After over a year of “Build Back Better” discussions, Majority Leader Chuck Schumer and Senator Joe Manchin reached an accord on a significantly scaled-back reconciliation bill on Wednesday.
Additional Tax Revenue?
At $433 billion in spending, the bill is just under one-sixth the cost of the nearly $3 trillion monster bill Democrats were considering at this time last year.
It contains fewer provisions, but according to the Democrats, it will generate $739 billion in additional tax revenue.
In a joint release on Wednesday, Schumer and Manchin said the Inflation Reduction Act of 2022 would help combat inflation.
They said it would invest in renewable energy manufacturing and production, and cut carbon emissions by approximately 40% by 2030.
Joe Manchin caved to radical Democrats to greenlight massive tax hikes, more reckless spending, and subsidies for ineffective green energy.
We must win back the House majority this November to stop the Green Raw Deal and save America!
— Jim Bognet (@Bognet4congress) July 28, 2022
They noted the law will finally permit Medicare to discuss prescription medications and reduce the healthcare costs for millions of Americans.
Earlier, Democrats consented to sections of the package that would extend portions of the Affordable Care Act (ACA), popularly known as ObamaCare, and try to reduce prescription medication prices.
The deal, according to a description of the measure issued on Wednesday, would prolong the ACA through 2025 and permit Medicare to negotiate prescription medication pricing.
According to Democrats, the ACA renewal would cost $64 billion, but prescription medication reform would save the nation $288 billion.
Of course Joe Manchin double crossed his Senate GOP colleagues to do Chuck Schumer’s bidding with a reconciliation gimmick
He’s a professional democrat. This is what they do. It’s a party that punishes integrity and rewards treachery.
— Buck Sexton (@BuckSexton) July 28, 2022
Until Wednesday, the Democrats had been stalled on tax, gas, and climate legislation.
Manchin, who hails from an energy-producing state, frequently disagrees with his own party about climate policy.
Aside from his outspoken concerns about pricing and the economy, the centrist senator frequently states that Congress must exercise caution when enacting economic reforms.
Per the bill summary, however, the Manchin-Schumer proposal would spend $369 billion on climate and energy initiatives.
It also includes a 15% corporate minimum tax on companies worth more than $1 billion, which is expected to generate $313 billion, enhanced IRS tax enforcement, which is expected to generate $124 billion, and tax loophole closure, which is expected to generate $14 billion.
In addition to their opposition to tax increases, Republicans will undoubtedly oppose a number of the bill’s renewable energy and climate change elements.
Among them is approximately $1.9 billion for a “Grant Program for Neighborhood Access and Equity.” In impoverished regions, this funding might be used, among other things, to repair areas with “gaps in tree cover coverage.”
Tree Planting Initiatives?
A further section of the law will allocate $1.5 billion “for tree planting and related activities, with a focus on programs that help underprivileged communities and regions.”
Another section of the law allocates $403 million for IRS expenses, which include the purchase and rental of passenger vehicles.
Sen. John Barrasso of the Republican Party stated in the bill that amid downturn, Democrats are pushing tax hikes, eliminating employment, stifling savings, and strangling American energy.
In addition, they are expanding the IRS in order to target working families and small companies. Their tax plan also includes tax benefits for electric vehicles and Obamacare subsidies for high-income individuals.
Barrasso said this irresponsible tax and spending binge will burden working families with further higher costs, other tax increases, and additional suffering.