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    As Democrats Trim Spending Bill, Some Americans Fear Being Left Behind

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    President Biden had an ambitious agenda to remake the economy. But under the duress of negotiations and Senate rules, he has shelved a series of proposals, some of them indefinitely.WASHINGTON — Democrats in Congress are curbing their ambitions for President Biden’s economic agenda, and Jennifer Mount, a home health care aide, worries that means she will not get the raise she needs to pay more than $3,000 in medical bills for blindness in one eye.Edison Suasnavas, who came to the United States from Ecuador as a child, has grown anxious about the administration’s efforts to establish a pathway to citizenship, which he hoped would allow him to keep doing molecular tests for cancer patients in Utah without fear of deportation.And Amy Stelly wonders — thanks to a winnowing of Mr. Biden’s plans to invest in neighborhoods harmed by previous infrastructure projects like highways that have harmed communities of color — whether she will continue to breathe fumes from a freeway that she says constantly make her home in New Orleans shudder. She has a message for the president and the Democrats who are in the process of trying to pack his sprawling agenda into a diminishing legislative package.“You come up and live next to this,” Ms. Stelly said. “You live this quality of life. We suffer while you debate.”Mr. Biden began his presidency with an expensive and wide-ranging agenda to remake the U.S. economy. But under the duress of negotiations and Senate rules, he has shelved a series of his most ambitious proposals, some of them indefinitely.He has been thwarted in his efforts to raise the federal minimum wage and create a pathway to citizenship for undocumented immigrants. He has pared back investments in lead pipe removal and other efforts that would help communities of color. Now, as the president tries to secure votes from moderates in his party, he is reducing what was originally a $3.5 trillion collection of tax cuts and spending programs to what could be a package of $2 trillion or less.That is still an enormous spending package, one that Mr. Biden argues could shift the landscape of the economy. But a wide range of Americans who have put their faith in his promises to reshape their jobs and lives are left to hope that the programs they are banking on will survive the cut; otherwise, they face the prospect of waiting years or perhaps decades for another window of opportunity in Washington.“The problem now is this may be the last train leaving the station for a long time,” said Jason Furman, an economist at the Harvard Kennedy School who was a top economic adviser to President Barack Obama. “It could be five, 10, 20 years before there’s another shot at a lot of these issues.”President Biden entered the White House with an expensive and ambitious agenda to remake the U.S. economy. He has pared back those plans.Tom Brenner for The New York TimesMr. Furman and other former Obama administration officials saw firsthand how quickly a presidential agenda can shrink, and how presidential and congressional decisions can leave campaign priorities unaddressed for years. Mr. Obama prioritized an economic stimulus package and the creation of the Affordable Care Act over sweeping immigration and climate legislation in the early years of his presidency.Stimulus and health care passed. The other two did not. A similar fate now could befall Mr. Biden’s plans for home care workers, paid leave, child care subsidies, free prekindergarten and community college, investments in racial equity and, once again, immigration and climate change.If Mr. Biden is able to push through a compromise bill with major investments in emissions reduction, “he’s got an engine that he’s working with” to fight climate change, said John Podesta, a former top aide to Mr. Obama and President Bill Clinton. “If he can’t get it, then I think, you know, we’re really kind of in soup, facing a major crisis.”Republicans have criticized the spending and the tax increases that would help fund it, claiming that the Democratic package would hurt the economy. Democrats “just have an insatiable appetite to raise taxes and spend more money,” Representative Steve Scalise, Republican of Louisiana, said on “Fox News Sunday” this week. “It would kill jobs.”Amy Stelly said she wondered whether she would continue to breathe fumes from the Claiborne Expressway, which is near her home in New Orleans.Edmund D. Fountain for The New York TimesThe threat of Republican filibusters has blocked Mr. Biden’s plans for gun and voting-rights legislation.For now, though, the president’s biggest problem is his own party. He is negotiating with progressives and moderates over the size of the larger tax and spending package. Centrists like Senators Joe Manchin III of West Virginia and Kyrsten Sinema of Arizona have pushed for the price tag to fall below $2 trillion. Mr. Manchin has said he wants to limit the availability of some programs to lower- and middle-income earners. Progressive groups are jockeying to ensure that their preferred plans are not cut entirely from the bill.The House has proposed investing $190 billion in home health care, for example, less than half of what Mr. Biden initially asked for. If the price tag continues to decrease, Democrats would almost certainly have to choose between two concurrent aims: expanding access to older Americans in need of caretakers or raising the wages of those workers, a group that is disproportionately women of color.Another proposal included in Mr. Biden’s original infrastructure bill was an investment of $20 billion to address infrastructure that has splintered communities of color, although the funding was slashed to $1 billion through a compromise with Republican senators.Ms. Stelly thought the funds, plus the president’s sweeping proposals to address climate change — which might also be narrowed to appease centrist Democrats — would finally result in elected officials addressing the highway emissions that have filled her lungs and darkened the windows of her home.Ms. Stelly, an urban designer, has since limited her expectations. She said she hoped the funding would be enough to at least issue another study of the highway, which claimed dozens of Black-owned businesses and the once-thriving neighborhood of Tremé.The Claiborne Expressway bisects the residential neighborhood of Tremé in New Orleans. Ms. Stelly said she hoped the funding would be enough for another study on the effects of the highway.William Widmer for The New York TimesSome Democrats are eager to pack as much as they can into the bill because they fear losing the House, the Senate or both in the midterm elections next year. Mr. Podesta has urged lawmakers to see the package as a chance to avoid those losses by giving Democratic incumbents a batch of popular programs to run on, and also giving the president policy victories that could define his legacy.Mr. Biden has promoted some of his policies as ways to reverse racial disparities in the economy and lift families that are struggling in the coronavirus pandemic from poverty.Ms. Mount, who immigrated to the United States from Trinidad and Tobago, said she was appreciative of her job helping older Americans and the disabled eat and bathe and assisting them in their homes. But her wages for her long hours — working about 50 hours a week for $400, at times — have made it effectively impossible to stay on top of payments for basic needs.She had hoped Mr. Biden’s plan to raise the minimum wage or salaries for home health care aides meant she would no longer need to choose between her electric bills and her medical expenses. She said the treatment had improved her blindness, but without a salary increase for her field, she is more convinced that she will be working for the rest of her life.“I have to make a choice: Do I go to the grocery store or pay my mortgage? Do I pay my water bill or pay my electric bill?” said Ms. Mount, who lives in Philadelphia. “With that, retirement looks B-L-E-A-K, all uppercase. What do I have there for retirement?”When Mr. Biden initially proposed two years of free community college, Ms. Mount, 64, was encouraged about future opportunities for her six grandchildren in the United States. But she fears that effort could also be cut.“That’s politics from on top,” she said. “At times, they always seem detached.”Protesters gathered in front of the White House in August in support of the DACA program, which protects young immigrants from deportation.Andrew Caballero-Reynolds/Agence France-Presse — Getty ImagesSome measures that Democrats have long promised voters have run afoul of Senate rules that dictate which policies the administration should include in bills that use a special process to bypass the filibuster, including a minimum-wage increase and a plan to offer citizenship to immigrants brought to the United States as children.When the Senate parliamentarian rejected the strategy, it made Mr. Suasnavas, who has lived in the United States since he was 13, consider the prospect of eventually being deported; he would have to leave behind his job as a medical technology specialist, and his 6-year-old daughter and 2-year-old son.“We’ve been having the hopes that politicians in Washington — Democrats and Republicans — will see not only the economic impact we can bring to the country but also we’re still people with families,” said Mr. Suasnavas, 35. “Our hearts have been broken so many times that it feels like another wound in your skin.” More

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    Are Tesla and Texas a Perfect Match? It’s Questionable.

