Manchin says Build Back Better is dead, announces deal on inflation
Build Back Better is dead, Sen. Joe Manchin (D-WV) said Wednesday in announcing that he has instead reached a deal with Senate Majority Leader Chuck Schumer (D-NY) on an alternate measure known as the Inflation Reduction Act of 2022. HOUSE OVERSIGHT COMMITTEE TARGETS GUN INDUSTRY PROFITS AFTER MASS SHOOTINGS As Democrats seek to defend their congressional majorities this fall amid voter concerns over inflation, the bill’s title is seemingly designed to address these worries. Manchin, a centrist Democrat who is currently recovering from COVID-19, said late last year he would not support the $2.
White House Press Secretary Karine Jean-Pierre cheered the renamed Inflation Reduction Act as 'historic' Friday and brushed off a new analysis that showed its impact on prices would be 'statistically indistinguishable from zero.'
She called the deal, struck between West Virginia Democratic Sen. Joe Manchin and Majority Leader Charles Schumer 'historic legislation this is going to be a game changer for so many Americans.'
It has the potential to hand President Biden a major win after prolonged negotiations, and would invest billions in climate programs while meeting his pledge to establish a 15 per cent minimum tax.
How Manchin struck a miracle of a deal with Schumer, Pelosi and Biden
A months-long standoff between Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) ended Wednesday when they reached a historic deal on deficit reduction, an Affordable Care Act extension, drug price reductions, climate and clean-energy investments to provide energy security, and expedited full-spectrum energy-permitting reform. Washington, the Democratic Party, and perhaps the world…Washington, the Democratic Party, and perhaps the world can breathe more easily again because — by some miracle of twisted turns and backflips — Schumer, Manchin, President Biden and House Speaker Nancy Pelosi (D-Calif.
Jean-Pierre also blasted Republicans who are lining up against it.
'We have a plan to fight inflation. We are we are ready to help middle class families and not and Republicans who are opposing that. They're opposing that because of false rage,' she said.
The bill got renamed as Manchin lopped off numerous programs after raising concerns about inflation, and appearing to back away after a record 9.1 per cent inflation figure for June.
But a new Penn Wharton analysis by the University of Pennsylvania concluded the package would 'very slightly increase inflation until 2024 and decrease inflation thereafter. These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.'
Democrats bet on two Joes to salvage flagging November hopes
President Joe Biden may have received a big boost over 100 days out from the midterm elections, but a breakthrough in the Senate that could lead to significant portions of his agenda getting passed comes at a time of deep economic uncertainty. Sen. Joe Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) announced Wednesday night a preliminary agreement for a bill called the Inflation Reduction Act of 2022 that would include higher taxes for corporations, climate change initiatives, and, possibly, lower prescription drug prices, among other items.
But it could have an impact on Manchin, who has cited Penn Wharton analysis in the past.
Manchin was still cheering the bill Friday, two days after announcing the deal.
'The Inflation Reduction Act is not a Democratic or Republican bill. It's a bill for America. We have an opportunity to lower drug costs for seniors, lower ACA health care premiums, increase our energy security & invest in energy technologies - all while reducing our national debt,' he tweeted.
Less certain is Democratic Sen. Kyrsten Sinema, who has avoided reporters and declined to comment on the bill.
Jean-Pierre began her briefing singling out the bills for closing the carried interest loophole, which allows wealthy individuals to pay lower tax rates than their staff by taking earnings as capital gains instead of ordinary income.
But that is a provision Sinema has criticized, although one that Manchin calls an essential part of the package.
Jean-Pierre wouldn't even say the White House had reached out to take Sinema's temperature on the matter.
'I not going to read out any calls or potential calls' with lawmakers, she said.
'The President has regular conversations with members of Congress, his team, as we have said have been communicating with with the senators on this bill, offering any ticket technical assistance, or any guidance that they might need from us, but I don't have anything to read out on a potential call,' she said.
Even without the political pitfalls, Democrats have had trouble assembling their 50-seat Senate majority amid covid cases within their ranks.
Inflation could cost Biden and the Democrats greatly .
There is a reason President Joe Biden has gone from describing inflation as “transitory” to listing it as his “top domestic priority.” The last time inflation, now running at a 41-year high, was this bad, rising consumer prices helped make the Democrat in the White House a one-term president. Republicans won the next three presidential elections. Biden would like to avoid this fate. It may be too late for the narrow Democratic congressional majorities, especially in the House. Already disfavored due to recent history and redistricting, inflation appears to be the issue most likely to fuel a red wave in November.