Kyrsten Sinema now supports it. Can the law on reducing inflation pass?

More than a year after negotiations on the legislation began, the Senate Democrats have finally joined all 50 of their members for a budget reconciliation bill that will fund many of President Joe Biden’s key priorities and give them political victories. on climate and health care ahead of the midterm elections.

On Thursday, Senator Kyrsten Sinema (D-AZ) announced that she would support the latest iteration of the legislation, known as the Reduction of Inflation Act, paving the way for approval this weekend. Sinema, who has long resisted the bill, was the last lawmaker Democrats needed to board the Senate after Senator Joe Manchin (D-WV) said he was willing to move forward.

The legislation is now on track for a final vote this weekend, though it still has a few other hurdles to overcome before the Senate can pass it. The bill is still under consideration by the Senate lawmaker, an expert on non-partisan rules who will determine whether the bill’s policies qualify for the reconciliation process that the Democrats want to use. This process allows them to pass legislation with just 51 votes and no Republican support. If there are no major hitches, senators will have to endure a lengthy debate and amendment process known as a copper ballot, when any senator can propose additions to the bill and force others to take awkward votes.

“Subject to the parliamentary review, I will move forward,” Sinema said in his statement on Thursday.

What’s in the bill

While this legislation is only a small part of what the Democrats initially proposed when they initiated this process, it still includes substantial investments in the climate, as well as important health and tax proposals. Overall, it is expected to include more than $ 400 billion in spending and bring in over $ 700 billion in revenue, resulting in a $ 300 billion deficit reduction.

Sinema’s support for the bill came with some constraints. She said in her statement of support that the legislation will no longer close the interest tax loophole, a change she has long opposed and which would tax money managers’ income at the same rate as other income. This provision has been replaced with a 1% excise tax on share repurchases, which should offset the revenue from the provision for carried over interest.

The bill now contains provisions on:

  • health care, including allowing Medicare to negotiate prescription drug prices and extending ACA benefits for an additional three years.
  • taxes including a new minimum corporate tax of 15 percent, IRS enforcement funding, and a new 1 percent excise tax on share buybacks.
  • climate including clean energy tax credits, grants for environmental justice, and drought resilience funding.

Vox staff have an exhaustive look at how everyone will work here.

What’s next

Democrats are expected to receive an update from the Senate MP on Friday, who could decide whether aspects of the prescription drug provisions qualify for the bill. After obtaining this judgment, lawmakers can then cancel and finalize the bill and eliminate any policies that do not pass the appeal. In general, policies must have a clear impact on taxation and spending to be eligible for a budget reconciliation bill. Recall that the MP had previously ruled that the $ 15 minimum wage could not be approved through reconciliation because it did not have a significant enough impact on the federal budget.

After the Democrats have settled on a final version with the MP’s approval, they can then begin the voting process. On Saturday they will first take a procedural vote that will kick off 20 hours of debate on the bill, then they will hold a process known as a rama vote, when any senator can suggest amendments to the legislation. Republicans are widely expected to use these amendments to put Democrats in place: last year, for example, they forced Democrats to vote on issues the party is divided into, such as packing for the Supreme Court.

Once the coppersmith vote is complete, lawmakers can then move on to final approval of the bill, which could arrive as early as Sunday. After the Senate passes the legislation, he heads to the House, which is expected to break the August recess to vote on it later this month.

Democrats also need most of their members aboard in the lower house, where they could soon drop to a four-vote margin. So far, some of the moderate members who previously opposed the bill if it did not include the reinstatement of the local and state income tax (SALT) deduction, have signaled that they are still willing to support the legislation, a sign that it is likely. than having the support you need to get through. Furthermore, even progressive members, who in the past rejected reduced policies, have broadly expressed their support.

“When they send it to us, we will pass it on,” House Speaker Nancy Pelosi said at a press conference last week.