The Senate passed the $740 billion Inflation Reduction Act Sunday afternoon, after a session of more than 15 hours lasted all night.
The package, negotiated by the Democratic Sens. Joe Manchin of West Virginia and Chuck Schumer of New York, went along party lines, with Vice President Kamala Harris breaking the upper chamber’s 50-50 tie. The bill includes nearly $370 billion in green energy subsidies and tax credits, nearly $80 billion in funding for the Internal Revenue Service, and a drug pricing mechanism for Medicare. It too determines a 15% tax on companies with a market capitalization of more than $1 billion.
While Democrats have repeatedly claimed the bill will reduce inflation, the University of Pennsylvania’s Penn Wharton Budget Model has “little confidence that the legislation will have any impact on inflation.” In addition, the bill is likely to increase taxes for Americans in every bracket, despite President Joe Biden’s promise not to tax anyone earning less than $400,000 a year. The Inflation Reduction Act will repay the federal deficit by more than $3o0 billion, the unbiased Committee for a Responsible Federal Budget found it.
Senators voted down 35 amendments and passed two, with the 48 Democrats and the independent Angus King of Maine agreeing to oppose all of the amendments. amendments offered during vote-a-rama to give the legislation the best chance of success. Independent Senator Bernie Sanders of Vermont objected to the agreement, offering changes that would restructure the child tax credit, but his proposal failed 97-1.
“They are great amendments. I’m very happy and I think it says something that every Democrat and Republican voted against them. It says I’m doing something right,” Sanders complainedPolitico said. ‘I’m fighting for you. I think that should be the message – not to think of a complicated reason why you can’t vote for it.”
Biden, whose team had previously argued with Manchin during negotiations, applauded the vote. (RELATED: Joe Manchin Says He Was ‘Exiled’ and ‘Victimized’ for Killing a Better Build)
“Today, Senate Democrats passed the Inflation Reduction Act, siding with American families over special interests, voting to lower the cost of prescription drugs, health insurance and energy, and reducing the deficit, while the richest corporations get their fair share. pay,” he said in a statement.
Today, Senate Democrats passed the Inflation Reduction Act, siding with American families over special interests, voting to lower the cost of prescription drugs, health insurance and energy, and reducing the deficit, while the richest corporations get their fair share. Pay.
— Joe Biden (@JoeBiden) August 7, 2022
House of Representatives will pass legislation when it returns from recess on Aug. 12, Majority Leader Steny Hoyer announced. The bill is expected to be passed by the House of Representatives along party lines.