WASHINGTON (AP) — Senate Democrats have agreed to eleventh-hour changes to their marquee economic legislation, they announced late Thursday, clearing the major impediment to pushing one of President Joe Biden’s paramount election-year priorities through the chamber in coming days.
Sen. Kyrsten Sinema, D-Ariz., a centrist seen as the pivotal vote in the 50-50 chamber, said in a statement that she had agreed to revamping some of the measure’s tax and energy provisions and was ready to “move forward” on the bill.
Kyrsten Sinema agrees to compromise on inflation bill
Senate Majority Leader Chuck Schumer, D-N.Y., said he believed his party’s energy, environment, health and tax compromise “will receive the support of the entire” Democratic membership of the chamber. His party needs unanimity and Vice President Kamala Harris’ tie-breaking vote to move the measure through the Senate over certain solid opposition from Republicans, who say the plan’s tax boosts and spending would worsen inflation and damage the economy.
The announcement came as a surprise, with some expecting talks between Schumer and the mercurial Sinema to drag on for days longer without guarantee of success. Schumer has said he wants the Senate to begin voting on the legislation Saturday, after which it would begin its summer recess. Passage by the House, which Democrats control narrowly, could come when that chamber returns briefly to Washington next week.
Democrats revealed few details of their compromise, and other hurdles remained. Still, final congressional approval would complete an astounding resurrection of Biden’s wide-ranging domestic goals, though in more modest form.
Sinema agrees to ‘move forward’ with social spending and tax bill after Dems make changes
Democratic infighting had embarrassed Biden and forced him to pare down a far larger and more ambitious $3.5 trillion, 10-year version, and then a $2 trillion alternative, leaving the effort all but dead. Instead, Schumer and Sen. Joe Manchin, the conservative maverick Democrat from West Virginia who derailed Biden’s earlier efforts, unexpectedly negotiated the slimmer package two weeks ago.
Its approval would let Democrats appeal to voters by boasting they are moving to reduce inflation — though analysts say that impact would be minor — address climate change and increase U.S. energy security.
“Tonight, we’ve taken another critical step toward reducing inflation and the cost of living for America’s families,” Biden said in a statement.
Sinema said Democrats had agreed to remove a provision raising taxes on “carried interest,” or profits that go to executives of private equity firms. That’s been a proposal she has long opposed, though it is a favorite of Manchin and many progressives.
The carried interest provision was estimated to produce $13 billion for the government over the coming decade, a small portion of the measure’s $739 billion in total revenue.
It will be replaced by a new excise tax on stock buybacks which will bring in more revenue than that, said one Democrat familiar with the agreement. The official, who was not authorized to discuss the deal publicly and spoke on condition of anonymity, provided no other detail.
Sinema said she had also agreed to unspecified provisions to “protect advanced manufacturing and boost our clean energy economy.”
She noted that Senate parliamentarian Elizabeth MacDonough is still reviewing the measure to make sure no provisions must be removed for violating the chamber’s procedures. “Subject to the parliamentarian’s review, I’ll move forward,” Sinema said.
The measure must adhere to those rules for Democrats to use procedures that will prevent Republicans from mounting filibusters, delays that require 60 votes to halt.
Schumer said the measure retained the bill’s language on prescription drug pricing, climate change, “closing tax loopholes exploited by big corporations and the wealthy” and reducing federal deficits.
He said the bill “addressed a number of important issues” that Democratic senators raised during talks. He said the final measure “will reflect this work and put us one step closer to enacting this historic legislation into law.”
Left unclear was whether changes had been made to the bill’s 15% minimum corporate tax, a provision Sinema has been interested in revising. It would raise an estimated $313 billion, making it the legislation’s largest revenue raiser.
That levy, which would apply to around 150 corporations with income exceeding $1 billion, has been strongly opposed by business, including by groups from Sinema’s Arizona.
The final measure was expected to include assistance that Sinema and other Western senators have been trying to add to help their states cope with epic drought and wildfires that have become commonplace. Those lawmakers have been seeking around $5 billion but it was unclear what the final language would do, said a Democrat following the bargaining who would describe the effort only on condition of anonymity.
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The measure will also have to withstand a “vote-a-rama,” a torrent of nonstop amendments expected to last well into the weekend, if not beyond. Republicans want to kill as much of the bill as possible, either with the parliamentarian’s rulings or amendments.
