In a Stunner, Manchin, Schumer, Strike Deal on Climate, Tax Package

July 27, 2022 by Dan McCue
In a Stunner, Manchin, Schumer, Strike Deal on Climate, Tax Package
Sen. Joe Manchin, D-W.Va., speaks to reporters outside the hearing room where he chairs the Senate Committee on Energy and Natural Resources, at the Capitol in Washington, July 19, 2022. (AP Photo/J. Scott Applewhite, File)

WASHINGTON — In a stunning and wholly unexpected turn of events, Sen. Joe Manchin, D-W.Va., announced Wednesday that he’d struck a deal with Democratic leaders in the Senate and would now support climate and tax measures he’d previously rejected.

It was less than a month ago when Manchin effectively scuttled the budget reconciliation bill that represented what was left of President Joe Biden’s Build Back Better plan.

But shortly after 4:30 p.m. Wednesday his office issued a lengthy 12-paragraph statement that said he would now support what he rebranded the “Inflation Reduction Act of 2022.”

“Build Back Better is dead,” he said. “Instead we have the opportunity to make our country stronger by bringing Americans together. 

“I will do everything I can to usher in a new era of compromise and common sense that will make America more energy secure, financially sound and a more united country for this generation and the next,” he added.

Less than an hour later, Manchin and Senate Majority Leader Chuck Schumer, D-N.Y., issued a joint statement which said, “After many months of negotiations, we have finalized legislative text.”

“The investments will be fully paid for by closing tax loopholes on wealthy individuals and corporations,” they said.

Senate Democrats plan to bring the reconciliation package to the floor next week and pass it on a party-line vote, bypassing a Republican filibuster under special Senate rules. 

Despite the length of his written statement, Manchin neither went into detail on the provisions of the package, nor did he explain what changes led to his change of heart.

The $670 billion bill the Senate will vote on is but a fraction of the $3 trillion package once envisioned by the White House and its allies on Capitol Hill.

Presuming all goes to plan and it passes, a fact sheet distributed with the joint statement said it will invest about $369 billion in energy and climate related programs over the next decade and devote about $300 million to deficit reduction.

The deal would raise $739 billion in new revenue. Slightly less than half of that amount — about $313 billion —  would be raised by  implementing a 15% corporate minimum tax.

Other projected revenues are a bit more speculative.

For instance, the fact sheet says $288 billion would be raised by empowering Medicare to negotiate lower drug prices, while another $124 billion would come from strong IRS enforcement of tax law.

An additional $14 billion would come from closing the so-called carried interest loophole which currently allows investment managers to pay the lower 20% long-term capital gains tax rate on income received as compensation, rather than the ordinary income tax rates of up to 37% that they would pay for the same amount of wage income

Manchin’s statement makes much of how the agreement targets inflation. Among the ways it does so, the fact sheet says, is by imposing no new taxes on families making $400,000 or less and no new taxes on small businesses.

“Rather than risking more inflation with trillions in new spending, this bill will cut the inflation taxes Americans are paying, lower the cost of health insurance and prescription drugs, and ensure our country invests in the energy security and climate change solutions we need to remain a global superpower through innovation rather than elimination,” Manchin said in his statement.

Dan can be reached at [email protected] and at https://twitter.com/DanMcC


A+
a-
  • Chuck Schumer
  • climate
  • Inflation Reduction Act of 2022
  • Joe Manchin
  • reconciliation bill
  • Senate
  • In The News

    Health

    Voting

    Political News

    October 1, 2023
    by Dan McCue
    Senate Votes, President Signs, Shutdown Averted

    WASHINGTON — With just over three hours to spare, the Senate last night passed a bipartisan bill to avert a... Read More

    WASHINGTON — With just over three hours to spare, the Senate last night passed a bipartisan bill to avert a government shutdown, and President Joe Biden signed it just before the midnight deadline. The measure will fund the federal government for 45 days, or until Nov.... Read More

    September 30, 2023
    by Dan McCue
    House Passes Stopgap Funding Bill, Senate Plans Vote Saturday Night

    WASHINGTON — After multiple failed attempts, the House on Saturday approved a “clean” stopgap funding bill in a last-ditch bid... Read More

    WASHINGTON — After multiple failed attempts, the House on Saturday approved a “clean” stopgap funding bill in a last-ditch bid to avert a government shutdown, sending the measure to the Senate with just hours to spare. In the end, after days of wrangling within the House... Read More

    September 29, 2023
    by Dan McCue
    Disorder in the House; Last Gasp Bid to Avert Shutdown Crushed in Chamber Vote

    WASHINGTON — A last gasp attempt to keep the federal government fully funded beyond this weekend turned into a crushing... Read More

    WASHINGTON — A last gasp attempt to keep the federal government fully funded beyond this weekend turned into a crushing defeat for House Speaker Kevin McCarthy, R-Calif., on Friday as 21 hard-right members of his conference voted against the plan that would have slashed the budgets... Read More

    Biden's Speech and Takeaways From the House Impeachment Hearing

    WASHINGTON (AP) — House Republicans on Thursday are holding the first hearing of their impeachment inquiry into President Joe Biden and their effort to... Read More

    WASHINGTON (AP) — House Republicans on Thursday are holding the first hearing of their impeachment inquiry into President Joe Biden and their effort to tie the him to the business dealings to his son Hunter. It’s a high-stakes opening act for Republicans as they begin a process that can lead to the ultimate... Read More

    September 28, 2023
    by Tom Ramstack
    House Republicans Advised to Tread Carefully as They Mull Biden Impeachment

    WASHINGTON — Constitutional law experts advised a congressional committee Thursday to be careful about overstepping its authority as lawmakers consider... Read More

    WASHINGTON — Constitutional law experts advised a congressional committee Thursday to be careful about overstepping its authority as lawmakers consider impeaching President Joe Biden. Republicans accuse him of using his political leadership to enrich himself and his family through influence peddling with foreign enterprises. If true,... Read More

    September 27, 2023
    by Tom Ramstack
    Congress Looks to Private Sector to Recover Pandemic Loans Lost to Fraud

    WASHINGTON — Shocking new figures on how much of the COVID-19 pandemic relief bailout funds went to fraud prompted a... Read More

    WASHINGTON — Shocking new figures on how much of the COVID-19 pandemic relief bailout funds went to fraud prompted a U.S. House committee on Wednesday to consider private sector strategies to recover more of the money for the government. The Small Business Administration recently estimated that... Read More

    News From The Well
    scroll top