid paying both Medicare taxes and the parallel tax on unearned income. (Estimate: $250 billion)
  • Bolstering the IRS to crack down on tax cheating and fraud. (Estimate: $400 billion)
  • Limit the amount the wealthy can claim in business losses. (Estimate: $170 billion)
  • Repeal Trump era rule that kept the cost of prescription drugs artificially high. (Estimate $145 billion)
  • Undoing some aspects of the Trump tax cuts would provide a good starting point:
  • Increasing the corporate tax rate from the historic low of 21 percent today. Each increase of 1% would generate roughly $120 billion. Raising the corporate tax rate to 25% — as Sen. Manchin initially proposed — would raise roughly $500 billion.
  • Returning the top income tax rate for the wealthiest Americans back to 39.6%. (Estimate: $130 billion)
  • Ending other tax loopholes and special deductions for high-income Americans and large corporations
  • Allowing Medicare to fully negotiate with drug companies as the President originally proposed (Estimate: $450 billion)
  • The PWBM analysis did not include several revenue-raising provisions that are included in the revised version of the House’s Build Back Better Act; JCT scored these provisions as raising $110 billion in revenue when Ways and Means marked them up.
  • PWBM’s estimates of two provisions, in particular, are likely too low. PWBM estimated the 15% corporate minimum tax and the 1% tax on stock buybacks as raising a combined $245 billion, whereas the Administration estimates them to raise $450 billion. The Joint Committee on Taxation has not released its estimates of these provisions. PWBM emphasized that its estimates were “preliminary and are subject to revision upon further policy details and legislative language.”
  • PWBM’s analysis includes a conservative estimate of BBBA’s investment in closing the tax gap: $200 billion, compared to the Administration’s estimate of $400 billion. But even with the more conservative estimate, BBBA includes $1.8 trillion of offsets.
  • PWBM’s analysis also does not include any savings from prescription drug reforms, since it was assumed on Oct. 28 that they would not be part of the bill.
  • Much like the Bipartisan Infrastructure Framework, the Build Back Better Act is designed to be spent over 10 years.
  • Both long-term packages build a stronger foundation for our economy to grow at a sustainable and supported level through investments in physical infrastructure, human capital, clean energy, housing, and health care.
  • The Bipartisan Infrastructure Framework and the Build Back Better Act would strengthen domestic supply chains — which are currently a main driver of inflation — and make them more resilient to disruptions and environmental risks to keep them healthy over the long haul.
  • BBBA invests in programs like high-quality, affordable child care and universal pre-K making it easier for parents, especially women, to stay in their jobs.
  • Programs like these will make it easier for everybody to fully contribute their skills, experience and talents to an innovative economy, laying the foundation for generations of economic growth.
  • BBBA will also make things like prescription drugs, child care, and health care more affordable and help contain rising costs in key areas.
  • Put the United States on a clear path to cut emissions in half by the end of the decade — the biggest single action we’ve ever taken to tackle the climate crisis, which scientists have clearly stated has reached a “code red” moment. These investments will boost investment in U.S. manufacturing and create good-paying jobs here at home.
  • Make big corporations start paying their fair share in taxes and invest those resources to lift up working people, particularly by raising wages for child care and home-care workers.
  • Give working families economic relief by establishing universal preschool and ensuring that child care is accessible and affordable for all families in America.
  • Reduce child poverty nearly in half through the continuation of President Biden’s child tax credit for 2022, with low-income families made permanently eligible for the full benefit.
  • Expand health coverage to millions more Americans, saving thousands of lives each year.

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