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American "Super Rich" Feel "Immense Relief" As 'BBB' Tax Hikes Are Canceled

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by Tyler Durden
Tuesday, Dec 21, 2021 - 11:40 PM

Apparently, the Dems have managed to "turn down the heat" on the epic failure of President Biden's Build Back Better social and climate spending package, according to at least one Washington Post columnist.

But in case you were wondering, Michael Bloomberg and the rest of the Democrat-voting globalist billionaire class would like to remind you that the wealthy are all extremely relieved at the prospect of President Biden's spending package failing.

And it's all Joe Manchin's fault.

Here's a headline from Bloomberg Wealth on Monday: "Super-Rich Americans Feel Relief as Tax Hikes Are Canceled for Now".

Thanks to Sen. Manchin's efforts, rich Americans will escape any tax hikes, saving the top 0.1% hundreds of billions of dollars over the next decade, according to Bloomberg.

"To say my clients were celebrating is the wrong word to use," said Steven Winter, a partner at BDO who primarily advises hedge funds and private equity firms. "It was a sigh of relief."

Of course, a bunch of  admittedly left-leaning economists say the Democrats' plan would help "reduce inequality."

Though many of Democrats’ more radical tax proposals were scaled back or dropped in negotiations, the bill would be "a meaningful step for reducing inequality," said Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy. An analysis by the group estimated the plan’s changes to the child tax credit and earned income tax credit would boost incomes of the poorest fifth of Americans by more than 10%.

You know who else was happy to see the bill fail? The Republican leadership.

Republicans, who uniformly oppose Biden’s bill, were gleeful that it might fail. "The single biggest Christmas present Washington Democrats could give to the American people is to kill their reckless taxing and spending spree," Senate GOP leader Mitch McConnell said in a tweet.

[...]

Meanwhile, the very richest Americans have reaped massive windfalls. The net worths of Americans on the Bloomberg Billionaires Index, a daily ranking of the world’s 500 richest people, have surged 45% since the beginning of last year. The 169 U.S. billionaires on the list are now worth $3.5 trillion, more than the bottom half of Americans combined.

As for the BBB agenda, as we have already said, Sen. Manchin has previously expressed concerns with the “Paid Leave” component of the bill and believes it should be passed in a bipartisan effort in a separate bill. The SALT cap may also face some concern as it is expected to be one of the most expensive parts in the bill. Manchin has also raised concerns that 10 years of funding should pay for 10 years of services, while Child Care aid only lasts for six years, and cheaper premiums on the Affordable Health Care Act only last for five years. If the Senate were to make adjustments, the bill would then have to be sent back to the House.

Here are some recent comments from Moderates:

  • Manchin said Thursday 18th November he has not decided on whether to vote to proceed to the Build Back Better Bill, says the House passage of the bill would not influence his thinking.
  • Sinema, in an interview with WaPo, noted Biden's spending plan differs from the blueprint that Biden had worked out with centrists weeks earlier, but she did not say what, if anything, she might change. She also reiterated she is worried about inflation and that new tax hikes could harm businesses still struggling in wake of the pandemic, adding she doesn’t think the solution is always more federal spending.

Remember, President Biden supposedly promised the squad that this package would get done. They might not be so accommodating during what's left of his presidency going forward.

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