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    While its C.E.O., Elon Musk, and the state’s conservative lawmakers share libertarian sensibilities, they differ greatly on climate change and renewable energy.Tesla’s move from Silicon Valley to Texas makes sense in many ways: The company’s chief executive, Elon Musk, and the conservative lawmakers who run the state share a libertarian philosophy, favoring few regulations and low taxes. Texas also has room for a company with grand ambitions to grow.“There’s a limit to how big you can scale in the Bay Area,” Mr. Musk said Thursday at Tesla’s annual meeting hosted at its new factory near the Texas capital. “Here in Austin, our factory’s like five minutes from the airport, 15 minutes from downtown.”But Texas may not be the natural choice that Mr. Musk makes it out to be.Tesla’s stated mission is to “accelerate the world’s transition to sustainable energy,” and its customers include many people who want sporty cars that don’t spew greenhouse gases from their tailpipes. Texas, however, is run by conservatives who are skeptical of or oppose efforts to address climate change. They are also fiercely protective of the state’s large oil and gas industry.And, despite the state’s business-friendly reputation, Tesla can’t sell vehicles directly to customers there because of a law that protects car dealerships, which Tesla does not use.Tesla’s move is not surprising: Mr. Musk threatened to leave California in May 2020 after local officials, citing the coronavirus, forced Tesla to shut down its car factory in the San Francisco Bay Area. But his decision to move to Texas highlights some gaping ideological contradictions. His company stands at the vanguard of the electric car and renewable energy movement, while Texas’ lawmakers, who have welcomed him enthusiastically, are among the biggest resisters to moving the economy away from oil and natural gas.“It’s always a feather in Texas’ hat when it takes a business away from California, but Tesla is as much unwelcome as it is welcome,” said Jim Krane, an energy expert at Rice University in Houston. “It’s an awkward juxtaposition. This is a state that gets a sizable chunk of its G.D.P. from oil and gas and here comes a virulent competitor to that industry.”In February, a rare winter storm caused the Texas electric grid to collapse, leaving millions of people without electricity and heat for days. Soon after, the state’s leaders sought — falsely, according to many energy experts — to blame the blackout on renewable energy.“This shows how the Green New Deal would be a deadly deal for the United States of America,” Gov. Greg Abbott said of the blackout on Fox News. “It just shows that fossil fuel is necessary for the state of Texas as well as other states to make sure we will be able to heat our homes in the wintertimes and cool our homes in the summertimes.”Mr. Musk, a Texas resident since last year, seemed to offer a very different take on Thursday, suggesting that renewable energy could in fact protect people from power outages.“I was actually in Austin for that snowstorm in a house with no electricity, no lights, no power, no heating, no internet,” he said. “This went on for several days. However, if we had the solar plus Powerwall, we would have had lights and electricity.”Tesla is a leading maker of solar panels and batteries — the company calls one of its products Powerwall — for homeowners and businesses to store renewable energy for use when the sun has gone down, when electricity rates are higher or during blackouts. The company reported $1.3 billion in revenue from the sale of solar panels and batteries in the first six months of the year.Mr. Musk’s announcement that Tesla would be moving its headquarters from Palo Alto, Calif., came with few details. It is not clear, for example, how many workers would move to Austin. It’s also unknown whether the company would maintain a research and development operation in California in addition to its factory in Fremont, which is a short drive from headquarters and which it said it would expand. The company has around 750 employees in Palo Alto and about 12,500 in total in the Bay Area, according to the Silicon Valley Institute for Regional Studies.It is also not clear how much money Tesla will save on taxes by moving. Texas has long used its relatively low taxes, which are less than California’s, to attract companies. County officials have already approved tax breaks for the company’s new factory, and the state might offer more.Over the years, California granted Tesla hundreds of millions of dollars in tax breaks, something that Gov. Gavin Newsom noted on Friday. But because Tesla will continue to have operations in California, it may still have to pay income tax on its sales in the state, said Kayla Kitson, a policy analyst at the California Budget & Policy Center.Whatever incentives they offer Tesla, Texas officials are not likely to change their support for the fossil fuel industries with which the company competes.In a letter to state regulators in July, Mr. Abbott directed the Public Utility Commission to incentivize the state’s energy market “to foster development and maintenance of adequate and reliable sources of power, like natural gas, coal and nuclear power.”A Tesla factory under construction in Austin in September.Joe White/ReutersThe governor also ordered regulators to charge suppliers of wind and solar energy “reliability” fees because, given the natural variability of the wind and the sun, suppliers could not guarantee that they would be able to provide power when it was needed.Mr. Abbott’s letter made no mention of battery storage, suggesting that he saw no role for a technology that many energy experts believe will become increasingly important in smoothing out wind and solar energy production. Tesla is a big player in such batteries. Its systems have helped electric grids in California, Australia and elsewhere, and the company is building a big battery in Texas, too, Bloomberg reported in March.Texas has no clean energy mandates, though it has become a national leader in the use of solar and wind power — driven largely by the low cost of renewable energy. The state produces more wind energy than any other.Another issue that divides Tesla and Texas is the state’s law about how cars can be sold there.As in some other states, Texas has long had laws to protect car dealers by barring automakers, including Tesla, from selling directly to consumers. California, the company’s biggest market by far, has long allowed the company to sell cars directly to buyers, which lets it earn more money than if it had to sell through dealers.Tesla has showrooms around Texas, but employees are not even allowed to discuss prices with prospective buyers and the showrooms cannot accept orders. Texans can buy Teslas online and pick the vehicles up at its service centers.Once the Austin factory starts producing vehicles, including a new pickup truck Tesla calls Cybertruck, those vehicles will have to leave the state before they can be delivered to customers in Texas.Efforts to change the law by Tesla and some state lawmakers have gone nowhere, including during the legislative session that concluded this year. That’s partly because car dealers have tremendous political influence in the state.Perhaps once Tesla has moved to Austin and started producing cars, Mr. Musk might have enough political clout to get the Legislature to act. Texas lawmakers typically meet only every two years, however, so it would most likely take at least until 2023 for the company’s customers to receive a car directly from its factory there.Michael Webber, professor of mechanical engineering at the University of Texas at Austin, said Mr. Musk’s decision to move to Texas might have been influenced in part by the ability to pressure the state to change its law.“The Texas car market is the second-largest car market in America after California, so if you are selling cars it kind of makes sense to get closer to your customers,” Mr. Webber said. “The Texas car market is particularly difficult outside of cities because of the legislative barriers.”There were already signs on Friday that some in Texas, including those involved in oil and gas and related industries, were happy to have Tesla because it could eventually employ thousands of people.“It can only be positive for Texas, because it brings more business to Texas,” said Linda Salinas, vice president for operations at Texmark Chemicals, which is near Houston. “Even though it’s not fossil business, it’s still business.”She said Texmark might even benefit from Tesla’s manufacturing operations in the state. “Texmark produces and sells mining chemicals to people who mine copper, and guess what batteries are made out of?”Peter Eavis More

