Inching Ever Closer

The US Senate is about to finish up their Vote-A-Rama thing, and they should be able to put the Inflation Reduction Act in Nancy Pelosi's capable hands pretty quickly.

Bits and pieces via NYT: (pay wall)

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Senator Kyrsten Sinema, Democrat of Arizona, announced on Thursday that she would support moving forward with her party’s climate, tax and health care package, clearing the way for a major piece of President Biden’s domestic agenda to move through the Senate this weekend.

To win Ms. Sinema’s backing, Democratic leaders agreed to drop a $14 billion tax increase on some wealthy hedge fund managers and private equity executives that she had opposed, to change the structure of a 15 percent minimum tax on corporations, and to include drought money to benefit Arizona.

For decades, as prescription drug costs soared, Democrats battled with the pharmaceutical industry in pursuit of an elusive goal: legislation that could drive down prices by allowing Medicare to negotiate directly with drug makers.

Now they are on the verge of passing a broad budget bill that would do just that.

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At the center of the climate and tax package that Democrats appear to be on the verge of passing is one of the most significant changes to the United States’ tax code in decades: a new corporate minimum tax that could reshape how the federal government collects revenue and alter how the most profitable companies invest in their businesses.

The proposal is one of the last remaining tax increases in the package that Democrats are aiming to pass along party lines. After months of intraparty disagreement over whether to raise taxes on the wealthy or roll back some of the 2017 Republican tax cuts to fund their agenda, they have settled on a longstanding political ambition to ensure that large and profitable companies pay more than $0 in federal taxes.

How the Deal Was Salvaged:

A frenzied and improbable effort by a tiny group of Democrats, carried out over 10 days and entirely in secret, succeeded in reviving the centerpiece of President Biden’s domestic policy plan.

Climate:

The bill would put the United States much closer to its goal of cutting global warming pollution in half by 2030.

Inflation:

The package, which includes tax increases, lower drug prices and other provisions aimed at reducing the federal budget deficit, could alleviate rapid price gains over time.

The Math of the Deal:

The legislation, which involves at least $260 billion in spending over 10 years and an even larger raise in taxes, has prompted Republican claims that the bill would be too expensive and represent a giant tax increase. But outside estimates found the bill to be fiscally responsible.

Sinema Will Support Bill:

Senator Kyrsten Sinema, Democrat of Arizona, her party’s last remaining holdout, said that she would support the package. To win Ms. Sinema’s support, Democrats agreed to drop a modest change to the so-called carried interest loophole, which allows wealthy hedge fund managers and private equity executives to pay lower tax rates than entry-level employees.

What's in it?

WaPo: (pay wall)