As Democratic leaders worked on a rather ambitious health care, climate and tax package, Senate Minority Leader Mitch McConnell offered a hostage strategy to derail it: Ditch the domestic bill. expansive, the Kentucky Republican said, or he would kill an unrelated measure on microchips, scientific research and improving American competitiveness.
Two weeks ago, however, the legislative dynamics changed: Democratic Sen. Joe Manchin appeared to scuttle his party’s reconciliation package, at which point Senators McConnell and GOP saw no need to hold their hostage . It’s one of the reasons the CHIPS and Science Act cleared the chamber yesterday with relative ease – including a ‘yes’ vote from McConnell.
But then a funny thing happened: the ambitious Democratic package that Republicans assumed was dead suddenly came to life again – didn’t it? after The Democrats got what they wanted on the other bill. NBC News reported on the new Inflation Reduction Act.
In an unexpected breakthrough, Sen. Joe Manchin, DW.Va., reversed his opposition to the rapid passage of a sweeping anti-obstruction bill on Wednesday and announced he would support a package of measures that includes major investments in the pricing of medicines, as well as provisions to combat the climate. currency and taxes on the rich.
The plan, at least for now, is to push the bill through the Senate next week, before members’ August recess.
For those who like to dig into the details, Democratic leaders produced plenty of reading material last night, including the full legislative text, a one-page summary, a review of prescription drug cost measures, a review tax-related measures, and a review of measures related to climate and energy policy.
From a Democratic point of view, there is a lot in this agreement to love. Just 24 hours ago, the speculation was that the reconciliation bill would reduce drug costs and extend Affordable Care Act grants for a few years — and that’s it. It would be a big win, sure, but it would be a narrowly focused win.
The agreement announced late yesterday includes these provisions on health care and goes much further, in part on tax policy – the bill would generate more than $400 billion in revenue through tax reforms, including a tax minimum on corporations by 15% – but also with some of the most important proposals for dealing with the climate crisis in recent memory. An Associated Press report summarizes:
The bill would invest $369 billion over the decade in climate change strategies, including investments in renewable energy generation and tax rebates for consumers to buy new or electric vehicles. second hand. It breaks down to include $60 billion for a clean energy manufacturing tax credit and $30 billion for a wind and solar power production tax credit, seen as ways to stimulate and to support industries that can help reduce the country’s dependence on fossil fuels. For consumers, there are tax breaks like incentives to go green. One is a 10-year consumption tax credit for renewable energy investments in wind and solar. There are tax breaks for the purchase of electric vehicles, including a tax credit of $4,000 for the purchase of used electric vehicles and $7,500 for new vehicles.
Together, these policies would put the United States on track to reduce greenhouse gas emissions by 40 percent by the end of this decade.
The package would also reduce the deficit by $300 billion – a top priority for the conservative West Virginia Democrat who helped broker the terms of the deal.
So if that’s the good news, what’s the bad? There are still questions about whether the legislation can be passed.
We do not yet know, for example, whether there will be any procedural objections raised by the office of the Senate parliamentarian. Also, if even a Senate Democrat gets Covid and can’t speak, there will be no vote.
But perhaps most important is the small contingent of congressional Democrats who are well to the right of Manchin on tax policy. The new deal, for example, tackles the carried interest loophole, which largely benefits investment managers, and which Arizona Sen. Kyrsten Sinema has tried to protect. There are even centrist House Democrats who have expressed tax-related concerns in recent months, and given the party’s margins in the lower house, it wouldn’t take much to thwart the whole effort.
That said, there is a political reality these members will need to consider: If Democratic lawmakers kill this bill, the damage to their political careers would be irreparable.