August 15, 2022
Kirsten Cinema backs Joe Biden’s major climate, health and tax bill

Senate Democrats made a big move on Joe Biden’s key climate, tax and health legislation on Thursday night when a prominent senator, Kirsten Cinemas, moved to back the plan after days of heated intraparty talks.

Cinema’s support came after last-minute changes to the bill introducing a 1 percent excise tax on share repurchases by large companies, while cracking down on the preferential treatment of private equity and hedge fund profits as “carried” was known in interest”.

“The agreement will include a new excise tax on stock buybacks that brings in far more revenue than the interest provision made, meaning the deficit reduction figure will remain at $300bn,” said a Democrat familiar with the talks.

The deal paves the way for the first procedural vote on the bill in the upper house of Congress as soon as Saturday, before final passage by the end of the weekend in the Senate, before it is taken up by the House of Representatives.

If enacted, the bill would invest $369bn in clean energy incentives designed to fuel the fight against climate change in the US, as well as reduce the cost of drugs by empowering the government to negotiate prices. Will also take measures to do so. It would also impose a 15 percent minimum tax on large corporations, helping to reduce the budget deficit by $300bn over the next 10 years.

The plan is smaller and far less ambitious than Biden’s original “Build Back Better” legislation, originally worth $3.5tn, which failed to pass Congress last year amid a split between liberal and progressive Democrats .

Passing it would still represent a major legislative victory for the president and Democrats, who go to a midterm election in November, when they face an uphill battle to defend their majority in the House and Senate.

“I am pleased to report that we have reached an agreement on the Inflation Reduction Act, which I believe has the support of the entire Senate Democratic Convention,” Senate Majority Leader Chuck Schumer said in a statement Thursday. Will happen.” “I have had many fruitful discussions with our conference members over the past three days and we have addressed a number of important issues that they have raised.”

In its statement, Sinema said it would “proceed” with the bill after agreeing to “remove the interest provision, protect advanced manufacturing and boost our clean energy economy”. The law was fiercely opposed by Corporate America and Congressional Republicans, who have criticized it for extending Biden’s 2021 spending policies, which they blame for overheating the economy.

Cinema also won a concession from Democrats to exempt write-offs for certain capital investments, known as accelerated depreciation, from the minimum tax, a major priority for the business. But Jay Timmons, president of the National Association of Manufacturers, said in a tweet that he remained “skeptical” about the package.

The deal with Sinema follows a deal Schumer struck last month with Senator Joe Manchin of West Virginia, the other Democratic holdout.

Amid fierce Republican opposition, the law would require all Democrats in an equally divided Senate to vote in favor of the law, said Kamala Harris, vice president, then cast the deciding vote. It would then need to be passed by the House for Biden to sign into law.

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