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    Biden Huddles With Democrats as Divisions Threaten His Agenda

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    Democrats are nearing a make-or-break moment for President Biden’s agenda, with party divisions imperiling top-priority legislation and fiscal crises looming.WASHINGTON — President Biden huddled with congressional Democrats on Wednesday to try to break through a potentially devastating impasse over his multitrillion-dollar domestic agenda, toiling to bridge intraparty divisions over an ambitious social safety net bill and a major infrastructure measure as Congress raced to head off a fiscal calamity.Democrats on both ends of Pennsylvania Avenue are nearing a make-or-break moment in their bid to push through huge new policies, as an escalating fight between the progressive and moderate wings — and a multitude of other divisions within the party — threatens to sink their chances of doing so while they retain control in Washington.At the same time, even the basic functions of Congress — keeping the government from shutting down next week and from defaulting on its debt sometime next month — are in peril as Republicans refuse to support legislation that would both fund the government and increase the statutory cap on federal borrowing.The challenges are unfolding against a backdrop of mistrust and strife within Democratic ranks. Moderates are pressing for quick action on the $1 trillion bipartisan infrastructure bill; progressives are demanding approval first of a far-reaching, $3.5 trillion domestic policy plan including vast new investments in climate, education, health and social programs.Without consensus on both, Democrats, who have minuscule majorities in the House and Senate, will not have enough votes to send either to Mr. Biden’s desk. That prospect has sown alarm at the top echelons of the party.On Wednesday, John D. Podesta, who held key White House roles under Presidents Bill Clinton and Barack Obama, sent a memo to every Democrat on Capitol Hill imploring them to scale back the $3.5 trillion plan in the interest of compromise, warning that doing otherwise would risk sinking both bills and costing the party control of Congress in next year’s midterm elections.“You are either getting both bills or neither — and the prospect of neither is unconscionable,” he wrote. “It would signal a complete and utter failure of our democratic duty, and a reckless abdication of our responsibility. It would define our generation’s history and show that, when our time came, we failed, both for Americans now and in the years to come.”Mr. Biden’s long day of meetings with lawmakers reflected a recognition that “there needs to be a deeper engagement by the president” to bring Democrats together, said Jen Psaki, the White House press secretary.The president, she added, “sees his role as uniting and as working to bring together people over common agreement and on a path forward.”That path is exceedingly murky as Democrats careen toward a tangle of fiscal and political deadlines with no discernible public strategy in place, but party leaders remained publicly sanguine on Wednesday..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-1kpebx{margin:0 auto;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-1kpebx{font-size:1.25rem;line-height:1.4375rem;}}.css-1gtxqqv{margin-bottom:0;}.css-19zsuqr{display:block;margin-bottom:0.9375rem;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}“We are on schedule — that’s all I will say,” Speaker Nancy Pelosi told reporters after meeting with Mr. Biden for more than an hour. “We’re calm, and everybody’s good, and our work’s almost done.”But Democrats conceded that the process was painful.“When you’ve got 50 votes and none to lose, and you’ve got three to spare in the House, there’s a lot of give and take — that’s just the way it is,” said Senator Bernie Sanders, the Vermont independent who is chairman of the Budget Committee. “It’s tough. But I think at the end of the day, we’re going to be fine.”At the crux of the stalemate is a leadership commitment to a group of moderate Democrats that the House would take up the Senate-passed bipartisan infrastructure bill by Monday. Liberal House Democrats say they will vote down the measure until their priority legislation first clears both the House and Senate.Those Democrats say the infrastructure bill, which omitted most of their top priorities including major provisions to combat climate change, cannot be separated from the $3.5 trillion package, which contains many of those elements, such as a shift to electric power. Beyond the climate portions, the social policy measure would, among many other things, extend child care and child tax credits, expand free prekindergarten and community college and fortify Medicare.But key centrists in the Senate have balked at that package, which Democrats plan to push through using a fast-track budget process known as reconciliation that shields it from a filibuster. Senators Joe Manchin III of West Virginia and Kyrsten Sinema of Arizona both voted to begin work on a $3.5 trillion measure, but have since warned they will not support spending that much.On Wednesday, Mr. Biden urged the holdouts to specify exactly what they would support, so Democrats could coalesce behind a plan that could pass.“Find a number you’re comfortable with, based on what you believe the needs that we still have, and how we deliver to the American people,” Mr. Manchin said, describing the president’s request. “He was very straightforward in what he asked us to do.”The internal disputes are escalating just as Congress is facing urgent deadlines. Without congressional action, at 12:01 a.m. next Friday, federal funding will lapse, shutting down the government. And at some point in October, the Treasury Department will reach its statutory borrowing limit, forcing it to halt some payments to international creditors, Social Security recipients and government contractors.Amid those looming crises, Republican leaders are practically taunting Democrats, refusing to back legislation coupling a debt-limit increase and a stopgap spending measure.“Don’t play Russian roulette with the economy; step up and raise the debt ceiling,” Senator Mitch McConnell of Kentucky, the Republican leader, said on Wednesday, even as he vowed not to give Democrats a single Republican vote.Senator Mitch McConnell of Kentucky, the Republican leaders, is encouraging Democrats to raise the debt ceiling even as he tells his own caucus to vote against it.Sarahbeth Maney/The New York TimesAnd House Republicans on Wednesday urged their rank-and-file members to oppose the bipartisan infrastructure bill that they said had been “inextricably linked” to the reconciliation package.“Republicans should not aid in this destructive process,” the office of Representative Steve Scalise of Louisiana, the No. 2 Republican, warned in a notice calling for “no” votes.On Wednesday, a bipartisan group of former Treasury secretaries wrote to congressional leaders in both parties to express a “deep sense of urgency” to raise the debt limit. Jerome H. Powell, the Federal Reserve chair, offered a similar plea in a news conference.“No one should assume that the Fed or anyone else can protect the markets and the economy, fully protect, in the event of a failure to make sure that we do pay those debts when they’re due,” he said..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-w739ur{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-w739ur{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-w739ur{font-size:1.25rem;line-height:1.4375rem;}}.css-9s9ecg{margin-bottom:15px;}.css-16ed7iq{width:100%;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-webkit-justify-content:center;-ms-flex-pack:center;justify-content:center;padding:10px 0;background-color:white;}.css-pmm6ed{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;}.css-pmm6ed > :not(:first-child){margin-left:5px;}.css-5gimkt{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.8125rem;font-weight:700;-webkit-letter-spacing:0.03em;-moz-letter-spacing:0.03em;-ms-letter-spacing:0.03em;letter-spacing:0.03em;text-transform:uppercase;color:#333;}.css-5gimkt:after{content:’Collapse’;}.css-rdoyk0{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-eb027h{max-height:5000px;-webkit-transition:max-height 0.5s ease;transition:max-height 0.5s ease;}.css-6mllg9{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;position:relative;opacity:0;}.css-6mllg9:before{content:”;background-image:linear-gradient(180deg,transparent,#ffffff);background-image:-webkit-linear-gradient(270deg,rgba(255,255,255,0),#ffffff);height:80px;width:100%;position:absolute;bottom:0px;pointer-events:none;}.css-uf1ume{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}.css-wxi1cx{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;-webkit-align-self:flex-end;-ms-flex-item-align:end;align-self:flex-end;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}Beyond that issue, Democrats must find a way to salvage Mr. Biden’s agenda. They had hoped to emerge from Wednesday’s meeting with public commitments from key moderates including Mr. Manchin and Ms. Sinema to support a reconciliation bill, but by evening they still had no such statement from the two senators.Offering “Covid-safe” individually wrapped chocolate chip cookies bearing the presidential seal, Mr. Biden spent much of the day on Wednesday hosting groups of lawmakers in the Oval Office, beginning with Ms. Pelosi and Senator Chuck Schumer of New York, the majority leader.He met with nearly two dozen senators and House members from across the ideological range of his party, including liberal leaders and some of the moderates who played key roles in negotiating the infrastructure bill.By Monday, leaders hope to reach agreement on a total price for the reconciliation measure, which will likely fall below the $3.5 trillion budget blueprint, and an ironclad agreement on some key provisions that must be in the final package.So far, neither side is budging. Representative Alexandria Ocasio-Cortez, Democrat of New York, accused more conservative Democrats of making “impulsive and arbitrary demands,” while setting unnecessary deadlines like the Monday infrastructure vote.“The package, the investments and the programs that we have in there are rather nonnegotiable. That’s why we are kind of at this impasse,” she said, adding, “We are at a moment, and a test of political will.”Representative Stephanie Murphy, a moderate from Florida, said it would be “really disappointing and embarrassing” if the infrastructure bill failed because of opposition from progressives.After her meeting with Mr. Biden, Representative Pramila Jayapal of Washington, the chairwoman of the Congressional Progressive Caucus, said that “there isn’t a lot of trust” among Democrats, reiterating that liberals would follow through on their promise to vote against the infrastructure measure on Monday.But the list of moderate objections is long and varied. Representative Kurt Schrader of Oregon wants a bill that spends less than $1 trillion over 10 years. Representative Ed Case of Hawaii has said he will not accept phasing in or phasing out of programs and tax measures to mask their true costs if made permanent. Representative Kathleen Rice of New York objects to the get-tough approach to curb prescription drug prices.And the disputes go beyond ideological differences. Representative Tom Suozzi of New York says he will not vote for any version that does not substantially reinstate the state and local tax deduction, a crucial issue for high-tax states. Representative Alma Adams of North Carolina says she will oppose the bill if it does not include tens of billions of dollars more for historically Black colleges and minority-serving institutions.Democrats across the ideological spectrum said forging consensus would be a tall order.“We’ve got a hectic few days ahead,” Representative Josh Gottheimer, a moderate from New Jersey, said after emerging from his negotiating session with Mr. Biden and other lawmakers.Catie Edmondson More

