Announcing on Wednesday, that they have struck a deal, Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) are set to move forward on a reconciliation package, that would aim to combat climate change, extend Obamacare subsidies, and lower the deficit. The Inflation Reduction Act of 2022, that would, in their eyes,-
“address record inflation by paying down our national debt, lowering energy costs and lowering healthcare costs.”
Both agreed, that the bill would lower deficits by $300 billion over ten years, spend $369.8 billion on climate change programs, and extend enhanced Affordable Care Act (ACA) subsidies for three years. Allowing Medicare to negotiate the price of drugs, is included in the measure, which would save money for the climate change and the Obamacare portions of the bill. This negotiation ability is said to reportedly save $288 billion.
Additionally, the legislation would also “close tax loopholes on wealthy individuals and corporations.” and levies a 15 percent minimum corporate tax, that is estimated to raise $313 billion. It would also raise $124 billion from enhanced tax enforcement, by the IRS as well as increase IRS audits, to pay for the enhanced Obamacare subsidies, contained in a potential reconciliation package. Expiring this year, the enhanced Obamacare subsidies, first created under President Joe Biden’s $1.9 trillion American Rescue Plan, or his coronavirus aid bill, would expire this year.
Hopeful Senate Democrats, plan to bring the package to the Senate floor next week, especially since the bill uses budgetary reconciliation, it would require only 50 votes, or the Democrat majority, to pass.
However, it remains to be seen whether Sen. Kyrsten Sinema (D-AZ) will support the bill.
A spokesperson for Sinema said.
“We do not have comment as she will need to review the text,”
-Spokesperson For Sen. Kyrsten Sinema (D-AZ)
The new version of the proposal from Schumer and Manchin, contains a provision to limit the carried interest deduction, a proposal that Sinema did not want altered, during previous Build Back Better negotiations.
The proposal may ,however, significantly affect the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, a $280 billion package that would boost domestic semiconductor chip manufacturing and high-tech research, which will be voted on by the House tomorrow. Senate Republicans just gave Democrats the vote to pass the bill on Wednesday. Republicans across the spectrum are now reticent, at the idea of passing the CHIPS bill, as Democrats appear ready to pass the climate change and Obamacare package.
Ranking member of the House Ways and Means Committee, Rep. Kevin Brady (R-TX), said Senate Democrats were deceitful in announcing a reconciliation deal, after getting Republicans to back the CHIPS bill. In reaction to the deal, Rep. Kevin Hern (R-OK) added-
“In light of this deal, whether Republican Members support CHIPS or not (I don’t), we must ALL vote no. Passing CHIPS will pave the way for the radical Build Back Broke plan. The time to fight is now,”.
- Rep. Kevin Hern (R-OK)
Either way, Republicans have been duped and the American tax-payer is yet again handed the bill. Costs are always handed down to the consumer. To think that spending more money saves any is ridiculous. It might however, stunt the amount of money the Pelosi’s stand to make if the CHIPS bill gets killed.
Further, this bill adds monies earmarked for the climate change cronies, extends Obama subsidies and expands the reach of the IRS with increased audits to essentially help pay for it. Again, this bill is a tax-payers nightmare, no matter where you are, individual or corporation. More spending equals more debt moving forward period.
It is plain that Joe Biden and his administration have no regard for Americas economic future, having passed some of the biggest, pork filled legislation in the history of our nation. This bill is just one more example of why he and his progressive left members must go. If America’s citizens do not find a way to end his reign over U.S. tax-payer’s wallets – the bread lines of yesteryear will return. Like Representative Hern (R-OK) said –
“The time to fight is now.”
- Rep. Kevin Hern (R-OK)
“A budget is telling your money where to go instead of wondering where it went.”
-Dave Ramsey