Democrats’ comprehensive economic plan to combat climate change, address health care costs, and increase taxes on large corporations was approved by the Senate on Sunday.
This is a significant victory for President Biden and his party as they seek to keep control of Congress in the November midterm elections.
The Inflation Reduction Act passed the upper chamber on a party-line vote of 51 to 50, with Vice President Kamala Harris casting the deciding vote in the Senate, which was evenly divided.
Democrats overcame unanimity among Republicans to pass the bill through a streamlined legislative procedure called reconciliation.
As senators prepared to vote for final passage, Senate Majority Leader Chuck Schumer remarked, “It’s been a long, rough and twisting path but at last, at last, we have arrived.”
“The Senate is making history today after working really hard for more than a year.
The Inflation Reduction Act, in my opinion, will remain one of the essential pieces of legislation in the twenty-first century.”
After a lengthy session that lasted all night and into Sunday afternoon, the members finally cast their votes, to the cheers of the Democrats.
Republicans proposed a plethora of amendments in a procedure known as a “vote-a-rama,” which Democrats successfully defeated after nearly 16 hours of debate.
A clause that would have limited the cost of insulin to $35 per month for people insured by private health insurance plans was successfully blocked by GOP senators.
Democrats required 60 votes to override the rules of reconciliation and maintain that portion of the package, but they were outnumbered 57 to 43, with seven Republicans joining the Democrats in favour.
The proposal, which is anticipated to pass, will be taken up on Friday when the lower chamber reconvenes after a month-long break, according to a statement from House Democratic leaders last week.
The package represents the conclusion of months of discussions about Mr. Biden’s domestic policy agenda, which for a while seemed to be on life support but was unexpectedly revived late last month with the announcement of an agreement between Schumer and Sen. Joe Manchin, a moderate Democrat from West Virginia.
Despite being far more constrained than the expansive $3.5 trillion proposal made by Mr. Biden last year, the limited package had the support of Manchin and Sen. Kyrsten Sinema, an important Democratic senator from Arizona.
Nevertheless, Democrats applaud the plan as their solution to lowering consumer prices and for making the largest-ever investment in combating climate change—nearly $400 billion.
The plan permits Medicare to bargain over the cost of prescription drugs, a major Democratic goal that is anticipated to save hundreds of billions of dollars over the following ten years.
The improved health insurance subsidies that were due to expire at the end of the year are also extended, and most firms with annual revenues over $1 billion are subject to a minimum tax of 15%.
As the senators got closer to casting their votes on Sunday, the corporate tax item became a source of debate.
Sinema, Jon Ossoff, Raphael Warnock, Catherine Cortez Masto, Maggie Hassan, Mark Kelly, and Jacky Rosen are the seven Democratic senators who voted with Republicans to support an amendment proposed by Republican Sen. John Thune of South Dakota that exempts some businesses with private equity backing from the 15 percent minimum corporate tax rate. This amendment was approved 57 to 43.
The proposal includes tax breaks for manufacturing solar and wind energy equipment as well as for purchasing electric cars.
In addition, $4 billion is allocated for drought relief, and consumers who purchase energy-efficient appliances are given incentives.
As the “boldest climate package” in American history, Schumer praised the legislation and referred to it as a “game-changer” and “turning point.”
It’s taken a while to get here, he remarked.
After being examined by Senate parliamentarian Elizbeth MacDonough, one component of the Democrats’ drug pricing plan—imposing fines on drug manufacturers that increased prices on private insurers above inflation—was eliminated.
But because she had approved the rest of the package, the upper chamber was now free to continue debating the legislation.
According to the Congressional Budget Office, the law will reduce the deficit by $102 billion over the following ten years.
Republicans, however, countered that the proposal would not significantly reduce inflation but rather boost taxes while also eliminating jobs.
Sen. Rick Scott, a Republican from Florida, argued in an appearance with “Face the Nation” on Sunday that the Democrats’ plan for prescription pricing will hurt seniors while the tax component will raise taxes on Americans.
“Why would you make government spending more expensive? Taxes are going up “said he.