WASHINGTON — Sen. Joe Manchin and Majority Leader Chuck Schumer stuck a deal on a tax and energy policy bill, breaking a deadlock on the Democrats’ long-sought legislation to enact major parts of President Joe Biden’s agenda.
The plan announced by the two Democrats would raise an estimated $739 billion in revenue, spend $433 billion and reduce deficits by $300 billion.
Revenue would come from the 15% corporate minimum tax, drug price cuts from allowing Medicare to negotiate drug prices, and from increased tax enforcement by boosting the IRS budget. It would raise $14 billion from taxing carried interest at a higher rate.
The agreement would provide $369 billion for “energy and climate change” according to a one-page summary. Subsidies for Obamacare premiums would be extended for three years.
The deal represents a partial reversal of Manchin’s position earlier this month when he told Schumer he couldn’t support of package of climate change measure and tax increases because of rising consumer prices after inflation hit 9.1%.
The agreement was announced after the Federal Reserve announced another 75 basis point hike in interest rates and after the Senate approved a $52 billion semiconductor industry subsidy bill. which Senate Republican Leader Mitch McConnell had only allowed to go forward after Manchin said he would block tax increases.
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