August 17, 2022

Democrats said they finally reached an agreement with US Senator and centrist Kirsten Senema on a major climate bill and $430 billion spending after facing several objections to the important legislation.

Ms Senema confirmed that she agreed to “move forward” with the bill, which covers drug pricing, energy, environment, health and tax measures, on the condition that the senator gives the green light for her party to pass it through the budget reconciliation, which was approved by Democrats. Intend to do despite the objections of the Republican camp.

However, Democrats can only conclude the agreement with Ms. Senema after they have repealed a provision closing what is known as Bear interest loopholewhich allows partners in private investment funds Their income is taxed as capital gainsat a rate lower than income, according to the Tax Policy Center.

Senate Majority Leader Chuck Schumer said Thursday that the chamber will meet on Saturday to vote on a proposal, paving the way for the bill to be discussed in the House.

The bill, known as the Inflation Reduction Act, is pivotal legislation for the Biden administration and Democrats’ domestic policies ahead of the upcoming November election battle for leadership of the US Congress.

But the bill needed Cinema’s approval to achieve a breakthrough as Democrats could not risk losing support from even one lawmaker.

The Arizona senator was the only one yet to give it a pass, as West Virginia’s Joe Manchin struck a deal with top Democrats last week and declared his vote on the bill “great for America.” He effectively crushed an earlier version of the legislation last year.

Another concern for Democrats is Covid-19. Senators can only vote in person, making full caucuses and Schumer present and in good health to pass the bill.

Schumer said he thinks he has the votes now.

“The agreement preserves key components of the inflation-reduction law, including lowering drug costs, combating climate change, closing tax loopholes exploited by big corporations and the wealthy, and reducing the deficit by $300 billion,” he said.

Democrats are likely to submit the bill for passage next week, the parliamentarian must approve the bill and its contents, which will allow him to move forward with the “reconciliation” process.

By doing so, Democrats could bypass the benchmark of needing 60 senators to agree to clear most legislation.

President Joe Biden hailed the bill as a critical step to help people save money on prescription drugs and health premiums.

“It will make our tax system fairer by making companies pay minimum taxes,” he said Thursday.

Additional reporting by agencies

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