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    What Will It Take for Electric Vehicles to Create Jobs, Not Cut Them?

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    A report by a liberal think tank tries to quantify the potential employment gains and losses, concluding that subsidies will be crucial.When President Biden announced his multitrillion-dollar jobs plan in March, it included nearly $175 billion in spending to encourage Americans to buy electric vehicles.The money would help ensure “that these vehicles are affordable for all families and manufactured by workers with good jobs,” the White House wrote at the time.Now, as Mr. Biden’s plan wends its way through Congress, a liberal think tank has tried to flesh out the number of jobs to be gained or lost in the transition away from internal-combustion vehicles.The report, released Wednesday by the Economic Policy Institute, concluded that it would take government subsidies focused on developing a domestic supply chain and increasing demand for U.S.-made vehicles to avoid job losses.It found that without additional government investment, the industry could lose about 75,000 jobs by 2030, the year by which Mr. Biden wants half the new vehicles sold in the country to be electric.By contrast, the report said, if government subsidies were targeted to increase the portion of electric vehicle components that are manufactured domestically, and to increase the market share of U.S.-made vehicles, the industry could add about 150,000 jobs by the end of the decade.“That’s the payoff — making the sector a center of good jobs again,” said Josh Bivens, an economist who is one of the report’s authors. “If we don’t try to react proactively with good policy we’ll see continued downward pressure on the number of good jobs.”Looming over the transition to electric vehicles is the fact that they have substantially fewer moving parts than gasoline-powered ones and require less labor to manufacture — about 30 percent less, according to figures from Ford Motor. The vehicle-manufacturing industry employs a little under one million people domestically, including suppliers.The cab of an all-electric Ford F-150 Lightning truck prototype. Ford and General Motors have said they are taking on a greater role in battery production.Rebecca Cook/ReutersThere are essentially two ways to offset the projected job losses: to increase the proportion of each vehicle’s parts that are made domestically — specifically in the powertrain, the key parts and systems that power a car — and to sell more vehicles assembled in the United States.Mr. Bivens and his co-author, James Barrett, an economic consultant, examine the effects of doing both. They note that roughly three-quarters of the parts in the powertrain for a U.S.-made gasoline vehicle are produced domestically, versus less than half of the parts in the powertrain of a U.S.-made electric vehicle.Raising the proportion of domestic content in electric vehicles so that it mirrors gas-powered ones could save tens of thousands of jobs a year, they estimate — potentially more than half the likely job losses that would arise without additional government action.But to transform likely job deficits into job gains, Mr. Barrett and Mr. Bivens find, it is necessary to increase the market share of vehicles made in the United States. According to the study, the percentage of vehicles sold in the United States that are made domestically has hovered around 50 percent over the past decade. If it were to rise to 60 percent, the authors conclude, the industry could gain over 100,000 jobs in 2030.If market share were instead to drop to 40 percent by the end of the decade and there were no increase in the domestic content of electric vehicle powertrains, the industry could lose more than 200,000 jobs, the report finds.Under the Democratic plan circulating in Congress, a current $7,500 tax credit for the purchase of a new electric vehicle would rise as high as $12,500. An extra $4,500 would apply to vehicles assembled at unionized factories in the United States. Consumers would receive the final $500 if their vehicle had a U.S.-made battery. The details could change in the face of opposition from automakers with nonunion U.S. plants.Democrats are also discussing subsidies to encourage manufacturers to set up new factories or upgrade old ones.Sam Abuelsamid, an auto industry analyst at Guidehouse Insights, said that domestic automakers had an opportunity to increase market share as the industry electrifies and that an expanded consumer tax credit would help.“They are targeting a lot of the market segments that are particularly strong-selling — crossovers, pickups,” Mr. Abuelsamid said. “There is definitely potential for them to claw back some market share from Asian brands.”Still, he warned, the window for seizing the opportunity could be relatively narrow as Asian automakers like Toyota and Honda, which have lagged somewhat in their electric vehicle planning, introduce more electric offerings.The question of whether manufacturers will locate production of electric vehicles and their components in the United States as demand grows, and the extent to which government subsidies can help ensure that this happens, has been a subject of debate in recent years.Dale Hall, a researcher at the International Council on Clean Transportation, a research organization, said in an interview that electric vehicles tend to be manufactured in the region where they are sold, both to save on transportation costs and to be more responsive to consumers’ needs. More

