Democrats swept into power earlier this year promising to raise tax rates on corporations and the wealthy to pay for their ambitious social agenda.
Both have been dramatically pared back, with a suite of their initial ideas on taxes in particular imperiled by resistance from within the party.
To meet the demands of Sen. Kyrsten Sinema (D-Ariz.), the White House agreed to drop a proposed 3 percent tax on taxpayers earning over $5 million, instead agreeing to target the higher tax to those earning more than $10 million, two people familiar with the matter said on the condition of anonymity to discuss the internal negotiations. The move exempted roughly 35,000 of the wealthiest Americans, or approximately .02 percent of the richest 1 percent, from the new levy, according to the most recent Internal Revenue Service data.
