By David Lawder

WASHINGTON (Reuters] – Tax advisors to corporate clients warn against celebrating the apparent end of U.S. President Joe Biden’s $1.75 trillion climate plan and social spending program. These plans could be revived, they claim with a similar cost tag and tax hikes.

Biden’s fellow Democrat U.S. Democrat Joe Manchin will negotiate any changes to the new bill. Senator Joe Manchin, are likely to focus more on the spending side than on revenue-raising measures, said Ryan Abraham, a principal with Ernst & Young’s Washington Council advisory practice.

Revenue measures in the bill include increased taxes for companies and wealthiest households.

Manchin, a moderate Democrat, shocked the White House by stating that he wouldn’t support the spending bill in an interview for Fox News Sunday. Moderate Democrats expressed concerns over the spending plan’s impact on inflation, as well as about measures like the expansion of child tax credits.

Manchin is the representative of West Virginia. West Virginia is one of the most poor states in America. He has repeatedly stated that he supports raising taxes on the rich and corporations, and reverse some tax cuts that Trump’s administration made to 2017.

I’m not sure if the tax side will change beyond the child tax credit or some discrete changes Manchin may need. Abraham stated that Abraham doesn’t believe this is his main concern.

Abraham stated that the revenue measures included in Biden’s “Build Back Better” bill include a 15% minimum corporate tax, an additional 15% minimum corporate tax, and a surtax for individual income over $10 million. This is to make sure any new negotiations cover these costs.

Some tax benefits, including the U.S. Union-made Electric Vehicles Deduction, could be removed, but green energy goods manufacturers and other industries might not be subject to the book income tax.

MINIMUM TAX FOR GLOBAL COMPANY

Biden stated on Tuesday, two days after Manchin had publicly rejected the latest version of the bill, that they were going to “get something done” regarding the legislation.

The talks were not discussed Wednesday by a Manchin aide.

Manal Corwin (a former U.S. Treasury official) is the current head of KPMG’s Washington National Tax Practice. The motivation to accomplish something is strong even though it may need to be scaled back.

Biden’s White House may be able to convince Manchin to vote for the “Build back Better” bill. However, the White House will need to prevail over Democratic Senator Kyrsten Silena in order to have it passed by the 100-seat Senate which is tightly controlled by Democrats. Sinema, along with all 50 Republican senators, have rejected higher corporate taxes.

Corwin indicated that current tax provisions which were crucial for the 136-country agreement on a 15% global corporate tax minimum are less controversial. They are expected to be preserved in a revised version.

Corwin stated that “from a global perspective tax, it really is about whether or not they get a deal” for the package. He also said Manchin’s announcement this weekend was “raising alarm bells in some countries” about U.S. Treasury Secretary Janet Yellen’s ability to fulfill her promises.

On Wednesday, a Treasury spokesperson stated that it was certain the department could fulfill its commitment to the global 15% corporate minimum tax implementation next year. The rules will be in force by 2023.