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    House Democrats’ Plan to Tax the Rich Leaves Vast Fortunes Unscathed

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    The House Ways and Means Committee’s proposal to pay for trillions in social spending leaves wealth gains and inheritances largely alone. It focuses instead on a more traditional target: income.WASHINGTON — House Democrats on Monday presented a plan to pay for their expansive social policy and climate change package by raising taxes by more than $2 trillion, largely on wealthy individuals and profitable corporations.But the proposal, while substantial in scope, stopped well short of changes needed to dent the vast fortunes of tycoons like Jeff Bezos and Elon Musk, or to thoroughly close the most egregious loopholes exploited by high-flying captains of finance. It aimed to go after the merely rich more than the fabulously rich.Facing the delicate politics of a narrowly divided Congress, senior House Democrats opted to be more mindful of moderate concerns in their party than of its progressive ambitions. They focused on traditional ways of raising revenue: by raising tax rates on income rather than targeting wealth itself.Representative Dan Kildee of Michigan, a Democrat on the Ways and Means Committee, which crafted the plan, called it “the boldest common denominator.”“Being for something doesn’t make it law; 218 votes in the House, 50 votes in the Senate and the president’s signature make it law,” he said, adding, “What I don’t want is another noble defeat.”The proposal includes nearly $2.1 trillion in increased tax revenues, the nonpartisan Joint Committee on Taxation estimated on Monday. Democrats say those increases will go a long way to funding President Biden’s ambitions to expand the federal government’s role in education, health care, climate change, paid leave and more.But the bill dispenses with measures floated by the White House and Senate Democrats to tax wealth or to close off avenues that the superrich have exploited to pass on a lifetime of gains to their heirs tax-free.“It would be a monumental mistake for Congress to pass a bill that really exempts billionaires,” said Senator Ron Wyden of Oregon, the Democratic chairman of the Finance Committee.Key Democrats cautioned on Monday that the House proposal was likely to change — perhaps considerably — as Mr. Biden’s economic agenda wends its way through the House and Senate, where Democrats hold slim majorities and must hold nearly every member of their ideologically diverse caucus together. But White House officials welcomed the Ways and Means plan and said it took important steps toward the president’s vision of a tax code that rewards ordinary workers at the expense of the very rich.The proposal includes substantial measures to raise taxes on the rich. Taxable income over $450,000 — or $400,000 for unmarried individuals — would be taxed at 39.6 percent, the top rate before President Donald J. Trump’s 2017 tax cut brought it to 37 percent. The top capital gains rate would rise to 25 percent from 20 percent, considerably less than a White House proposal that would have taxed investment gains as income for the richest, at 39.6 percent.Under the committee’s plan, a 3 percent surtax would be applied to incomes over $5 million.The proposal would also raise taxes in a variety of ways on businesses called pass-through entities — like many law firms and financial companies — that distribute profits to their owners, who then pay individual income taxes on them. Those changes, including the extension of an existing 3.8 percent surtax to include pass-through income, would raise taxes primarily on high earners, generating several hundred billion dollars in revenues, by Democratic estimates.The joint committee estimated on Monday that the changes would raise about $1 trillion from high-income individuals.Republicans balked at the proposal. Business lobbying groups rejected the package, with the U.S. Chamber of Commerce slamming it as “an existential threat to America’s fragile economic recovery and future prosperity.”“President Biden, Speaker Nancy Pelosi and House Democrats are ramming through trillions of wasteful spending and crippling tax hikes that will drive prices up even higher, kill millions of American jobs and drive them overseas, and usher in a new era of government dependency with the greatest expansion of the welfare state in our lifetimes,” Representative Kevin Brady of Texas, the committee’s ranking Republican, said of the plan.But what is not included is notable. The richest of the rich earn little from actual paychecks (Mr. Bezos’s salary as the founder of Amazon was $81,840 in 2020), so a surtax on income would have little impact. Their vast fortunes in stocks, bonds, real estate and other assets grow largely untaxed each year.“The proposal is extremely modest in the area of structural change,” said Eric Toder, a co-director of the nonpartisan Tax Policy Center in Washington. “Mostly, it is about raising rates on existing tax bases.”In the Senate, Democrats are taking aim directly at accumulated wealth. The Finance Committee has proposed a one-time surtax on billionaires’ fortunes, followed by annual levies on the gains in value of billionaires’ assets, similar to the way property taxes are adjusted each year to reflect gains in housing values.Mr. Biden’s expansive tax proposals, during his campaign and as president, did not include a wealth tax. But he and top senators had called for a variety of measures to more heavily tax inherited wealth and the investments of very high earners.Representative Bill Pascrell Jr. of New Jersey, a Democrat on the Ways and Means Committee, conceded on Monday that large swaths of wealth in the country were tied up in assets, not large salaries. But he said many Democrats were leery of going too far.“I am very suspect of a wealth tax,” he said. “I think it’s perceived as ‘soak the rich.’ I don’t think it is, but that’s how it’s perceived.”Representative Bill Pascrell Jr. of New Jersey, a Democrat on the Ways and Means Committee, acknowledged that large swaths of wealth were tied up in assets, not large salaries. But he said many Democrats were leery of going too far.T.J. Kirkpatrick for The New York TimesThe committee did take aim at a loophole in retirement savings exploited by the billionaire Peter Thiel, who, according to a ProPublica investigation, was able to take a Roth individual retirement account worth less than $2,000 in 1999 and grow it to $5 billion, which could be completely shielded from taxation.To prevent such exploitation, the Ways and Means Committee would stop contributions to retirement accounts once they reach $10 million.In other areas, the committee appears to be making only glancing blows at the wealthiest Americans. Former President Barack Obama, Mr. Trump and Mr. Biden have all vowed to close the so-called carried interest loophole, in which private equity managers pay low capital gains taxes on the fees they charge clients, asserting that the money is not income because it is drawn from their clients’ investment gains.Senate Democrats have proposed closing the loophole completely, saving Treasury $63 billion over 10 years. The House proposal would merely limit the practice, forcing Wall Street financiers to hold their clients’ investment gains for five years before claiming them as capital gains and cashing out. It would save $14 billion, a fraction of the Senate proposal.Another item missing from the House plan: a measure to tax inheritances more aggressively. Mr. Biden and many other Democrats want assets such as stocks and real estate to be taxed when they are inherited by wealthy heirs, based on the gain in value from the time the original owner purchased them. Under current law, such assets face capital gains taxation only when they are sold, according to their worth when they were inherited, allowing all the gain in value over the lifetimes of the superwealthy to go untaxed as long as they are passed on to heirs.But the new proposal faced a fierce lobbying campaign, led by rural Democrats like former Senators Heidi Heitkamp of North Dakota and Max Baucus of Montana. Representative Richard E. Neal of Massachusetts, the Democratic chairman of the Ways and Means Committee, left it out.To some liberals, Mr. Neal’s pragmatism felt more like surrender.“America’s billionaires are popping Champagne tonight as the House Ways and Means Committee — led by Chair Richie Neal — fails the president, fails the country and fails history,” said Erica Payne, the president of Patriotic Millionaires, a group of wealthy liberals that embraces much higher taxes on the rich.Some Democrats expressed surprise on Monday at Mr. Neal’s political calculations. “A wealth tax? I don’t know anyone who says that’s not working for them politically,” said Representative Donald S. Beyer Jr., Democrat of Virginia and a member of the committee.But with Senator Joe Manchin III, Democrat of West Virginia, suggesting that the final package might have to be half the size of the House plan, Mr. Beyer said he understood why Democratic leaders did not want to make vulnerable lawmakers embrace the most aggressive options.“People will be saying, ‘You raised our taxes by $2.9 trillion,’” Mr. Beyer said. “Pelosi and leadership do not want to put a lot of threatened members on anything that’s just going to die in the Senate.”White House officials on Monday welcomed the House plan, while acknowledging that it was far from a final product.“We see it as a first step,” said Karine Jean-Pierre, the deputy White House press secretary.Zolan Kanno-Youngs More

