WASHINGTON — Sen. Kyrsten Sinema, D-Ariz., said Thursday he would “move forward” on a broad package of initiatives to fight climate change, lower drug prices and reduce the deficit by giving the Senate Democrats the votes they need to pass the Anti-Inflation Act.
cinema, the last democrat held up the bill, said she negotiated a repeal of a provision that raised taxes on rollover interests aimed at wealthy investors, addressing a key difference that held back her support.
“Subject to the MP’s review, I will go ahead,” Sinema said in a statement.
Her approval sets the final version of the bill to be tabled on Saturday, and the likelihood that President Joe Biden will win the legislation.
Senate Majority Leader Chuck Schumer, D-N.Y., said he was “pleased to report that we have reached an agreement on an anti-inflation bill that I believe will have the support of the entire Senate Democratic Conference.”
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Sinema’s deal with Schumer includes a new excise tax on stock buybacks that would bring in more tax revenue than the carried interest provision, according to a Democratic source familiar with the negotiations.
Democrats hope to pass the legislation on a party-line vote through a process known as budget reconciliation, which would allow approval by a simple majority and avoid the 60-vote threshold needed to defeat the Republican filibuster. That would require the votes of all the Democrats in the Senate, who are tied, and then Vice President Kamala Harris.
A Senate lawmaker is reviewing the bill to determine whether it can be considered under reconciliation rules and is expected to issue a decision soon.
“Tonight, we took another important step to lower inflation and lower the cost of living for American families,” Biden said in a statement Thursday night. “I look forward to the Senate passing this legislation and passing it as quickly as possible.”
Sinema, a White House thorn in the side of several policy proposals over the past year, has declined to speak publicly about the legislation for more than a week since Sen. Joe Manchin, DW.Va. and Schumer announced a deal on the Lower Inflation Act.
The legislation would allow Medicare to negotiate prescription drug prices, which the pharmaceutical industry has long opposed, and extend Affordable Care Act subsidies through 2025.
To combat climate change, the bill would provide billions in tax credits to develop and expand clean energy transmission infrastructure including programs that help Americans buy of electric vehicles that would help Biden meet his goal of significantly reducing cabin carbon emissions within a decade. To pay for the measures, the bill would set a 15% minimum corporate tax and strengthen Internal Revenue Service enforcement.
The bill will raise $739 billion. Legislation would reduce the federal deficit According to the US Congressional Budget Office, there will be 102 billion over the next decade.
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Manchin and Sinema last year rejected several measures related to Biden’s broader “Build Back Better” legislation, which sought to overhaul the Social Safety Net, stalling the bill. They also opposed the president’s push to take over the Senate to pass voting reforms and protect abortion rights.
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