Democrats, Sinema reach deal on new taxes in Inflation Reduction Act

Source: Washington Post

Sen. Kyrsten Sinema (D-Ariz.) said she would “move forward” on a revised version of Senate Democrats’ health care, climate and deficit-reduction package, after party leaders agreed to scale back some of their original tax proposals.

The new approach — along with other changes to the proposal known as the Inflation Reduction Act of 2022 — satisfied Sinema’s chief concerns and helped set in motion a plan to approve it as soon as this weekend.

In a statement, Sinema said Democrats had “agreed to remove” a key tax targeting wealthy investors and had made changes to a second provision that aims to impose a new minimum tax on corporations that currently pay nothing to the U.S. government. From here, Sinema said she would await a final review from the chamber’s parliamentarian — a critical step in the process that allows Democrats to move their spending bill — at which point she would “move forward.”

The changes in total appear to have helped Democratic leaders thread a narrow needle, satisfying Sinema while still preserving the thrust of the deal that Senate Majority Leader Charles E. Schumer (D-N.Y.) worked out with another moderate — Sen. Joe Manchin III (D-W.Va.).

Read more: https://www.washingtonpost.com/us-policy/2022/08/04/inflation-reduction-act-sinema/

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