Biden's tax hike plan thwarted

Biden's plan to raise the corporate tax rate from 21% to 28% has hit roadblocks early in the party, with moderate Democratic Senator Joe Manchin saying he wants 25%. Another scenario -- a substantial increase in capital gains taxes, especially when the wealthy inherit assets -- could also be adjusted more leniently. There are signs of concerns among Democratic lawmakers that could weaken the plan by Congress.

Negotiations will likely take months as lawmakers have to determine how new spending plans will align with tax proposals. The bipartisan talks on infrastructure plans have not progressed, meaning Biden's $4 trillion in spending and the tax proposal could turn out only supported by Democrats.

With the U.S. still unemployed by more than 8 million people than before the coronavirus, some Democrats are heeding the criticism that higher taxes could hurt economic growth. Democrats in the House of Representatives are still well-remembered that Republicans who successfully thwarted the Obama administration's spending and tax plans in the 2010 midterm elections, are the moderates who are the key for Democrats' to keep their majority position in next year's elections.