Democrats getting close on a budget framework. House Speaker Nancy Pelosi says Democrats are close to an agreement on President Biden’s Build Back Better social spending bill, though they still are squabbling over tax provisions. President Biden met with Senate Majority Leader Chuck Schumer and Sen. Joe Manchin yesterday, seeking to finalize a framework. Negotiations continued through the weekend over several issues. Pelosi predicts the House could vote on a bipartisan infrastructure bill and a budget outline by the end of the week. Lawmakers need to pass the public works bill before transportation funding runs out on Oct 31.  

 Is a billionaire tax really in the works? After Sen. Kyrsten Sinema nixed corporate and individual tax rate increases to offset costs of the spending bill, lawmakers now are awaiting Senate Finance Committee Chairman Ron Wyden’s plan to tax the wealthiest 700 Americans with at least $1 billion in assets or more than $100 million in income three years in a row. The Washington Post reports billionaires would be taxed annually on the increased value of their publicly-traded assets (like stocks), whether or not the securities are sold. The plan would establish a separate method of taxing less tradable assets like privately-held businesses and real estate.

Treasury: Federal budget deficit hit  $2.8 trillion in fiscal year 2021. Treasury reported the total on Friday, which aligns with the Congressional Budget Office estimate two weeks ago. The deficit was $360 billion lower than the prior year due to an improved economy, American Rescue Plan stimulus, and wide use of the COVID-19 vaccine. Spending grew by 4.1 percent to $6.82 trillion, and tax receipts rose to $4 trillion, about $465 billion more than the White House first estimated.

Tune in Wednesday: US Energy Tax Policy and Climate Change. TPC and the Brookings Institution host experts to examine US energy tax policy. Catherine Wolfram, deputy assistant Treasury secretary for climate and energy economics, will  explain the Biden administration’s climate strategy. Then an expert panel of Gilbert Metcalf, Carole Nakhle, Sanjay Patnaik, and Kurt Van Dender, moderated by TPC’s Thornton Matheson, will discuss energy tax policy. Learn more and register here. 

Bill Hoagland will be Thursday’s guest on The Prescription. Hoagland, senior vice president at the Bipartisan Policy Center and longtime Senate fiscal policy expert, will discuss the latest negotiations over Biden's Build Back Better agenda. To tune in on Thursday at Noon, register here.

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].