Now that McConnell allowed CHIPS to pass, Democrats, especially Manchin, see an opportunity to pass yet another massive legislative package. The Build Back Better bill is back, only now it’s called The Inflation Reduction Act, and it will cost nearly $800b.
“I strongly support the passage of commonsense policies that reduce inflation and focus on the major challenges confronting America today and in the future,” Manchin said in a statement.
“I now propose and will vote for the Inflation Reduction Act of 2022. 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,” he added.
Democrats, who love wealth redistribution, will redo the tax code, charging corporations a 15 percent corporate minimum tax. They will lower drug prices, which Donald Trump had done and Biden canceled. The Democrat plan will be in the form of price controls. Additionally, they will spend $369 billion on combating climate change. That will include cutting carbon emissions by about 40 percent by 2030. That is very drastic.
There is a plan to reduce the deficit by $300 billion over ten years.
We will also see more IRS tax enforcement.
Subsidies for the Affordable Care Act will be expanded.
The bill includes $14 billion in new revenue from taxing carried interest. Arizona Senator Kyrsten Sinema is opposed to that and might not agree.
The total package is at least $739 billion to start.
The package summary from CNBC:
- $313 billion through a 15% corporate minimum tax
- $288 billion through prescription drug pricing reforms, including measures to allow Medicare to negotiate drug prices and cap out-of-pocket costs to $2,000
- $124 billion through the IRS enforcement of a reformed tax code
- $14 billion through closing the carried interest loophole
The bill would also ‘invest’ a total of $433 billion:
- $369 billion from a suite of energy and climate-related programs
- $64 billion from extending an expanded Affordable Care Act program for three years, through 2025
The nascent deal would generate $313 billion in new revenue over ten years by increasing the corporate minimum tax to 15%, according to a one-page summary distributed by Manchin’s office.