Andy Friedman: Biden Tax Plan Will Get a “Major Haircut”

President Biden’s sweeping package of tax increases will get passed this year, according to Andy Friedman. But it will get a “major haircut,” he said.

Friedman runs the Washington Update. He spoke via a webinar that was sponsored by Prudential Annuities. It was offered in connection with Bob Veres’ Insider’s Forum conference. It is not too late to sign up for that event, which is in Nashville, TN from October 6 to 8.

The package is assured of passing because, according to Congressional rules, it requires only a majority vote. That means it needs only Democratic support.

But the haircut will come because Joe Manchin (D-WV) will demand that some of the increases be pared back to get his vote.

It needs to pass this year, Friedman said, because nobody wants to raise taxes in an election year. But it may be not until Thanksgiving.

Let’s review the legislation and the “haircuts” that Freidman expects.