If the $740 billion measure is less ambitious than The original vision of President Joe Biden, that would be a substantial achievement and is the reason senators stayed up all night during a voting session that began on Saturday. So far, Democrats have swept aside more than two dozen Republican amendments intended to torpedo him.
Despite unanimous opposition from the GOP, House Democrats 50-50 were unified, buoyed by Vice President Kamala Harris’ decisive vote, suggesting the party is heading for a morale-boosting victory three months from the election when control of Congress hangs in the balance .
“I think it will pass,” Biden told reporters as he left the White House early Sunday to travel to Rehoboth Beach, Delaware, ending his COVID-19 isolation. The House appeared on track to provide final congressional approval when it briefly returns from summer recess on Friday.
But concerns over objections to the new 15% minimum corporate tax that private equity firms and other industries threatened to slow progress.
Sen. John Thune of South Dakota, the second-ranking Republican, was working on an amendment that would remove the tax for certain sectors. He was trying to draw support from the Democratic Sens party. Kyrsten Sinema of Arizona and Joe Manchin of West Virginia, two resisters who have resisted their party before.
Thune predicted several more hours of negotiations and debates. “I hope we have a solution to land the plane,” he told reporters on Capitol Hill.
Despite the momentary setback, the “Cutting Inflation Act” would give Democrats a campaign season showcase to act on coveted goals. It includes the largest-ever federal effort on climate change, at nearly $400 billion, caps Medicare drug costs for seniors at $2,000 a year, and extends expiring subsidies that help 13 million people. to afford health insurance.
Barely more than a tenth the size of Biden’s initial rainbow of $3.5 trillion 10-year progressive aspirations in his Build Back Better initiative, the new package drops its proposals for universal pre-school education, paid family leave and expanded childcare support.
Biden’s initial measure collapsed after Manchin objected, saying it was too costly and would fuel inflation. Nonpartisan analysts have said the current bill would have a minor effect on soaring consumer prices.
Republicans said the measure would undermine an economy that policymakers are struggling to prevent from plunging into recession. They said the bill’s business taxes would hurt job creation and drive up prices, making it harder for people to deal with the country’s crisis. worst inflation since the 1980s.
In a test imposed on all budget bills like this, the Senate endured an uninterrupted “vote-a-rama” of sweeping amendments. Each has tested Democrats’ ability to stay together a compromise brokered by Senate Majority Leader Chuck Schumer, D.N.Y., with Progressives, Manchin and Sinema.
Sen. Bernie Sanders, I-Vt., proposed amendments to further expand the health benefits of the legislation, and those efforts were defeated. Most of the votes were forced by Republicans and many were designed to make Democrats look lenient on US-Mexico border security and gas and energy costs, and like bullies for wanting to bolster the IRS tax law enforcement.
Before debate began on Saturday, the bill’s prescription drug price restrictions were watered down by the nonpartisan Senate congressman. Elizabeth MacDonough, who arbitrates questions on chamber proceedings, said a provision should fall that would impose costly penalties on drugmakers whose price increases for private insurers exceed inflation.
It was the bill’s main protection for the 180 million people with private medical coverage that they get through work or buy themselves. Under special procedures that will allow Democrats to pass their bill by a simple majority without the usual 60-vote margin, its provisions must focus more on dollar-and-cent budget numbers than policy changes .
But the bulk of their pharma price talk remained. This involved letting Medicare negotiate what it pays for drugs for its 64 million elderly beneficiaries, penalizing manufacturers for outpacing inflation on pharmaceuticals sold to Medicare, and limiting drug costs for beneficiaries. at $2,000 per year.
The bill would also cap Medicare patient costs for insulin, the expensive diabetes drug, at $35 a month. Democrats wanted to extend the $35 cap to private insurers, but that went against Senate rules. Most Republicans voted to drop it from the package, although in a sign of the political might of health care costs, seven GOP senators joined Democrats in an attempt to preserve it.
The measure’s final costs have been recalculated to reflect the late changes, but overall would bring in more than $700 billion over a decade. The money would come from a minimum 15% tax on a handful of corporations with annual profits over $1 billion, a 1% tax on corporations that buy back their own stock, strengthening of IRS tax collections and government savings from lower drug costs.
Sinema forced Democrats to scrap a plan to prevent wealthy hedge fund managers from paying less than personal income tax rates on their earnings. She also joined other Western senators in winning $4 billion to fight drought in the region.
It was on the energy and environment side that the compromise was most evident between the progressives and Manchin, a champion of his state’s fossil fuels and coal industry.
Clean energy would be encouraged by tax credits for the purchase of electric vehicles and the manufacture of solar panels and wind turbines. There would be household energy rebates, funds for building factories developing clean energy technologies and money to promote climate-friendly farming practices and reduce pollution in minority communities.
Manchin won billions to help power plants reduce their carbon emissions, as well as language demanding more government auctions for oil drilling on federal lands and waters. Party leaders have also promised to push separate legislation this fall to expedite permits for energy projects, which Manchin wants to include a near-complete gas pipeline in his state.