Democrats say they have finally reached a deal with U.S. Senator and centrist Democrat Kyrsten Sinema on a $430 billion climate and spending bill after facing multiple objections to key legislation.
Ms Sinema confirmed she had agreed to “move forward” on the bill, which covers drug pricing, energy, environment, health and tax measures, if Senate members allow her party to pass a budget settlement, which Democrats intend to do despite opposition from the Republican base .
Democrats, however, only lifted a shutdown called Collateral interest loopholewhich allows private investment fund partners tax its income as capital gainsaccording to the Tax Policy Center, is taxed less than income.
Senate Majority Leader Chuck Schumer said Thursday that the House of Representatives will meet on Saturday to vote on a motion that would pave the way for a House debate on the bill.
The bill, known as the Reducing Inflation Act, is key legislation for the Biden administration and Democrats to shape domestic policy ahead of the upcoming election battle for U.S. congressional leadership in November.
But the bill needs Ms. Sinema’s approval for a breakthrough because Democrats can’t risk losing the support of even a single lawmaker.
The Arizona senator is the only one who has yet to ratify her, as Joe Manchin of West Virginia struck a deal with top Democrats last week and declared his vote on the bill was “good for America.” Last year, he effectively crushed an earlier version of the legislation.
Another concern for Democrats is Covid-19. Senators can only vote in person, making it necessary for a full caucus of Mr. Schumer to be present and pass the bill in good health.
Mr. Schumer said he believed he now had the votes.
“The agreement preserves key elements of the Reducing Inflation Act, including lowering the cost of prescription drugs, tackling climate change, closing tax loopholes exploited by big corporations and the wealthy, and reducing the deficit by $300 billion,” he said.
The bill, which is likely to be introduced by Democrats in the House of Representatives next week, and its contents must be approved by members of Congress, who would allow it to move forward through a “reconciliation” process.
By doing so, Democrats can bypass the standard rule that requires 60 senators to agree to pass most legislation.
President Joe Biden hailed the bill as a key step in helping people save on prescription drugs and health insurance premiums.
“It will make our tax system fairer by making businesses pay the minimum tax,” he said on Thursday.
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