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    California Senate Passes Bill Reining In Amazon Labor Model

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    The bill would curb production quotas at Amazon and other companies that critics say are excessive and force workers to forgo bathroom breaks.In the latest sign of the growing scrutiny of Amazon’s labor practices, the California State Senate on Wednesday approved a bill that would place limits on production quotas for warehouse workers.The bill, which passed the Senate 26-to-11, was written partly in response to high rates of injuries at Amazon warehouses. The legislation prohibits companies from imposing production quotas that prevent workers from taking state-mandated breaks or using the bathroom when needed, or that keep employers from complying with health and safety laws.The Assembly, which passed an initial version in May, is expected to approve the Senate measure by the end of the state’s legislative session on Friday.“In the Amazon warehouse space, what we’re trying to take on is this increased use of quotas and discipline based on not meeting the quotas, without a human factor in dealing with a reason why a worker might not make a quota,” Assemblywoman Lorena Gonzalez, the bill’s author, said in an interview last week.Gov. Gavin Newsom had not indicated before the vote whether he would sign the bill, but his staff was involved in softening certain provisions that helped pave the way for its passage.Experts said the bill was novel in its attempts to regulate warehouse quotas that are tracked by algorithms, as at Amazon, and make them transparent.“I believe one of Amazon’s biggest competitive advantages over rivals is this ability to monitor their work force, prod workers to work faster and discipline workers when they fail to meet quotas,” said Beth Gutelius, research director at the Center for Urban Economic Development at the University of Illinois Chicago.“It’s unprecedented for a bill to intervene like this in the ways that technology is used in the workplace,” added Dr. Gutelius, who focuses on warehousing and logistics.Business groups have strongly opposed the bill, complaining that it will lead to costly litigation and hamstring the entire industry even though it is primarily intended to address labor practices at a single company.Amazon has not commented on the bill but has said that it tailors performance targets to individual employees over time based on their experience level and that the targets take into account employee health and safety. The company has emphasized that fewer than 1 percent of terminations are related to underperformance.The bill would require Amazon and other warehouse employers to disclose productivity quotas to workers and regulators, and would allow workers to sue to eliminate quotas that prevent them from taking breaks and following safety protocols.While it is unclear how big an impact the bill would have on Amazon’s operations, limiting the company’s hourly productivity quotas would probably affect its costs more than its ability to continue next-day and same-day delivery.“I think it’s all about money, not about what the system is set up to handle,” said Marc Wulfraat, president of the supply-chain and logistics consulting firm MWPVL International. “If you said to me, ‘Bring the rate down from 350 to 300 per hour,’ I’d say, ‘OK, we need to add more people to the operation — maybe we need 120 people instead of 100.’”A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was nearly double that of the rest of the warehousing industry last year.“They would say, ‘Always pivot, never twist,’ all this stuff you’re supposed to do,” said Nathan Morin, who worked in an Amazon warehouse in California for more than three years packing and picking items before leaving in December. “But it’s oftentimes impossible to follow the proper body movements while also making rate.”The company has vowed to improve worker safety and said it had spent more than $300 million this year on new safety measures.Amazon is under growing pressure from unions and other groups over its labor practices. A regional office of the National Labor Relations Board has indicated that it is likely to overturn a failed union election at an Amazon warehouse in Alabama on the grounds that the company improperly interfered with the voting.The objections to the election were brought by the Retail, Wholesale and Department Store Union, which spearheaded the organizing campaign.The International Brotherhood of Teamsters, which backed the California bill and whose local officials have helped to derail a tax abatement for Amazon in Indiana and approval for an Amazon facility in Colorado, has committed to providing “all resources necessary” to unionize Amazon workers.“This is a historic victory for workers at Amazon and other major warehouse companies,” Ron Herrera, a Teamsters official who is president of the Los Angeles County Federation of Labor, said in a statement. “These workers have been on the front lines throughout the pandemic, while suffering debilitating injuries from unsafe quotas.” More

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    Democrats and Lobbyists to Battle Over Tax Increases for Biden’s Social Policy Bill

