On Thursday, July 14, Senator Charles Manchin (D-WV) and his staff dealt a "crushing blow" to Senate Majority Leader Chuck Schumer (D-NY), with the former saying he was only willing to support a reconciliation bill in August if it includes a provision to lower prescription drug prices and a two-year extension of Affordable Care Act subsidies.
At the time earlier this month, this news came via a Democrat who was briefed on the conversation. According to a Fox News report:
Manchin was explicit that he won't support a bill before the midterms with any provisions on energy and climate or closing tax loopholes exploited by the wealthy and biggest corporations, despite his support for those specific things during months of negotiations.
Dems and the President Biden administration had been hoping to pass a sweeping tax and climate plan ahead of November's midterm elections.
Then, in a stunning reversal on Wednesday, July 27, Manchin confirmed he would take swift action and endorsed the Schumer-backed plan. This shocked both Capitol Hill and political news followers across the United States.
The West Virginia Democrat, known for his moderate leanings, has been a notable holdout on his party’s domestic agenda.
Intriguingly, the Senator now cites a reduction in inflation as one of his reasons for supporting the plan -- earlier this month, concern that the package would not have an impact on historic inflation levels across the United States was among Manchin's reasons for opposing the plan.
Now, new details about the surprise Manchin-Schumer plan have emerged -- and there's good news for Americans who make under $400,000 a year.
Business Insider shared that the Inflation Reduction Act of 2022 "states that it would steer clear of raising taxes for anyone with less than $400,000 annual taxable income. Instead, the plan is to revamp corporate tax and enforce a hard limit on how much big corporations can lower their taxes, which lawmakers predict will generate $313 billion for the US."
If passed, the proposed Congressional bill would impose a minimum corporate tax limit of 15% on corporations that make $1 billion or more in annual profits.
Under the current tax code, companies are required to pay 21% corporate tax, but around 200 of the largest American organizations use tax loopholes to pay well under 15%.
What do you think about the shock move by Senators Manchin and Schumer?