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.
The Inflation Reduction Act does a lot of things. It raises taxes on almost everyone, including those who make less than $10,000 a year. It gives billions to the wealthy to help them buy electric cars. It raises taxes on those producing energy on public lands. And it gives tens of billions to health insurance companies.
What it doesn’t do, however, is reduce inflation. In fact, according to the University of Pennsylvania, it raises inflation through 2024. “The Act would very slightly increase inflation until 2024 and decrease inflation thereafter,” the Penn Wharton Budget Model staff write. “These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.”
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.
So why did Sen. Joe Manchin (D-WV) call his 725-page legislation “The Inflation Reduction Act” if it doesn’t reduce inflation?
It appears he is trying to cover up the fact that he caved to pressure from far-left activists to pass President Joe Biden’s Build Back Better agenda.
“Build Back Better is dead,” Manchin insisted to reporters this week. “Instead we have the opportunity to make our country stronger by bringing Americans together. I will do everything I can to usher in a new era of compromise and commonsense that will make America more energy secure, financially sound and a more united country for this generation and the next.”
Don’t expect that “new era of compromise” to start anytime soon. Democrats still plan to pass the Inflation Reduction Act through the Senate’s reconciliation process with only Democratic votes. No Republicans have signed on to the bill’s massive tax hikes and none are expected too.
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.
Democrats still aren’t even sure they will have all 50 of their own members on the bill, as Sen. Kyrsten Sinema (D-AZ) still has not said whether she supports it. Additionally, Sen. Dick Durbin (D-IL) tested positive for COVID-19 Thursday. While he is expected back later next week, Democrats cannot start advancing the reconciliation process on the floor until they have all 50 votes in Washington. Unlike the House, the Senate never allowed proxy voting.
Raising taxes on Americans by $739 billion a week after the Commerce Department confirmed that the economy shrunk for the second consecutive quarter is a risky bet for Democrats. If the economy continues to contract, Republicans will point to the inaptly named “Inflation Reduction Act” as a big reason why.
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Tags:Opinion, Inflation, Joe Biden, Washington D.C., Joe Manchin, Taxes, tax increases, federal spending
Original Author:Conn Carroll
Original Location:The Inflation Reduction Act doesn’t reduce inflation
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.