Sen. Joe Manchin (DW.Va.) and Senate Majority Leader Chuck Schumer struck an unexpected deal Wednesday on a bill that includes energy, health care and tax policy, potentially advancing the agenda blocked from their party before the November mid-terms.
The deal, dubbed the “Cut Inflation Act of 2022,” would “fight inflation, invest in domestic energy generation and manufacturing, and reduce carbon emissions by about 40% by 2030,” Manchin and Schumer said in a statement. Democrats said the legislation, which they say would cut the deficit by $300 billion, will be introduced in the Senate next week.
Here are the contents of the agreement, with estimates from the Joint Committee on Taxation and the Congressional Budget Office:
Total raised: $739 billion
$313 billion — The legislation will increase revenue in part by imposing a minimum corporate tax of 15%.
$288 billion — The agreement provides for prescription drug pricing reform, which will allow Medicare to negotiate drug prices. Reimbursable expenses will be capped at $2,000, the agreement summary says.
$124 billion — These revenues will be collected through the application of Internal Revenue Service taxes.
$14 billion — Both senators said the bill would raise these funds by closing the interest-carrying loophole. In the agreement, they note that there will be no new taxes imposed on families earning $400,000 or less and that they force “biggest corporations and the ultra-rich to pay their fair share.”
Total investments: $433 billion
$369 billion – The legislation would contribute this amount in energy and climate provisions, which Manchin and Schumer say would “invest in domestic energy production and manufacturing and reduce carbon emissions by approximately 40% d ‘by 2030’.
$64 billion – The remaining investment is the estimated cost of three years of Affordable Care Act premium subsidies – an increase from the two-year extension Manchin originally agreed to.