Sen. Joe Manchin (D-W.Va.) and Senate Majority Leader Charles Schumer (D-N.Y.) reached their agreement on a major tax and climate package Tuesday evening but kept it a closely guard secret — giving Democrats just enough time to pass a $280 billion chips and science bill that Republicans would have otherwise blocked. The announcement of the deal, which would raise $739 billion in new tax revenue, fund an array of new climate provisions and pay down $300 billion of the federal deficit, came as a complete surprise to their Senate colleagues.
It was all the more surprising because less than two weeks earlier, the talks between Schumer and Manchin fell apart in dramatic fashion, when Schumer signaled he would proceed with a scaled-down budget reconciliation bill that included only prescription drug reform and a two-year extension of expiring Affordable Care Act subsidies. Manchin admitted Thursday morning that he and Schumer lost their tempers in a heated discussion on July 14 when the Democratic leader accused him of “walking away” from a deal after months of negotiations.
Republicans who voted for tens of billions of dollars for the domestic semiconductor manufacturing industry and the National Science Foundation were outraged and felt betrayed. Sen. John Cornyn (R-Texas), a key player in getting the chips and science bill passed, said he received “assurance privately from some Democrats, including the staff of the Senate majority leader, that the tax and climate provisions were off the table,” which Republicans said would be a precondition for moving the chips bill.
Schumer noted that the talks with Manchin broke down on July 14 but that Manchin “came to visit me” the following week. “Manchin requested a meeting with me on the 18th and he said, ‘Can we work together and try to put together a bill?’ I said as long as we finish it in August, we’re not waiting until September,” he said. Manchin said his staff took the lead at that point. “It was me and my staff and then we worked with Schumer’s staff. My staff was driving it, we wrote the bill. Schumer’s staff would look at it, we’d negotiate,” he told West Virginia radio host Hoppy Kercheval Wednesday morning. He said his staff shaved about $400 billion to $500 billion in other revenue-producing tax reforms from the bill. “There was a lot more revenue in there before that,” he said, explaining how the bill changed after he and Schumer blew up at each other. By Tuesday evening they agreed to setting a 15 percent corporate minimum tax on companies with profits in excess of $1 billion, beefing up IRS enforcement of tax compliance and closing the carried interest loophole that allows asset managers to pay capital gains tax rates on income earned from profitable investments.
https://thehill.com/homenews/senate/357 ... -betrayed/
The Democrats are calling the bill "The Inflation Reduction Act of 2022" and the Republicans are calling it the "Build Back Broke" bill.
Total raised: $739 billion
$313 billion — The legislation will raise revenues in part by imposing a corporate minimum tax of 15 percent.
$288 billion — The agreement calls for prescription drug pricing reform, which will allow Medicare to negotiate drug prices. Out-of-pocket costs will be capped at $2,000, the agreement summary says.
$124 billion — This revenue will be raised through Internal Revenue Service tax enforcement.
$14 billion — The two senators said the bill would raise these funds by closing the carried interest loophole. In the agreement, they note that there will be no new taxes imposed on families making $400,000 or less and that they are making the “biggest corporations and ultra-wealthy pay their fair share.”
Total investments: $433 billion
$369 billion — The legislation would contribute this amount in energy and climate provisions, which Manchin and Schumer said would “invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.”
$64 billion — The remaining investment is the estimated cost of three years of subsidies for Affordable Care Act premiums — an increase from the two-year extension Manchin had originally agreed to.
https://www.politico.com/news/2022/07/2 ... l-00048356
Every faction didn't get everything they wanted, but everyone got something.
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