Even if their amendments lose — as is certain for most — Republicans will consider it mission accomplished if they force Democrats to take risky campaign-season votes on touchy issues like taxes, inflation and immigration.
Democratic amendments are expected as well. Progressive Sen. Bernie Sanders, I-Vt., has said he wants to make its health care provisions stronger.
The overall bill would raise $739 billion in revenue. That would come from tax boosts on high earners and some huge corporations, beefed-up IRS tax collections and curbs on drug prices, which would save money for the government and patients.
It would spend much of that on initiatives helping clean energy, fossil fuels and health care, including helping some people buy private health insurance. That would still leave over $300 billion in the measure for deficit reduction.
© 2022 The Canadian Press. All rights reserved.
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Tax and Spend, Take Your money and spend it on foolish, destructive agendas.
Like giving millions of illegal immigrant $400.00 a month, free transportation and free motel rooms
Seems like the the democrats never give out many details for their spending bills. That way we can’t see all the pork that’s hidden in there. What are they afraid of?
ITS the mantra of “Pass it, to find what’s in it”..
WOW Folks, America as we know it is ******!
That is one thing i always find fubar.. My mom just got a letter from Med-assist, who works with OSU wexner, saying if she doesn’t get certain things done (mainly proper ID, which since her UK passport has been expired for over 10 years, and she has no drivers license or the like), She may be on the hook for almost 43k in bills, from two medical visits.
YET ILLEGAL INVADERS, GET TO have it PAID OFF…
Why, of course. Manchin and Sinema just needed a little drama to try and outdo the Jan 6th Instigative Committee hearings.
Actually I hear Schumer and Nancy promised to give her a list of all Paul Pelosi’s stock tips and investments if she came on board. A hundred million in side income is hard to turn down. She won the last coin flip with Manchin to see who would get the payoff to hold back, then submit. Joe got the last one.
The figures you gave sound about right. Selling your soul and your country do not come cheap as many of our elected officials know who have done so long ago. Pathetic new ones keep coming aboard but the Devils work is never done.
One thing I can say about the communist Democrats, they all stick together!! Secondly, those people that wanted Manchin, who voted for Obamacare and the impeachment of Trump, in the Republican party, were fools.
Correction: Republicans supporting Democrats’ agenda ARE fools! Democrats spent the last two-plus decades raiding Social Security and Medicare stockpiles to fund the myriads of “Welfare” services Democrats create on a regular basis. Bidens’ executive decisions caused the inflation we now experience and Bidens’ administration tells us his economic package will save the economy! BS! the article clearly states Democrats expect to raise at least $739 Billion in revenue. as usual, Democrats refuse to explain why they want the money and where the increase in taxes will go. nothing changes within the DNC except their concept of taxation. What once was “Tax and Spend” is now “Spend and Tax” within the Democrats’ demographic of thieves, ne’er-do-wells, and miscreants!
They certainly seem to..
Remember folks, If it walks like a democrat, and talks like a democrat, then it’s a democrat. There is no such thing as a “moderate democrat”..or a “conservative democrat”. Don’t be fooled anymore.
the RAT party is spending and taxing america into non existence god help us.
BECAUSE they know THEY WIll be taken care of, once our economy collapse.
WOW Folks, America is really messed up.
Manchun got a coal pipeline.
I wonder what Sinama got?
( Reminds me of the Nebraska Senator that sold us out on Obamacare. What ever became of him, or did he go the way of Judas too?)
Of ccourse this piece of shoot signed on to democrapic spending bill (pardon the poor grammar). She knows how and where her bread is buttered. She wants to remain SWAMP SCUM and a kind of gubment “worker”.
It probably won’t be longer before the “pork” items start showing up or they might stay hidden until after the elections.
We already know what Manchin’s QUID PRO QUO is….an EXPEDITED NATURAL GAS PIPELINE!! So the $64K question is…… what is Sinema’s QUID PRO QUO???? FOLLOW THE MONEY ALWAYS!
The democrats are going to spend this country into prosperity. Don’t you know that is a core belief every time they assume power? Tax and spend, spend more and tax more, like a revolving door.
How much money is she getting to tax the **** out of American people? The illegals are draining every state but the democrats are taxing Americans to fill their own pockets. Stupidity reins in Congress. But you idiot voters still keep voting them in. Your children and grandchildren will have no future but as slaves to the rich elites in America and the world. But your too stupid to see it.