Despite the "unanimous Republican opposition" reported by People Magazine, the United States Senate has passed Democrats' highly-publicized Inflation Reduction Act of 2022.
In late July and early August, it initially looked like two key centrist Democrats -- Senator Joe Manchin (D-WV) and Senator Kyrsten Sinema (D-AZ) -- would be holdouts on the sweeping bill, which addresses everything from climate change to healthcare costs, but both Senators' votes were eventually secured.
Sinema, in particular, had concerns about the carried interest loophole, which were officially addressed by Senate Majority Leader Chuck Schumer (D-NY) and his team late last week.
Bloomberg offered a roundup of winners and losers in the passing of the bill, which finally came up for a vote following over 18 months of "rocky negotiations" within the Democratic Party on Capitol Hill.
Per the financial outlet's assessment, the Inflation Reduction Act strongly favors wealthy Americans, private equity firms, electric car manufacturers, oil companies, and those on Medicare or using insurance from the Affordable Care Act marketplace.
Furthermore, the IRS received its much-touted $80 billion funding increase that was backed by three former IRS heads -- Fred Goldberg, who headed the agency under former President George H. W. Bush, President Bill Clinton's IRS head, Charles Rossotti, and John Koskinen, who led the IRS under the President Barack Obama administration.
Losers in the bill's passing include Republicans, pharmaceutical companies, tech companies, and the SALT Caucus -- the act does not include a provision to expand the $10,000 cap on the state and local tax deduction, a huge blow to residents of high-tax states in the Northeast and on the West Coast.
Furthermore, social programs, including an expanded version of the child tax credit, were cut from the final version of the Inflation Reduction Act of 2022.
The New York Times reported on Schumer's reaction:
“We’ve had an extraordinary six weeks,” Mr. Schumer said in an interview, calling the climate, health and tax measure “the most comprehensive piece of legislation affecting the American people in decades.”
Are you glad the Inflation Reduction Act passed the Senate?
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