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Wealthy Business Owners Are at Center of Fight Over Biden’s Tax Plan

  • Schumer’s tax plan is key to Democrats’ economic plan
  • Business groups say Medicare tax would hurt small businesses
President Joe Biden

President Joe Biden

Photographer: Ting Shen/Bloomberg
Updated on

Democrat Joe Manchin said Senate Majority Leader Chuck Schumer’s plan to expand taxes on some businesses to bolster Medicare needs more scrutiny and again raised alarms about inflation, potentially complicating Democrats’ attempt to pass a broad economic package.

The West Virginia senator, who has been negotiating the contours of an economic plan with Schumer for weeks, said the proposal rolled out last week to increase taxes on pass-through entities, like limited partnerships and other small businesses, should be analyzed to make sure that it doesn’t fuel inflation or harm taxpayers.