Senate Democrats, pushing past skepticals, unveiled Wednesday a billionaires’ tax plan. This entirely new tax entry was added to the tax code to pay for President Joe Biden’s comprehensive domestic policy package. It also helps bring his party closer towards an overall agreement.

Proposed tax will hit those who have more than $1B in assets, or more than $100M a year. It could also help to stabilize the large social services and climate plan that Biden has been working on before he leaves this week to attend global summits.

Biden would need to attract Kyrsten Sinema, a key Democrat from Arizona, to convince her to support his earlier proposal to repeal Trump-era tax cuts on corporations and wealthy in order to generate additional revenue.

Biden met Sinema late Tuesday evening at the White House with another Democratic holdout Sen. Joe Manchin from West Virginia.

No senator would like to say “Gee, it’s just okay for billionaires to have little to no tax for years on end,” said Democratic Senator Ron Wyden, Oregon’s chairman of the Senate Finance Committee.

As they wrap up negotiations, Biden and his party will be focusing on $1.75 trillion for health, child and climate care programs. This is a reduction of the $3.5 trillion plan.

Together, the tax on billionaires (new tax) and the 15% minimum corporate tax (corporate tax) are meant to meet Biden’s demand that the rich and large businesses pay more. The new tax on billionaires and the 15% corporate minimum tax are in line with Biden’s pledge that no additional taxes will be levied against those making less than $450,000 per annum. Biden says all of the spending on the nation’s future will be completely paid and not added onto it.

The new tax plans have been praised by Manchin as being acceptable and may win Sinema’s support in the split Senate at 50-50. However, other Democrats are critical of the tax on billionaires.

Representative Richard Neal (D-Mass.), the chair of the Ways and Means Committee said that he had told Wyden that the tax on billionaires may prove more challenging than the path his panel chose to simply raise rates for corporations and wealthy.

Wyden’s new plan would see the billionaires tax hit less than 800 Americans under Wyden’s proposal, according to an anonymous source who was unable to speak publicly. It will begin in the 2022 tax years.

The tax would apply to those who have more assets than $1B or three years worth of income exceeding $100M.

The tax on non-tradeable assets like real estate would also be similar to the billionaires tax. But the tax wouldn’t be assessed until that asset was sold. However, interest would need to be paid.

The billionaires would pay the same tax as the capital gains rate (currently 23.8%). Democrats claim it could generate $200 billion of revenue, which could be used to fund Biden’s 10-year package.

Senator Elizabeth Warren (D-Mass.), who supported Wyden’s plan and campaigned for the presidency with a wealth tax in Massachusetts, said, “I have been talking about it for years.” This has made billionaires cry.

Republicans have dismissed the billionaire tax as “harebrained” while others suggested that it could be subject to legal challenges.

Key Democrats raised concern about billionaires’ taxes as well. They suggested that the best way to reverse 2017’s tax cuts and increase top rates by simply increasing the rate was easier.

The House bill, which was approved by Neal’s committee, would see the highest individual income tax rate rise to 37% from 39.6% for those who earn more than $400,000 per year. This is $450,000 for married couples. The rate for corporations would go up from 21% – 26.5%. Additionally, the bill proposes a surtax of 3% on Americans who earn more than $5 million annually.

The senators are able to deliver a double punch. Sinema has rejected the House’s tax plan and Manchin is blocking new program spending. This throws Biden’s entire plan in flux.

That was also forcing difficult reductions, if not the outright elimination, of policy priorities — from paid family leave to child care to dental, vision and hearing aid benefits for seniors.

Climate change strategies that were once quite powerful are also losing their punch. Instead of focusing on punitive actions against polluters, which raised objections from Manchin coal-state, it is shifting to rewarding clean energy incentives.

Manchin’s resistance may scuttle one other tax idea — a plan to give the IRS more resources to go after tax scofflaws. He told Biden that he said during the weekend meeting that the plan was “messed-up” and would permit the government to track bank accounts.

All told, Biden’s package remains a substantial undertaking — and could still top $2 trillion in perhaps the largest effort of its kind from Congress in decades. It’s still far smaller than what the president and his party originally envisioned.

According to another source, Nancy Pelosi, House Speaker, told Congressmen in closed session Tuesday that they are on the brink of something “major, transformative and historic” than any other attempt at Congress.

The deal was supported by other leading Democrats.

Following a meeting with Biden at White House, Rep. Joyce Beatty of Ohio, chair of the Congressional Black Caucus said, “We know we’re close.” And let me clarify: We have left footprints on the White House.

Jen Psaki, White House press secretary said that Biden still desired to be able to offer a deal to demonstrate to foreign leaders how the U.S. Government is performing on major issues such as climate change. However, she admitted that it might not occur and had to force him to work on the package at a distance.

She cautioned against failure rather than compromise.

She stated that “the alternative to the one being negotiated” is not the original deal. It is nothing.”

Democrats hope to come up with an agreement before the week ends, which would allow for a House vote in favor of a $1 trillion bipartisan infrastructure bill. This will be done prior to routine transportation funding expiring Sunday. After progressive lawmakers withheld their support, the separate road-and-bridges bill was unable to be passed until discussions on the larger Biden bill had been completed.