Joe Manchin’s “DEAL” With Chuck Schumer May Fall Apart After All
(RightWing.org) – On Wednesday, July 27, Sen. Joe Manchin (D-WV) shocked America and the Democratic Party once again. After Senate Republicans helped pass a $280 billion bill regarding computer chip manufacturing, Manchin and Sen. Majority Leader Chuck Schumer (D-NY) announced that they agreed on President Joe Biden’s slimmed-down Build Back Better proposal. Democrats renamed it the Inflation Reduction Act of 2022. Still, there are more questions than answers about what they will include in the $740 billion reconciliation deal.
What is known could be problematic for Democrats. There’s no guarantee that Sen. Kyrsten Sinema (D-AZ) is on board with the deal, and at least one part of it has run into trouble with her in the past.
Could the New Deal Collapse?
For a year, Manchin argued that he couldn’t support a substantial multi-trillion dollar Democratic go-it-alone package. He cited inflation as the root reason and claimed the government injected too much money into the economy, helping push up rising prices. In June, inflation hit another 40-year high at 9.1%. Earlier this week, the Federal Reserve increased interest rates by three-quarters of a point, and new data reveals the US is in a technical recession.
So, when news of the agreement broke in the hallways of Congress, Democrats were shocked and elated. Just two weeks ago, Manchin was still bucking the plan. Here’s what Democrats have announced.
The deal includes:
- $369B towards energy and climate change provisions
- $300B towards the federal deficit
- $288B for prescription drug reform
- $124B for IRS tax enforcement
- $64B for an extension to the Affordable Care Act
- 15% minimum corporate tax (up from the current 11%)
- Closing the carried interest tax loophole
While Democrats express glee and optimism, Sen. Sinema hasn’t said if she’ll deliver for them or not.
Will Sinema Kill the Reconciliation Package?
On Wednesday, Schumer said he would send details to the Senate parliamentarian immediately to gain approval for Democrats to pass the bill with 50 partisan votes. In the evenly divided Senate, the only way for the Left to pass its agenda without 10 Republicans is through the budget process, but it is stringent.
Regardless, Sinema’s office said she hadn’t reviewed the legislation, and no decision was made about her leanings. In October, The New York Times reported the Arizona senator privately acknowledged to Democratic leaders she would not support tax increases on corporations. Still, in December, she said she would consider an increase to 15%.
The main sticking point could be the carried interest tax loophole. Manchin insists he will vote against any deal that does not close it, while Sinema has been steadfast in the past that she won’t support closing it.
On Thursday, Sinema was shockingly not in attendance during a Democratic caucus meeting regarding the Manchin-Schumer agreement. Sinema’s silence is stressing out Democrats. Still, those close to her say she won’t comment until she sees the specific language in writing and the parliamentarian determines what can go in the legislation and what cannot.
Schumer hopes to have the bill on the floor for a vote on Wednesday, August 3. Sinema may not say a word until then. In the meantime, America waits to learn if Democrats will spend massive amounts of more money again.
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