Sen. Joe Manchin says he has health, energy, tax deal with Senate Majority Leader Chuck Schumer

WASHINGTON — In an unexpected turn, Senate Majority Leader Chuck Schumer and Senator Joe Manchin announced Wednesday that they had reached a sweeping deal that had eluded them for months on health, energy and climate issues, higher income and corporate taxes and cutting the federal debt.

For months, Mnuchin’s opposition had blocked a larger deal sought by President Joe Biden and other Democrats, in part on the grounds that it would fuel rather than fight inflation.

In a sharp announcement, he and fellow Democrat Schumer said the measure would raise $739 billion in revenue over 10 years, the biggest chunk coming from a 15 percent minimum corporate tax.

It will spend $369 billion on energy and climate initiatives and $64 billion to extend expiring federal subsidies for people who buy health insurance. That would leave more than $300 billion to reduce federal deficits over the decade.

The Senate will consider the sweeping package next week, said Schumer, DN.Y., and Manchin, DW.Va., who had negotiated for months and appeared deadlocked on anything but a much smaller measure.

The announcement suddenly presented President Joe Biden and Democrats with the prospect of pushing a major achievement through Congress ahead of congressional elections in November, in which Republicans appeared to have control of the House and possibly a majority of the Senate.

Unsurprisingly, Democrats called the measure the “Inflation Reduction Act of 2022.” Polls show that inflation, as embodied by gas prices that topped $5 a gallon before the easing, was voters’ top concern.

For months, Manchin’s opposition to the proposed, larger packages was based in part on his concern that it would fuel inflation.

Manchin’s resistance had long derailed broad legislation on the proposal’s issues.

Manchin, one of the most conservative Democrats in Congress, said just last week that he would only agree to much more limited legislation that would limit prescription drug costs and expand federal subsidies for health care costs.

He said he was open to considering a broader compromise on the environment and taxes after Congress returns from summer recess in September, an offer many Democrats have seen as dubious.

There was no immediate explanation why Manchin had suddenly agreed to the much broader package.

In December, his resistance derailed a sweeping $3.5 trillion, 10-year social and environmental bill that was Biden’s top domestic priority.

In his statement, Manchin said the new measure “will devote hundreds of billions of dollars to deficit reduction, adopting a tax policy that protects small businesses and working-class Americans while ensuring that big corporations and the ultra-wealthy pay the their share of taxes. .”

Copyright © 2022 by The Associated Press. All rights reserved.

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Sen. Joe Manchin says he has health, energy, tax deal with Senate Majority Leader Chuck Schumer Source link Sen. Joe Manchin says he has health, energy, tax deal with Senate Majority Leader Chuck Schumer

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