The Senate is set to take up a $300 billion budget reconciliation package next week. Majority Leader Charles E. Schumer and Sen. Joe Manchin III have reached an agreement on the tax hike and climate change bill. While Manchin previously said he would wait until the July inflation data is released before supporting the legislation, he has changed his tune. It’s unclear if he will vote for the tax increase or the climate change bill.
The Senate’s climate change bill includes an ambitious plan to cut carbon emissions by 40% by 2030, create jobs, and provide funding for clean energy. This plan is far less ambitious than the $3.5 trillion bill. However, the bill still contains a number of budget gimmicks and has the support of former Vice President Joe Biden. If passed, this bill will bring the United States closer to international commitments. Despite its flaws, the Senate will need to decide whether to approve the tax hike and climate change bill.
The climate change bill also contains provisions favoring the fossil fuel industry. Senator Manchin’s home state of West Virginia has a significant fossil fuel industry and it’s hard to imagine a bill with a more generous carbon reduction cap. Nevertheless, the bill has a long way to go before it’s passed. So, let’s review the latest developments in the bill and decide whether it’s worth passing it.
The bill contains many good things. The new tax credits will incentivize the production and use of renewable energy. It will also make green energy cheaper than fossil fuel plants. This is a positive step forward. In the end, we’ll see if it is enough to help the environment and keep us warm. There are no more excuses to delay action on the climate. The bill is a win-win for both the government and the American people.
The Senate bill also does not include the global tax deal. While there’s no guarantee that the bill will pass, Democrats are still hopeful that Democrats can get the votes they need to win the Senate. The Senate is split 50-50, and Vice President Kamala Harris could break a tie if necessary. Another key weakness in the bill is the lack of increased tax deductions for state and local taxes. Some Democrats in high-tax states have demanded this change. One of them is Rep. Josh Gottheimer.
The Senate’s tax hike and climate change bill is a mixed bag. While it will benefit the economy, many major corporations would be left without the money. As a result, the bill would likely result in higher taxes for large corporations and upper-income taxpayers. The bill would also increase the deficit by $300 billion+. But it’s still unclear how it will affect the American people and the environment. So far, many people are expressing their concerns.
Despite his reservations, Manchin has made it clear that he’s willing to support certain aspects of the climate bill. It would include provisions to lower prescription drug costs and to extend health insurance subsidies for millions of Americans. Moreover, the reconciliation bill would give Medicare the flexibility to negotiate drug prices, allowing it to offer affordable care to millions of Americans. If he can get the numbers right, the tax hike and climate change bill will likely pass, with some changes.