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    Congressional committees this week begin drafting tax increases on the wealthy and corporations to pay for a $3.5 trillion social policy bill, but the targets are putting up a fight.WASHINGTON — Congressional Democrats always knew their battle plan for raising taxes on corporations, large inheritances and the superwealthy would not survive initial contact with the enemy.They just didn’t realize that enemy would be North Dakota-nice Heidi Heitkamp.The Democratic former senator has emerged as the smiling face of a well-financed effort to defeat a proposed tax increase that is crucial to funding the $3.5 trillion social spending bill at the heart of President Biden’s agenda. Her effort is indicative of the difficult slog ahead as the business lobby mobilizes to chip away at Democrats’ tax-raising ambitions, which some lawmakers say will have to be scaled back to maintain party unity, an assessment the White House has disputed.On Thursday, the House Ways and Means Committee is set to begin formally drafting its voluminous piece of the 10-year measure to combat climate change and reweave the nation’s social safety net, with paid family and medical leave, expanded public education, new Medicare benefits and more. The committee’s purview includes much of that social policy, but also the tax increases needed to pay for it.Democrats had hoped that the tax side would be more than notations on an accounting ledger. They regard it as an opportunity to fundamentally change policies to address growing income inequality, reduce incentives for corporations to move jobs and profits overseas, and slow the amassing of huge fortunes that pass through generations untaxed.But corporate interests, led by the U.S. Chamber of Commerce, the Business Roundtable and Americans for Tax Reform, have mobilized a multifaceted lobbying and advertising blitz to stop the tax increases — or at least mitigate them.“They’re lobbying to try to escape their obligation to pay the taxes they owe, leaving working families to pay a larger share of the burden,” Mr. Biden said at the White House on Friday. “Somebody has got to pay.”The $3.5 trillion social spending bill would help fund expanded public education.Clara Mokri for The New York TimesMembers of the Senate Finance Committee will meet this week to go over more than two dozen tax proposals. Some of them are well on their way toward inclusion in the measure, which under a complex budget process known as reconciliation would be able to pass Congress without a single Republican vote.Lobbyists expect the top individual income tax rate to return to 39.6 percent from the 37 percent rate that President Donald J. Trump’s tax cuts created in 2017. The corporate income tax rate will also rise from the 21 percent in the Trump tax cuts, though not to the 35 percent rate of the Obama years. Lawmakers say a 25 percent rate is more likely.Many Democrats are determined to tax the wealth of America’s fabulously rich, much of which goes untaxed for decades before being passed along to heirs. Currently, for instance, when large estates are passed on at death, heirs are allowed to value the stocks, real estate and other assets at the price they would fetch at the time of the original owner’s death. They pay taxes only on the gain in value from that point once the assets are sold. If the assets are not sold, they are not taxed at all..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-3btd0c{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:1rem;line-height:1.375rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-3btd0c{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-3btd0c strong{font-weight:600;}.css-3btd0c em{font-style:italic;}.css-1kpebx{margin:0 auto;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:700;font-size:1.375rem;line-height:1.625rem;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-1kpebx{font-size:1.6875rem;line-height:1.875rem;}}@media (min-width:740px){.css-1kpebx{font-size:1.25rem;line-height:1.4375rem;}}.css-1gtxqqv{margin-bottom:0;}.css-19zsuqr{display:block;margin-bottom:0.9375rem;}.css-12vbvwq{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-12vbvwq{padding:20px;width:100%;}}.css-12vbvwq:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-12vbvwq{border:none;padding:10px 0 0;border-top:2px solid #121212;}.css-12vbvwq[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-12vbvwq[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-12vbvwq[data-truncated] .css-5gimkt:after{content:’See more’;}.css-12vbvwq[data-truncated] .css-6mllg9{opacity:1;}.css-qjk116{margin:0 auto;overflow:hidden;}.css-qjk116 strong{font-weight:700;}.css-qjk116 em{font-style:italic;}.css-qjk116 a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;text-underline-offset:1px;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:visited{color:#326891;-webkit-text-decoration-color:#326891;text-decoration-color:#326891;}.css-qjk116 a:hover{-webkit-text-decoration:none;text-decoration:none;}Mr. Biden wants to have heirs to large fortunes pay taxes when the original owner dies. Those taxes would be levied on inherited assets based on the gain in value from when those assets were initially purchased.Ms. Heitkamp, who said she was recruited to the opposition campaign by the Democratic former senator-turned-superlobbyist John Breaux, is adamant that taxation upon death, regardless of wealth, is deadly politics. Ms. Heitkamp said she was finding a receptive audience among potential swing voters in rural areas, especially owners of family farms, even though Democrats say such voters would never be affected by the changes under consideration. Lobbyists already expect this piece of the estate tax changes to wash out in the lobbying deluge.“This is very consistent with my concern about revitalizing the Democratic Party in rural America,” Ms. Heitkamp said. “You may want to do this,” she said she had counseled her former colleagues, “but understand there will be risk, and risk is the entire agenda.”Even more significantly, the Finance Committee is looking at taxing the accumulated wealth of billionaires, regardless of whether it is sold. Extremely wealthy Americans like the Amazon founder Jeff Bezos would have a decade to pay a one-time tax on the value of assets like stocks that have been accruing value for years. They would then pay taxes each year on the annual gain in value of their stocks, bonds and other assets, much like many Americans pay property taxes on the annually assessed value of their homes.Another key component is the international tax code. The Biden administration has called for doubling the tax that companies pay on foreign earnings to 21 percent, so the United States complies with an international tax deal that the administration is brokering, which would usher in a global corporate minimum tax of at least 15 percent.The Organization for Economic Cooperation and Development announced in July that more than 130 countries had agreed to the new framework, which aims to eliminate tax havens and end a race to the bottom on corporate tax rates. Officials have been rushing to confirm the details before the Group of 20 leaders meet in Rome in October.Extremely wealthy Americans like the Amazon founder Jeff Bezos would have a decade to pay a one-time tax on the value of assets such as stocks that have been accruing value for years.Mandel Ngan/Agence France-Presse — Getty ImagesBut countries such as France are concerned that the United States will not be able to live up to its end of the bargain if Congress cannot raise the minimum tax.The moment of truth is approaching. Representative Lloyd Doggett of Texas, a senior Democrat on the Ways and Means Committee, and 40 other members of his party on Tuesday backed the White House. Yet some Democratic lawmakers have expressed concern that U.S. companies would still be at a competitive disadvantage if other countries enacted minimum tax rates as low as 15 percent and the United States had a higher rate.Treasury Secretary Janet L. Yellen addressed those concerns in a Twitter post on Friday.“As Congress begins to finalize their legislation, I urge them to remember the historic opportunity that we have to end the race to the bottom and finally have a foreign policy and a tax code that works for the middle class,” she wrote.Republicans are already on the attack. After the disappointing monthly jobs report on Friday, Representative Kevin Brady of Texas, the ranking Republican on the Ways and Means Committee, said the slowing economy would “only get worse if the Democrats’ trillions in tax hikes and welfare spending is rammed through Congress in September.”Senator Ron Wyden of Oregon, the chairman of the Finance Committee, said he understood that business groups and Republicans would howl that the tax increases would kill jobs, stifle the economy and hurt ordinary, struggling Americans.“The big lobbies are going to attack you under any circumstance,” he said, “and half the time they’re just making it up.”But he insisted that the politics had changed. Americans who struggled during the coronavirus pandemic can see how rich others have become. New revelations from a trove of tax records leaked to ProPublica showed that household names like Mr. Bezos and Elon Musk paid virtually no federal taxes.Other lawmakers are not so sure, especially in the House, where midterm campaigns loom and a razor-thin Democratic majority is clearly at risk. Among the most vulnerable members are those from conservative-leaning districts where tax increases are particularly unpopular.“No one wants to throw the House away,” said Representative Donald S. Beyer Jr., Democrat of Virginia, a member of the Ways and Means Committee. “We’re all mindful of our frontline candidates.”Estate and capital gains tax changes proposed by the president and embraced by Mr. Wyden are aimed at the superrich, but the campaign against them frames the issue around family farms and small businesses. Ms. Heitkamp rebuffed Mr. Wyden’s assurance that he could structure the changes to affect only the very wealthy and the gain in value of their assets without taxation.“People don’t believe that, because they believe that rich people always have the lane to get into Congress,” she said. “I get that you’re trying to deal with a huge disparity in wealth in this country, and I get that you are concerned about that for the future of America. I share the concern. Taxing unrealized capital gains is not the path forward.”Some lawmakers and tax lobbyists are already circulating a document handicapping which measures are likely to survive — and which are not. A corporate tax rate increase at home and abroad is likely to pass, though it may not be as high as some Democrats would like. So is a higher top income tax rate on individuals. Capital gains tax rates are expected to rise somewhat, though not to the ordinary income tax rate of 39.6 percent for the very rich, as Mr. Biden has proposed.A measure to increase tax law enforcement, which fell out of a separate bipartisan infrastructure bill, is likely to reappear in the reconciliation bill.But lobbyists expect the proposal to make heirs pay immediate taxes on inheritances based on asset purchase prices to fall out of the plan.They also see a straight, 15 percent minimum tax on overseas income as imperiled. Even some measures that looked like slam dunks may still be rejected because of the back-room lobbying campaign that has just begun.“They’re lobbying to try to escape their obligation to pay the taxes they owe, leaving working families to pay a larger share of the burden,” Mr. Biden said of corporate interests on Friday at the White House.Stefani Reynolds for The New York TimesThat includes closing the so-called carried interest loophole, which allows richly compensated private equity and hedge fund managers to claim the fees they charge clients as investment income, subject to low capital gains tax rates, not income tax rates. Every president since Barack Obama has denounced the provision and demanded its closure, only to lose to influential lobbyists.The U.S. Chamber of Commerce on Tuesday started a campaign to stop the loophole from being closed, saying doing so “would reduce investment, lead to widespread job losses and decrease tax revenues.” Mr. Wyden called the assertions “insulting to the intelligence of every American.”Administration officials insisted that taxing the rich and corporations would help sell the bill.“Should we let millions of children grow up in poverty in order to protect offshore tax loopholes?” Kate Bedingfield, the White House communications director, wrote to House Democrats in a memo on Tuesday. “Should we let middle-class families bear crushing costs for child care and elder care rather than asking the very richest among us to pay their fair share? Those are the questions before us.” More

