Manchin And Dems Reach Deal On Reconciliation Package, Call It "Inflation Reduction Act"
Sen. Joe Manchin (D-WV) on Wednesday announced that he's reached a deal with Sen. Chuck Schumer (D-NY) to advance legislation aimed at combating inflation by lowering healthcare costs and paying down the national debt.
"We must be honest about the economic reality America now faces if we want to avoid fanning the flames of inflation," he said in a statement. "At its core, the purpose of reconciliation is to get our economic and fiscal house in order. Contrary to foolish talk otherwise, America cannot spend its way out of debt or out of inflation."
The bill, the "Inflation Reduction Act of 2022" is scant on details, though Manchin says the 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."
It "would dedicate hundreds of billions of dollars to deficit reduction by adopting a tax policy that protects small businesses and working-class Americans while ensuring that large corporations and the ultra-wealthy pay their fair share in taxes"
July 27, 2022
As WaPo notes, "The measure also is expected to include provisions that aim to lower prescription drug costs for seniors, impose minimum taxes on corporations and raise money to lower the federal deficit."
"Inflation Reduction Act" will make the bad economy worse by:— Vance Ginn (@VanceGinn) July 27, 2022
1) Deepening recession with massive tax hikes that won't collect expected tax rev
2) Raising inflation from Fed monetizing deficit spending
3) Destroying reliable energy sources
Say NO, @SenatorSinema @Sen_JoeManchin! https://t.co/9JkrfnQYN9
"For too long, the reconciliation debate in Washington has been defined by how it can help advance Democrats political agenda called Build Back Better," said Manchin. "Build Back Better is dead, and instead we have the opportunity to make our country stronger by bringing Americans together."
However, it's a blow for Democrats hoping to have child care, paid leave, or a child tax credit extension included in the reconciliation bill. This will be far smaller than Build Back Better, particularly on the social spending front.— Grace Segers (@Grace_Segers) July 27, 2022
When you spend another trillion dollars to hand out to special interests & buy votes and call it “inflation reduction” pic.twitter.com/dHc6QdBEtg— Liberal World Order Swan (@TheWuhanClan) July 27, 2022
The announcement opens the door for Democratic lawmakers to begin work as soon as next week to advance parts of President Biden's agenda that have been stalled for seven months.