Democrats must also resolve their differences over how to finance the plan, after promising moderates in their ranks that it would be fully paid for. Moderates have balked at a proposal to lower the cost of prescription medicines by allowing Medicare to negotiate with drug companies on prices, prompting negotiators to look at narrower versions of that approach.
The details of the billionaires’ tax, an entirely new approach to taxing wealth, were also still being hammered out, although top Democrats said it could be released in the next couple of days. And negotiators were still working out how to meet a demand, primarily from New York and New Jersey lawmakers, to increase the amount of state and local taxes that people can deduct from their federal tax bill, which would benefit those living in states with high taxes.
The proposal, which could cost hundreds of billions of dollars, is a priority for Mr. Schumer, as well as moderate Democrats whose votes are needed to push through the reconciliation bill, including Representative Josh Gottheimer of New Jersey and Tom Suozzi of New York.
Because Senator Kyrsten Sinema of Arizona, another centrist holdout on the plan, has rejected increases to the corporate and individual tax rates, negotiators were discussing an array of alternatives, including the wealth tax, a global corporate minimum tax, a tax on what corporations report to shareholders and strengthening the I.R.S.’s ability to collect unpaid taxes.
“I think we will find a way that we can come together and have all 50 Democrats on board,” said Senator Elizabeth Warren of Massachusetts, who is heavily involved in the finance discussion. “We’re all trying to head in the same direction.”
Republicans, who adamantly oppose the domestic policy plan, railed against the new tax proposals under discussion on Monday.