Sen. Kyrsten Sinema offered critical support for President Joe Biden’s domestic agenda on Thursday night. After party leaders agreed to change new tax proposals. Indicats that she would “move forward” on Democrats’ sweeping economic package, the result of more than a year of intense negotiations.
With Sinema’s support, Democrats will likely have 50 votes in their caucus to pass the bill through their chamber. By the end of the week, before it moves to the House for final approval next week.
This economic bill will give large investments –
While the plan is less ambitious than Biden’s initial Build Back Better proposal, the latest bill, known as the Inflation Reduction Act. It would represent the largest investment in energy and climate programmes in US history. Extend expiring health care subsidies for three years. And give Medicare the power to negotiate prescription prices for the first time. To pay for it, the legislation would levy new taxes.
Democrats face one more hurdle: a review by Senate parliamentarian Elizabeth Mac Donough. Who must decide whether the bill’s provisions meet strict rules in order for Democrats to use the filibuster-proof budget process to pass legislation along party lines.
Sinema indicated that she won several changes –
However, after days of discussions with Senate Majority Leader Chuck Schumer, Sinema indicated she was prepared to vote to proceed.
“Subject to Parliament’s review,” she said in a statement, after remaining silent on the bill for more than a week.
Sinema stated in the statement that she won several changes to the tax provisions in the package, including the removal of a provision that would have tightened the carried interest loophole, aiming to raise the taxes paid by hedge fund and private equity managers. That proposal would have generated $14 billion in revenue. She also claimed to have won changes to Democrats’ plans to limit how businesses can deduct depreciated assets from their taxes.
Sinema said Budget reconciliation legislation –
“In the Senate’s budget reconciliation legislation, we have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy economy,” Sinema said.
To compensate for the lost revenue, Democrats agreed to include a 1% excise tax on stock buybacks as part of the agreement, raising an additional $73 billion, according to a Democratic aide.
The final version of the Reconciliation bill –
The $300 billion deficit reduction target was a top priority for Sen. Joe Manchin, a West Virginia Democrat who signed on to the agreement after talks with Schumer last week.
“The agreement maintains the major components of the Inflation Reduction Act, such as lowering prescription costs, combating climate change, closing tax loop holes by big corporations and the wealthy, and reducing the deficit by $300 billion,” Schumer said in a statement. “The final version of the Reconciliation bill, which will be introduced on Saturday, will reflect this work and bring us one step closer to passing this historic legislations.”
Extreme pressure on Sinema –
Sinema was not a part of the deal and only found out about it last week. Her aides only stated that she would wait until the Senate parliamentarian’s review was completed before taking a position on the deal. Nonetheless, she had been making her demands clear to Democratic leaders, including a $5 billion increase to help the Southwest deal with its multi-year drought, according to multiple sources.