Kyrsten Sinema, Joe Manchin Back Corporate Minimum Tax on $1B Companies

Democratic Senators Kyrsten Sinema and Joe Manchin have come out in support of their party's plans for a minimum tax on corporate profits in order to raise money for sweeping social spending and climate spending packages.

The pair, who both fought against President Joe Biden's proposed $3.5 trillion social spending bill, have now given their backing to the plan unveiled by Senators Elizabeth Warren and Senate Finance Committee Chairman Ron Wyden, and Angus King, an independent who caucuses with the Democrats.

According to a joint statement from the senators, the Corporate Profits Minimum Tax would create a 15 percent minimum tax on the profits of major companies that report over $1 billion in profits. Around 200 companies would be subject to the tax under the legislation, which is estimated to raise hundreds of billions in revenue over 10 years.

"This proposal represents a commonsense step toward ensuring that highly profitable corporations—which sometimes can avoid the current corporate tax rate—pay a reasonable minimum corporate tax on their profits, just as everyday Arizonans and Arizona small businesses do," Sinema said in a statement.

"I look forward to continuing discussions with the White House and colleagues to expand economic opportunities, retain America's economic competitiveness, and help Arizona families get ahead."

Speaking on stage at the Economic Club of Washington on Tuesday, Manchin said that he also supported a minimum 15 percent corporate tax rate, but admitted that he hasn't "seen the text on it," Washington Post reporter Tony Romm tweeted.

Announcing the proposals, Warren said: "Giant corporations have been exploiting tax loopholes for too long, and it's about time they pay their fair share to help run this country, just like everyone else. The Corporate Profits Minimum Tax would end corporate double dealing and ensure companies pay something in taxes when they report billions in profits to their shareholders."

The backing from Sinema and Manchin will be seen as a relief for leading Democrats who have been spending several days negotiating an agreement regarding the $3.5 trillion price tag amid their opposition. The Democrats will need the vote of every one of their senators to pass the bill with a majority, in order to bypass a Republican filibuster.

On Sunday, Biden met with Manchin and House Majority Leader Chuck Schumer for breakfast at the president's home in Wilmington, Delaware, for what the White House described as a "productive discussion" about the Build Back Better Agenda.

House Speaker Nancy Pelosi told CNN's State of the Union on Sunday that the Democrats are "pretty much there now" with regards to ironing out the remaining details of the bill.

"We have 90 percent of the bill agreed to and written. We just have some of the last decisions to be made," Pelosi said.

The Democrats are hoping to have the bill signed before Biden leaves for the U.N. climate summit in Glasgow, Scotland next week.

Pelosi also said she wants the $1.2 trillion bipartisan infrastructure bill, which forms part of the larger reconciliation package, to be signed by October 31, when the 30-day reauthorization of federal highway programs expires.

Manchin has been contacted for further comment.

Krysten Sinema joe manchin tax
Kyrsten Sinema and Joe Manchin have come out in support of their party's plans for a minimum tax on corporate profits. Win McNamee R ROD LAMKEY/POOL/AFP/Getty Images