After more than a year of negotiation, and just a week after talks appeared to break down, Senate Democrats might bring a much-reduced version of the Build Back Better plan to a floor vote. Majority leader Chuck Schumer and longtime holdout Sen. Joe Manchin of West Virginia released a joint statement Wednesday on a deal regarding climate change, drug prices, and corporate taxes.
“The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030,” Schumer and Manchin said. “The bill will finally allow Medicare to negotiate for prescription drugs and lower health care costs for millions of Americans. Additionally, we have reached agreement with President Biden and Speaker Pelosi to pass comprehensive permitting reform legislation before the end of this fiscal year. We urge every member of the U.S. Senate to support this important legislation.”
A one-page summary of the Inflation Reduction Act calls for a 10-year investment of $369 billion for “energy security and climate change” programs and a $64 billion extension of the Affordable Care Act, also known as Obamacare. Medicare out-of-pocket expenses would be capped at $2,000.
A 15% corporate minimum tax ($313 billion), drug pricing savings from Medicare negotiation ($288 billion), additional revenue through IRS tax enforcement ($124 billion), and closure of the carried interest tax loophole ($14 billion) will raise $739 billion in federal revenue over the next 10 years. More than $300 billion of that will go toward deficit reduction, the summary says.
Manchin and Schumer said they expect the Inflation Reduction Act to go before the Senate next week. It will need 50 votes to pass there and will also need to pass the House of Representatives before it can go to the White House for Biden’s approval.