After negotiations with Chuck Schumer and Joe Manchin, Arizona Democratic Senator Kyrsten Sinema has signaled she would vote to proceed with the Inflation Reduction Act if the Senate Parliamentarian rules the legislation, with the provisions contained in the text, can proceed through the reconciliation process.
- The removal of the carried interest provision which was priced at $14 billion.
- An exemption for qualifying American Manufacturers from the new minimum Corporate Tax Rate which calculates at approximately $40 billion.
- The inclusion of a one percent excise tax on stock buybacks that could generate $73 billion in new revenues.
- The insertion of five billion dollars toward drought resiliency.
- Provisions to reduce the costs of insulin would be included in the Prescription Drug component of the legislation. This was an addition championed by Georgia Senator Raphael Warnock.
In a short statement following the deal, Senator Sinema relayed:
“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. Subject to the Parliamentarian’s review, I’ll move forward.”
Senate Majority Leader Chuck Schumer, who had scheduled to start the voting procedures on the Inflation Reduction Act on Saturday, offered:
“I am pleased to report that we have reached an agreement on the Inflation Reduction Act that I believe will receive the support of the entire Senate Democratic conference. The final version of the Reconciliation bill, to be introduced on Saturday, will reflect this work and put us one step closer to enacting this historic legislation into law.”
Upon hearing the news of the deal with Senator Sinema, President Biden issued a statement through the White House Press Office which read:
“Tonight, we’ve taken another critical step toward reducing inflation and the cost of living for America’s families. The Inflation Reduction Act will help Americans save money on prescription drugs, health premiums, and much more. 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. It also makes the largest investment in history in combatting climate change and increasing energy security, creating jobs here in the US, and saving people money on their energy costs. I look forward to the Senate taking up this legislation and passing it as soon as possible.”