Democrats Will Push Forward with Partisan Tax and Spending Bill’

Democrats Will Push Forward with Partisan Tax and Spending Bill’

By U.S. Senate Photographic Studio/Jeff McEvoy – Chuck Schumer

 

For the Democrats to succeed, progressive wings of the party will have to agree to support a bill barely different from ambitious “Build Back Better” legislation passed in the House and the Senate, requiring roughly $2 trillion in new taxes and spending over the next decade.

 

Passing this bill, however, will remain an uphill battle, given Democrat’s thin majorities in both the House and the Senate, and given a process called budget reconciliation requiring them to pass it before Sept. 30. Passing the bill will remain a tall order, though, given the Democratic majorities in both the House and the Senate. Given the process called budget reconciliation requires they get it passed before Sept. 30.

Republicans are demanding the House mostly accept the Senate’s version of a China trade bill, which they say is already a bipartisan compromise. Schumer, Senate Minority Leader Mitch McConnell (R-Ky.), House Speaker Nancy Pelosi (D-Calif.), and House Minority Leader Kevin McCarthy met two weeks ago to discuss legislation.

Senate Majority Leader Chuck Schumer, R-New York, has sent portions of the so-called reconciliation bill to the Senate parliamentarian for his consideration, according to reports by Punchbowl News and Politico. In leaked messages Wednesday to buyers, it said that Senate Majority Leader Chuck Schumer was responding publicly to a statement by Senate Republican Minority Leader Mitch McConnell, that he was pulling help from the bill, which is intended to boost semiconductor manufacturing at home if Democrats go forward with reconciliation.

Arizona Democratic Kyrsten Sinema has been broadly supportive of a reconciliation budget bill, but only after she opposed reducing the bill from $3.5 trillion to $2 trillion and replacing the tax rate increases with other revenue-raisers. Schumer added that the only way to address inflation is through reconciliation because no Republicans are prepared to increase taxes.

The parliamentarian must review legislation that is being advanced under a process called budget reconciliation, which enables the Senate to pass a budget-related bill with a simple majority rather than the 60 votes required normally.

The Senate parliamentarian gets the final say on whether any particular provision has a direct impact on the federal budget and can therefore be included in a reconciliation bill.

“The public nature of this announcement from Schumer is material,” according to Henrietta Treyz, director of economic policy at Veda partners.    “msn.com

People familiar with Sen. Joe Manchin’s thinking said that he has made his demands repeatedly in public, but that he is not likely to put pen to paper and write reconciliation legislation which is a Democratic leader’s job.

Senator Joe Manchin has also taken a leading role leading a bipartisan conversation about energy over the last two weeks, raising concerns among Democrats that he is losing interest in party-line bills that would implement more comprehensive climate policies.

Manchin has expressed interest in passing the legislation through a non-filibuster reconciliation process, which would increase taxes, reduce the deficit, lower prescription drug costs, and fund energy and climate measures, though some Democrats worry it is running out of time.

The bill will likely ultimately raise more money than it costs, a structure designed to reassure moderate Democrats like West Virginia Sen. Joe Manchin, who sees reducing deficits as a tool for fighting inflation. The bill will likely end up raising more money than it costs, a framework designed to appease moderate Democrats such as West Virginia Senator Joe Manchin, who views deficit reduction as a tool to combat inflation. Senate Majority Whip John Cornyn (R-Texas) said Democrats are grasping at straws.

Even if Democrats actually do craft a bill that meets his demands, one concern is that Sen. Kyrsten Sinema, D-Ariz., is opposed to raising taxes on the wealthy and corporations that Manchin has called for. Some Democrats are optimistic his demands can be moved to the party-line bill, or any bipartisan negotiations would end in the individual lanes over a narrower set of issues. To get to 60 votes on the gun bill, Democrats will need solidarity from their own party and from the 10 Republicans, not just the few Senate Republicans.

Either way, the president is going to absolutely have a mandate, as is his mandate–the mandate, you know–the mandate that is given to the Cabinet, to continue to directly engage members of Congress and leaders in order to keep moving forward with this agenda. Biden is going to have those discussions with Democratic leadership.

God Bless the United States, God Bless the Veterans

 

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