Senate Majority Leader Chuck Schumer and Sen. Joe Manchin announced a deal on Wednesday, but it will face furious GOP opposition. The deal includes several provisions that Manchin had privately scoffed at.
The agreement would invest $369 billion in energy and climate change programs, and allow Medicare to negotiate prices for certain medications. It would also extend enhanced subsidies for Affordable Care Act coverage for three years.
The announcement comes at a crucial time for Congress, as the Senate is a little over a week away from starting a monthlong recess when many Democrats will campaign for reelection. The deal still faces multiple hurdles before it can make it to Biden’s desk.
Schumer’s office said the bill would reduce US carbon emissions by roughly 40% by 2030. Clean energy tax credits would drive the majority of those emission reductions, a Democratic aide said.
The details of the climate package were expected to be released on Wednesday evening. If it achieves the emissions reductions Schumer is promising, it would be a huge step forward.
The deal keeps the prescription drug price changes that Manchin had previously agreed to, and also redesigns Medicare’s Part D drug plans so that seniors and people with disabilities wouldn’t pay more than $2,000 a year for medication bought at the pharmacy.
The agreement also calls for extending the enhanced Affordable Care Act subsidies for three years. The subsidies were extended through this year as part of Democrats’ $1.9 trillion coronavirus relief package, known as the American Rescue Plan.
To raise revenue, the bill would impose a 15% minimum tax on corporations, close the carried interest loophole, and provide more funding to the IRS for tax enforcement. Families making less than $400,000 per year would not be affected.
Manchin said the deal would ensure that “large corporations and the ultra-wealthy pay their fair share in taxes” and reduce the deficit by more than $300 billion.
However, the deal doesn’t contain the tax rate hikes on rich Americans and big companies that Democrats initially wanted.
For more on this story, please consider these sources:
- In a major boost to Democrats, Manchin and Schumer announce deal for energy and health care bill CNN
- Manchin, Schumer agree to vastly pared back version of Build Back Better Fox News
- Senate Democrats reach deal on Inflation Reduction Act CBS News
- Manchin, in Reversal, Agrees to Quick Action on Climate and Tax Plan The New York Times
- Senate Deal Includes EV Tax Credits Sought by Tesla, Toyota Bloomberg
- View Full Coverage on Google News