Kyrsten Sinema FINALLY gets on board with $740 BILLION Inflation Reduction - TopAsiafx

004, Aug 2022

Sen. Kyrsten Sinema has finally agreed to 'move forward' with a revised version of her party's $740 billion Inflation Reduction Act. Sinema, a centrist who was seen as the pivotal vote on the bill, agreed to the health care, climate and deficit-reduction package after lawmakers made changes to its energy and tax provisions.

'We have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy in the Senate’s budget reconciliation legislation,' the Arizona Democrat said in a statement Thursday.

Her approval of the package is subject to a Senate arbiter's approval of the bill, which Democrats intend to pass over Republican objections.

Senate Majority Leader Chuck Schumer said the chamber would convene on Saturday to vote on a motion to proceed and then begin debate on the bill.

The bill known as the Inflation Reduction Act - introduced last week by Schumer and Democratic Senator Joe Manchin - represents a key priority for Democrats and President Joe Biden ahead of November's election battle for control of Congress.

The Inflation Reduction Act will raise $739 billion in revenue from tax boosts on high earners and some huge corporations, beefed up IRS tax collections and curbs on drug prices, which would save money for the government and patients. 

It would spend much of that on energy, climate, and health care initiatives, still leaving over $300 billion for deficit reduction. 

Sinema, who was lobbied by lawmakers on both sides of the aisle ahead of the Senate’s summer recess next week, agreed to the bill on Thursday - one day after she aired her concerns with the legislation to her colleagues.

She had previously been silent since Manchin announced the deal this week. 

Sinema said Democrats had agreed to remove a provision raising taxes on 'carried interest,' or profits that go to executives of private equity firms.  

That's been a proposal she has long opposed, though it is a favorite of Manchin and many progressives. 

The carried interest provision was estimated to produce $13 billion for the government over the coming decade, a small portion of the measure's $739 billion in total revenue.

Without the provision, private equity and hedge fund financiers can continue to pay the lower capital gains tax rate on much of their income, instead of the higher income tax rate paid by wage-earners.

The provision will be replaced by a new excise tax on stock buybacks which will bring in more revenue than that, said one Democrat familiar with the agreement who spoke on condition of anonymity because they were not authorized to discuss the deal publicly. The official provided no other detail.

Though providing no detail, Sinema said she had also agreed to provisions to 'protect advanced manufacturing and boost our clean energy economy.'

Schumer said the measure retained the bill's language on prescription drug pricing, climate change, 'closing tax loopholes exploited by big corporations and the wealthy and reducing federal deficits.

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He said that in talks with fellow Democrats, the party 'addressed a number of important issues they have raised.' He added that the final measure 'will reflect this work and put us one step closer to enacting this historic legislation into law.'

Sinema noted that Senate parliamentarian Elizabeth MacDonough is still reviewing the measure to make sure no provisions must be removed for violating the chamber's procedures. Source: NATASHA