Sinema Reaches Deal With Schumer, Paves the Way For Inflation Act to Pass

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Senator Kyrsten Sinema (D-AZ) has reached a deal with Senator Chuck Schumer (D-NY), paving the way for the Inflation Reduction Act of 2022 to pass in Congress.

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Earlier this week, it was reported Capitol Hill Democrats were scrambling for Senator Sinema's crucial vote on the bill following Senator Joe Manchin's (D-WV) surprising support in late July.

On Thursday, July 14, Senator Manchin and his staff dealt a "crushing blow" to Senate Majority Leader Schumer, 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.

Then, in a stunning reversal on Wednesday, July 27, Manchin confirmed he would take swift action and endorsed the Schumer-backed plan. This news surprised both Washington D.C. and political followers around the nation.

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The West Virginia Democrat, known for his centrist leanings, has been a notable holdout on his party’s domestic agenda.

Now, Senator Sinema, also known for being a fiscal centrist, has had her concerns with the Inflation Reduction Act satisfactorily addressed. One of the Arizona congresswoman's primary holdouts was the carried interest loophole.

The Hill reports that this new Sinema-Schumer "deal would remove a provision closing the so-called carried interest loophole."

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The outlet also shared a statement from the Senator, along with additional details about the purported deal:

“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,” Sinema said, signaling that she plans to vote to begin debate on the bill.

“Subject to the parliamentarian’s review, I’ll move forward,” she said.

A Democratic source familiar with the agreement said it would include a new excise tax on stock buybacks that would bring in more than enough revenue to cover the removal of the carried interest provision.

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Senator Schumer, for his part, said this deal "preserves the major components" of the bill, which is intended to reduce pharmaceutical drug costs, fight climate change, close tax loopholes, give extra funding to the IRS, and slash the national deficit.

The bill is reportedly set to go up for a vote on Saturday, August 6.

What do you think about Senator Sinema reaching a deal with Senator Schumer?

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