Key Democrat holdout Kyrsten Sinema agrees to pass Inflation Reduction Act

Democrats officially have the votes to pass a revamped version of President Biden’s Build Back Better agenda.

The last key holdout, Arizona senator Kyrsten Sinema (D), agreed to help pass the so-called Inflation Reduction Act on Thursday after some further negotiation, Fox News reported.

Dems have the votes for the Inflation Reduction Act

Sinema and Senator Joe Manchin (D), of West Virginia, were instrumental in sinking Build Back Better last year, which won both senators the lasting ire of Biden’s liberal base. Manchin had announced weeks ago that he wouldn’t help Biden pass a slimmed-down version of the bill, but then reversed course.

The news of Sinema’s support is a welcome change in fortunes for Democrats, who had been heading into the midterms virtually empty-handed and fearing that they might not ever pass Biden’s agenda.

The mainstay of the crudely titled Inflation Reduction Act is $369 billion in spending to fight climate change that Biden has touted as the most historic investment of its kind. That includes tax credits for electric cars that Biden has pushed aggressively on Americans paying record gas prices.

Biden has boldly asserted that not one middle-class American will pay a penny more in taxes after the bill, which allocates $433 billion in new spending and another $300 billion in “deficit reduction,” becomes law. The bill, he says, will pay for itself by making the wealthy “pay their fair share.”

Wall Street wins big

Despite that promise, Wall Street won a major concession in Sinema’s demand to preserve the so-called carried interest loophole, which allows hedge fund managers to pay less in taxes.

Sinema instead pushed for a one percent tax on stock buybacks, Fox reported.

“We have agreed to remove the carried interest tax provision, protect advanced manufacturing, and boost our clean energy economy in the Senate’s budget reconciliation legislation,” Sinema said. “Subject to the Parliamentarian’s review, I’ll move forward.”

Dems ready to barrel through

Democrats plan to pass the legislation along partisan lines through the filibuster-proof budget reconciliation process. They will take the first vote on Saturday.

“Tonight, we’ve taken another critical step toward reducing inflation and the cost of living for America’s families,” Biden claimed. “It will make our tax system more fair by making corporations pay a minimum tax. It will not raise taxes on those making less than $400,000, and it will reduce the deficit.”

Despite Biden’s assertions, a report from a non-partisan group, the Joint Committee on Taxation, found that $80 billion in new funding Biden wants to give the IRS would mostly go toward targeting middle-class business owners making less than $200,000 per year.

Share on facebook
Share To Facebook

Welcome to our comments section. We want to hear from you!

Any comments with profanity, advocacy of violence, harassment, personally identifiable information or other violations will be removed. If you feel your comment has been removed in error please contact us!

Latest Posts