Manchin strikes important deal with Schumer over climate, taxes and healthcare

In an unexpected breakthrough, Sen. Joe Manchin, DW.Va., reversed his opposition to move fast on Wednesday a broad, filibuster-proof bill and announced it would back a package that includes big investments in drug pricing, provisions to tackle climate change and taxes on the wealthy.

Manchin announced the settlement in a joint statement with Senate Majority Leader Chuck Schumer, DN.Y., after months of talks between the two appeared to recently collapse. The deal represents a major breakthrough for elements of President Joe Biden’s agenda that appeared to be as good as dead.

“The Inflation Reduction Act of 2022 will make a historic down payment for deficit reduction to fight inflation, invest in domestic energy generation and manufacturing, and reduce carbon emissions by about 40 percent by 2030,” Schumer and Manchin said in a statement Explanation. “The bill will finally allow Medicare to negotiate prescription drugs and reduce health care costs for millions of Americans. Additionally, we have agreed with President Biden and Speaker Pelosi to pass a comprehensive permit reform bill before the end of this fiscal year. We urge every member of the US Senate to support this important bill.”

Image: Joe Manchin
Joe Manchin during a Senate Appropriations Subcommittee hearing in Washington on April 26, 2022.Greg Nash/Bloomberg via Getty Images

The two Democrats said the text of the deal will be presented to the Senate parliamentarian Wednesday night, “and the full Senate will consider it next week.”

The bill still needs the support of all 50 Democratic senators to become law, with no hope of GOP support. But Manchin, who represents a deeply conservative state, has been the biggest holder for a major bill in months, giving one version of the proposal a strong chance of getting through the Senate.

It would also have to pass the house before it reached Biden’s desk.

In a statement Wednesday, Biden praised the deal.

“This afternoon I spoke with Senators Schumer and Manchin and offered my support for the agreement they reached on legislation to fight inflation and reduce costs for American families,” the president said, urging swift passage The Law. “This is the action the American people have been waiting for. This will address the problems of today – high healthcare costs and headline inflation – as well as investing in our energy security for the future.”

According to a one-page summary, the bill will include $739 billion in new revenue through a 15% minimum corporate tax, prescription drug savings, additional IRS enforcement and a cap on the carried-interest tax break.

The bill will also include $369 billion in energy security and climate change spending and $64 billion in funding for the Affordable Care Act, for a total of $433 billion in spending.

There will be more than $300 billion in deficit reduction, the one-page summary added.

In a statement of his own, Manchin dismissed suggestions that he had deceived Democrats or backed away from points he said he preferred. Democrats were furious earlier this month when Manchin suggested he would oppose including climate and tax provisions in the deal.

“Regarding my position, I have never and will never turn away from solving the problems facing the nation we all love,” Manchin said in a statement. “I strongly support the adoption of sensible policies that reduce inflation and focus on the major challenges America faces today and in the future.”

He added, “For too long, the reconciliation debate in Washington has been defined by how it can help Democrats[‘] political agenda called Build Back Better. Build Back Better is dead, and instead we have an opportunity to make our country stronger by bringing Americans together.”

Two weeks ago, Manchin told Schumer he was ready to quickly push drug prices and health insurance funding, but would wait until mid-August to push bigger climate change investments or taxes, it said at the time.

Manchin spokesman Sam Runyon said: “Today’s announcement is not a reversal of anything.”

The carried-interest provision could be a problem for Sen. Kyrsten Sinema, D-Ariz. who signaled party leaders last year that she opposes the closure of the tax break, which mainly affects investment managers. Her office declined to comment immediately on the determination or the broader Schumer-Manchin deal Wednesday.

But it also represents a small part of the larger package, estimated at $14 billion in revenue, and is unlikely to prevent any version of the legislation from passing.

Sinema “has a decision to make, but I know her concerns were taken into account when it was put together,” Sen. Debbie Stabenow, D-Mich., told NBC News after the deal was announced.

In the home, the early progressive response was positive.

“If everything is true and if the language truly reflects what the top lines are, it is a great victory for the American people,” said Rep. Pramila Jayapal, D-Wash., the chair of the progressive caucus. “Keeping costs down, extending subsidies and tackling climate change is a really important set of investments in people’s healthcare.”

Kyle Stewart contributed. Manchin strikes important deal with Schumer over climate, taxes and healthcare

Fry Electronics Team

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