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Manchin and Schumer Agree on 15% Corporate Minimum Tax, Climate, and Healthcare

Senator Manchin finally agreed to a stripped down reconciliation bill that will give Progressives some of what they wanted.
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Manchin and Schumer agree to a deal, some details nebulous. Image from Tweet below.

Manchin and Schumer agree to a deal, some details nebulous. Image from Tweet below.

Inflation Reduction Act of 2022

Please note Manchin, Schumer Agree on $430 Billion Tax, Drugs, Energy Bill

The bill includes $430 billion in new spending on energy and health insurance investments, and more than pays for itself by raising minimum taxes for big companies and enforcing existing tax laws, Schumer and Manchin said in a statement.

The measure is substantially smaller than the multi-trillion-dollar spending bill Democrats had envisioned last year. 

Manchin and Schumer in a statement said the bill would reduce the nation's deficit by about $300 billion, lower carbon emissions by about 40% by the year 2030 and allow the government's Medicare health plan to negotiate prescription drug prices. But they did not provide specifics.

Republicans were quick to criticize the move. "I can’t believe that Senator Manchin is agreeing to a massive tax increase in the name of climate change when our economy is in a recession," Senator Lindsey Graham said.

McConnell also criticized the bill, saying it would "kill many thousands of American jobs."

A one-page summary shows the bill will generate $739 billion in revenue from a 15% corporate minimum tax, prescription drug savings, and added IRS enforcement.

Major Reversal

Carried Interest Loophole Closed

No Energy or Medicare Specifics

Ominous Name

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It's hard to comment, especially on the energy and Medicare aspects, due to lack of specifics. However, the name "Inflation Reduction Act of 2022" is ominous. Congressional bills often do the opposite of what their title suggests.

A 15% minimum corporate tax will be recessionary, especially profit recessionary, unless corporations respond by raising prices.

The guaranteed inflationary aspect is the pledge to lower carbon emissions by about 40% by the year 2030.

Color me extremely skeptical about the net impact impact of this bill reducing inflation. 

Given that Democrats wanted to spend several trillion on Build Back Better, perhaps this result may be considered a victory. 

This post originated at MishTalk.Com.

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