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Democrats jumpstart efforts to bypass Republicans on follow-up $3.5 trillion spending plan poised to raise taxes on wealthy Americans

Aug 10, 2021, 23:37 IST
Business Insider
Senate Majority Leader Chuck Schumer and Sen. Bernie Sanders walk out after a meeting on a planned $3.5 trillion spending plan. Win McNamee/Getty Images
  • Senate Democrats started a party-line process to draft a follow-up $3.5 trillion spending plan on Tuesday.
  • Every Senate Democrat voted to clear the plan, with every GOP senator in opposition.
  • But the size of the plan may be cut due to concern from moderates it's too large.
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Senate Democrats voted to begin taking up a $3.5 trillion budget resolution on Tuesday, starting what will likely be a months-long effort to sidestep Republicans on a follow-up spending plan that's poised to raise taxes on wealthy Americans and prompt a major expansion of the social safety net.

All 50 Senate Democrats banded together to start debate on the plan, the first step in the reconciliation process. This path allows passage of certain bills with a simple majority of 51 votes, instead of the 60 typically required in the Senate. The move came immediately after the Senate approved President Joe Biden's $1 trillion infrastructure bill.

The resolution will instruct a dozen committees to start drafting the spending bill with a Sept. 15 deadline. But they will first proceed to a so-called "vote-a-rama" where Republicans are expected to file a barrage of non-binding amendments to alter the plan.

No Republicans supported advancing the measure, and many are fiercely criticizing it as a liberal wish-list filled with tax hikes that will set back the economic recovery.

The spending plan would expand Medicare so it covers dental, vision, and hearing. It would also set up a program for paid family and medical leave, tuition-free community college, a child allowance, and clean-energy provisions to combat the climate crisis.

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Democrats aim to finance it with a range of tax hikes on wealthy Americans and large firms. But keeping in line with a Biden campaign pledge, they say no tax increases will hit Americans making below $400,000.

Democrats widely view the blueprint as a historic one, but it could cause infighting over the size and scope. Sen. Kyrsten Sinema of Arizona said recently she won't approve a final plan carrying such a hefty price tag. She ultimately voted to start the party-line process.

This story will be updated.

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