Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

U.S. Tax Overhaul Shelved, Imperiling Credits, Millionaire Levy

Dec. 20, 2021, 8:52 PM

A host of Biden administration and Democratic tax priorities sank into deep jeopardy on Sunday, imperiling the backbone of the party’s messaging for the midterm elections.

Moderate Democratic Senator Joe Manchin’s opposition to Biden’s economic agenda threatens the party’s ability to maintain expanded child tax-credit payments -- with the final disbursement out in mid-December -- or to enlarge the federal deduction for state and local taxes.

Democrats hoped those two tax-cutting efforts would help them maintain House and Senate majorities, particularly in suburban swing districts where the cost of raising children and property taxes are top concerns for many ...