LISAMAS CARO and ALAN FRAM-AP communication
Washington (AP) -President Joe Biden announced on Thursday that he supported the “historic” inflation struggle agreement launched by Senate leader Chuck Schumer and Democratic Senator Joe Manchin. And it seemed almost lost.
Mr Biden said the bill would be a “heavenly blessing” for American families.
“This bill will be the most important law in history to tackle the climate crisis,” Biden said. He also said it would reduce medical costs for millions of Americans who buy their own health insurance under affordable care laws.
Biden has vowed that the package will not raise taxes for people with an annual income of less than $ 400,000. Instead, a 15% corporate minimum tax will help raise new costs and further reduce the deficit.
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He admitted that the final product was a compromise, but it was bright to win congressional support.
“My plea is to put politics aside. Get it done,” Biden said.
The $ 739 billion packageIs not as potential for the party as Biden once envisioned, with a long-standing goal of addressing healthcare and climate while raising taxes and reducing federal debt to high-income earners and large corporations. It continues to be a remarkable achievement.
The Senate will vote on a wide range of bills next week, giving the president and his party an unexpected victory for the November elections, when parliamentary rule is at stake. Perhaps in late August, the House of Representatives will continue to vote, as the unanimous opposition of the Republicans in both houses is definitely visible.
Senate Majority Leader Chuck Schumer gives fellow Senate Democrats the opportunity to achieve two “very important” priorities on health care and climate change if he approves a deal he mediated with Manchin. Said there was.
Schumaer spoke at a subsequent private meeting Amazing turnaround He and Manchin struck over a broad agreement that had avoided them for months. Democratic leaders’ comments were relayed by those familiar with the conference and given anonymity to discuss it.
Manchin called the one billion package a “win-win”. This shouldn’t be a big surprise, despite having talked over and over again over the months. He bristled his proposal to keep his party hanging when he refused to support his earlier, broader bill.
“I’ve never been away from anything in my life,” Manchin told reporters in a video chat as he was quarantined at COVID-19. Manchin called it a “good bill” that would benefit the country. “It’s a Democratic and Republican bill.”
But the bipartisan bill is not.
Schumaer warned a colleague in the 50-50 Senate that the final passage would be difficult. Due to Republican resolute opposition, Democrats rely on their razor-thin majority and do not have a generous vote.
An important vote, Senator Kyrsten Cinema, Arizona, was still considering an agreement, spokeswoman Hannah Harley said. Mr Cinema supported Manchin last year insisting on lowering the cost of the bill, but opposed the proposal to raise the tax rate, and a spokeswoman introduced her comments last year in favor of a company’s minimum tax. ..
Manchin said Thursday he hadn’t talked to Cinema about the new compromise.
Just hours before the announcement late Wednesday, Schumer, DN.Y. , And Manchin, DW.Va. , Looks like a loggerhead turtle and heads for a much narrower package Manchin’s allegations were limited to holding down drug prices and expanding federal health subsidies. Earlier Wednesday, many Democrats said they had almost resigned to more modest legislation.
There was no immediate explanation for Manchin’s sudden willingness to support the new bold move. Since last year, he has used a significant vote in the 50-50 Senate to force Biden and Democrats to abandon the much more ambitious and expensive version. He dragged them through months of negotiations against the White House and most parliamentary Democrats, as leaders’ concessions to reduce the bill proved futile.
Needless to say, the Democratic Party has called the measure on page 725 the “2022 Inflation Reduction Act” because of its provisions aimed at helping Americans cope with the dramatically rising consumer costs this year. is. According to polls, inflation materialized by gasoline prices exceeding $ 5 per gallon before the easing was of primary concern to voters. For months, Manchin’s opposition to the larger proposal has partially presupposed his concern that they would contribute to inflation.
In addition to inflation, the bill seemed to provide something to many Democratic voters.
It hung tax increases for wealthy and large corporations and environmental initiatives for progressives. And Manchin, an advocate of fossil fuels produced by his state, said the bill would invest in carbon-based clean energy technology while reducing methane and carbon emissions.
Schumer and Manchin said the measure would reduce carbon emissions by about 40% by 2030. Senator Jeff Merkley, an environmental advocate who was angry in his absence, said it couldn’t meet Biden’s 50% target, but its reductions, climate spending on countermeasures, and the work it creates were “big deal”. The senator said. Of those provisions so far.
The overall proposal is far less ambitious than the $ 3.5 trillion package that Biden asked Democrats to pass parliament last year, about which House approved in November last year after Manchin insisted on shrinking. A simplified version of $ 2 trillion. Still, Manchin claimed that the next month he shot down the small measure, which encouraged inflation and set a budget.
Democrats said their proposal would generate $ 739 billion in new revenue over a decade, including $ 313 billion from a 15% corporate minimum tax. They said it would affect about 200 of the country’s largest companies with profits of over $ 1 billion currently paying under the current 21% enterprise rate.
The agreement also includes $ 288 billion in government savings from curbing drug prices. These provisions limit Medicare to start price negotiations for a modest number of drugs, pay Medicare a rebate if price increases exceed inflation, and limit the beneficiaries of the program to $ 2,000 per year. I request that you do.
The transaction also earned $ 124 billion by strengthening IRS tax enforcement and $ 14 billion by taxing some of the “carry-over gains” earned by business partners such as private equity and hedge funds. Claims to win.
The bill will spend $ 369 billion on energy and climate change initiatives. These include consumer tax credits and rebates to buy clean energy vehicles and promote energy efficiency in the home. Tax credit for solar panel manufacturers. $ 30 billion in grants and loans for utilities and the state to gradually convert to clean energy. $ 27 billion to reduce emissions, especially in low-income areas.
We also aim to reach $ 64 billion by extending federal subsidies for another three years for some people who buy private health insurance. These subsidies that lower people’s premiums will otherwise expire at the end of the year.
It will leave $ 360 billion for debt reduction, the effort Manchin demanded. That’s a fair amount, but it’s a trillionth of the cumulative deficit that the government expects to build over the next decade.
If the Democrats can unite their army, Republican opposition will not be a problem. Democrats can win if they lose less than four votes in the House of Representatives and remain firmly united in the 50-50 Senate, where Vice President Kamala Harris can cast tiebreaker votes. They use a special process to pass the bill without reaching the 60 votes required by most laws there. Members of the Chamber of Commerce must ensure that the bill does not violate the Chamber of Commerce budget process. A review is currently underway.
AP reporters Matthew Daly, Will Weissert, Kevin Freking, Seung Min Kim, and Zeke Miller contributed to this report.
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Biden Calls for Manchin’s “Grace of Heaven” for US Families | Government & Politics
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