A number of concessions were needed to get Sinema, representative of the state of Arizona, along. For example, a $14 billion tax increase for wealthy investors has been scrapped. Financial support to combat the effects of drought, which will benefit dry Arizona, has just been added. Biden desperately needs the package, with more than $400 billion in spending, to deliver on his election promises.
The plan, the Inflation Reduction Act of 2022, includes large-scale tax breaks to stimulate the production of renewable electricity. Government subsidies should bring the costs of health care down. At the same time, the Biden administration wants to reduce the budget deficit by $300 billion, including tax increases for large companies.
To get the package through, Biden cannot lack the support of any Democratic senator. Republicans hold exactly half of the seats in the Senate, and they will vote against it no matter what. They denounce the tax increases and think the expenditure is far too large. Only if all Democrats vote in favour, Democratic Vice President Kamala Harris can cast the casting vote and pass the bill.
sleepers
In fact, Biden envisioned an even bigger package that would cost $3.5 trillion, the Build Back Better Act. But Sinema and her West Virginia colleague Joe Manchin lay down for that. When the two opposing Democrats also didn’t agree to a slimmed-down $2 trillion package, the issue threatened to lead to a major defeat for Biden. After all, he has promised his voters to take major steps in the field of climate and social inequality.
Two weeks ago, Manchin and Democratic leaders unexpectedly struck a deal, resulting in a further watered-down package. Now that Sinema seems satisfied after a few extra adjustments, the leader of the Democrats in the Senate, Chuck Schumer, expects to have enough votes. In recent days, he has had “many productive conversations” with fellow group members, he wrote in a statement.
Biden, who is struggling with historically poor popularity figures, could use a little success. Opinion polls indicate that Democrats will lose a majority in both the Senate and the House of Representatives in the midterm elections next November. The dissatisfaction is partly due to the sharply rising prices. It is therefore no coincidence that the new investment package refers to inflation reduction (inflation reduction).
As far as the president is concerned, the plan cannot be passed soon enough. “Accept this proposal. Make sure it ends up on my desk. Take it for the American people,” he said. He said the multi-billion dollar investment is “the largest investment in history to combat climate change” and will create more jobs and lower energy costs.
According to Schumer, the Senate can already vote on the new proposal this weekend, which will be published in its entirety on Saturday. Then the House of Representatives, where the Democrats are in the majority, could consider it next week.
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