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    California Bill Could Alter Amazon Labor Practices

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    The bill would rein in production quotas at warehouses that critics say are excessive and force workers to forgo bathroom breaks.Among the pandemic’s biggest economic winners is Amazon, which nearly doubled its annual profit last year to $21 billion and is on pace to far exceed that total this year.The profits flowed from the millions of Americans who value the convenience of quick home delivery, but critics complain that the arrangement comes at a large cost to workers, whom they say the company pushes to physical extremes.That labor model could begin to change under a California bill that would require warehouse employers like Amazon to disclose productivity quotas for workers, whose progress they often track using algorithms. “The supervisory function is being taken over by computers,” said Assemblywoman Lorena Gonzalez, the bill’s author. “But they’re not taking into account the human factor.”The bill, which the Assembly passed in May and the State Senate is expected to vote on this week, would prohibit any quota that prevents workers from taking state-mandated breaks or using the bathroom when needed, or that keeps employers from complying with health and safety laws.The legislation has drawn intense opposition from business groups, which argue that it would lead to an explosion of costly litigation and that it punishes a whole industry for the perceived excesses of a single employer.“They’re going after one company, but at the same time they’re pulling everyone else in the supply chain under this umbrella,” said Rachel Michelin, the president of the California Retailers Association, on whose board Amazon sits.California plays an outsize role in the e-commerce and distribution industry, both because of its huge economy and status as a tech hub and because it is home to the ports through which much of Amazon’s imported inventory arrives. The Inland Empire region, east of Los Angeles, has one of the highest concentrations of Amazon fulfillment centers in the country.Kelly Nantel, an Amazon spokeswoman, declined to comment on the bill but said in a statement that “performance targets are determined based on actual employee performance over a period of time” and that they take into account the employee’s experience as well as health and safety considerations.“Terminations for performance issues are rare — less than 1 percent,” Ms. Nantel added.The company faces growing scrutiny of its treatment of workers, including an expected ruling from a regional director of the National Labor Relations Board that it unlawfully interfered in a union vote at an Alabama warehouse. The finding could prompt a new election there, though Amazon has said it would appeal to preserve the original vote, in which it prevailed.In June, the International Brotherhood of Teamsters passed a resolution committing the union to provide “all resources necessary” to organize Amazon workers, partly by pressuring the company through political channels. Teamsters officials have taken part in successful efforts to deny Amazon a tax abatement in Indiana and approval for a facility in Colorado and are backers of the California legislation.Both sides appear to regard the fight over Amazon’s quotas as having high stakes. “We know that the future of work is falling into this algorithm, A.I. kind of aspect,” said Ms. Gonzalez, the bill’s author. “If we don’t intervene now, other companies will be the next stage.”Ms. Michelin, the retail association president, emphasized that the data was “proprietary information” and said the bill’s proponents “want that data because it helps unionize distribution centers.”A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was almost double that of the rest of the warehousing industry in 2020 and more than twice that of warehouses at Walmart, a top competitor.Asked about the findings, Ms. Nantel, the Amazon spokeswoman, did not directly address them but said that the company recently entered into a partnership with a nonprofit safety advocacy group to develop ways of preventing musculoskeletal injuries. She also said that Amazon had invested over $300 million this year in safety measures, like redesigning workstations.Amazon employees have frequently complained that supervisors push them to work at speeds that wear them down physically.“There were a lot of grandmothers,” one worker said in a study underwritten by the Los Angeles County Federation of Labor, another backer of the California bill. Managers would “come to these older women, and say, ‘Hey, I need you to speed up,’ and then you could see in her face she almost wants to cry. She’s like, ‘This is the fastest my body can literally go.’”Yesenia Barrera, a former Amazon worker in California, said that managers told her she needed to pull 200 items an hour from a conveyor belt, unbox them and scan them. She said she was usually able to reach this target only by minimizing her bathroom use.“That would be me ignoring using restroom-type things to be able to make it,” Ms. Barrera said in an interview for this article. “When the bell would ring for a break, I felt like I had to do a few more items before I took off.”An employee sorted items at a Staten Island warehouse in May. Workers have complained that supervisors push them to work at speeds that wear them down.Chang W. Lee/The New York TimesEdward Flores, faculty director of the Community and Labor Center at the University of California, Merced, says repetitive strain injuries have been a particular problem in the warehousing industry as companies have automated their operations.“You’re responding to the speed at which a machine is moving,” said Dr. Flores, who has studied injuries in the industry. “The greater reliance on robotics, the higher incidence of repetitive motions and thus repetitive injuries.” Amazon has been a leader in adopting warehouse robotics.Ms. Gonzalez said that when she met with Amazon officials after introducing a similar bill last year, they denied using quotas, saying that they relied instead on goals and that workers were not punished for failing to meet them.During a meeting a few days before the Assembly passed this year’s bill, she said, Amazon officials acknowledged that they could do more to promote the health and safety of their workers but did not offer specific proposals beyond coaching employees on how to be more productive.At one point during the more recent meeting, Ms. Gonzalez recalled, an Amazon official raised concerns that some employees would abuse more generous allotments of time for using the bathroom before another official weighed in to de-emphasize the point.“Someone else tried to walk it back,” she said. “It’s often said quietly. It’s not the first time I’ve heard it.”The bill’s path has always appeared rockier in the State Senate, where amendments have weakened it. The bill no longer directs the state’s occupational safety and health agency to develop a rule preventing warehouse injuries that result from overwork or other physical stress.Instead, it gives the state labor commissioner’s office access to data about quotas and injuries so it can step up enforcement. Workers would also be able to sue employers to eliminate overly strict quotas.Ms. Gonzalez said she felt confident about the Senate vote, which must come by the close of the legislative session on Friday, but business groups are still working hard to derail it.Ms. Michelin, the retailer group president, said that the Senate committees’ changes had made the bill more palatable and that her members might support a measure that gave more resources to regulators to enforce health and safety rules. But she said they had serious concerns about the way the bill empowers workers to sue their employers.As long as that provision remains in the bill, she said, “we will never support it.” More