Democrats say they've reached agreement on economic package

Senate Majority Leader Chuck Schumer, D-N.Y., said lawmakers had achieved a compromise “that I believe will receive the support” of all Democrats in the chamber.

Associated Press

Aug 5, 2022, 1:41 AM

Updated 722 days ago

Share:

Democrats say they've reached agreement on economic package
Senate Democrats have reached an accord on eleventh-hour changes to their top-priority economic legislation, they announced late Thursday, clearing a major hurdle to moving the measure through the chamber in coming days.
Sen. Kyrsten Sinema, D-Ariz., a centrist who was seen as the pivotal vote, said in a statement that she had agreed to changes in the measure's tax and energy provisions and was ready to “move forward” on the bill.
Senate Majority Leader Chuck Schumer, D-N.Y., said lawmakers had achieved a compromise “that I believe will receive the support” of all Democrats in the chamber. His party needs unanimity to move the measure through the 50-50 Senate, along with Vice President Kamala Harris' tie-breaking vote.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
WASHINGTON (AP) - Democrats considered reshaping proposed taxes on the wealthy and huge corporations, and possibly adding billions for the West's historic drought, as lawmakers aimed for initial votes Saturday on the party's economic legislation.
Senate Majority Leader Chuck Schumer, D-N.Y., announced his timetable Thursday as party leaders worked behind the scenes in hopes of winning the unanimity they will need to succeed.
The election-year bill, housing President Joe Biden's and congressional Democrats' top priorities, would provide hundreds of billions in spending and tax credits to spur clean energy, reinforce fossil fuels and renew government support for people buying private health insurance. It would raise revenue with tax boosts, beefed up IRS tax collections and curbs on drug prices, which would save money for the government and patients.
“We prioritize the middle class and working families, instead of those at the very top. God bless them, they’re doing fine,” Schumer said.
Democrats need to nail down support from all their lawmakers to prevail in the 50-50 Senate and avoid a glaring self-inflicted defeat, similar to one they suffered last November on a far larger version of the package. Republicans are on track to oppose the legislation as one, saying its tax boosts and spending would worsen inflation and damage the economy.
“What do Democrats want to do with all the money they want to drain out of Americans’ pockets in the midst of a recession?” said Senate Minority Leader Mitch McConnell, R-Ky. “They want to lavish hundreds of billions of dollars on an issue that exactly 3% of the country says is our biggest problem: far-left environmental and climate spending."
Sen. Kyrsten Sinema, D-Ariz., a mercurial centrist, has not made her stance clear and is considered her party's sole potential holdout.
She's among a group of Western senators seeking to add around $5 billion to the legislation - billed as Congress' biggest-ever climate change measure - to help their states cope with epic drought and wildfires. The effort was described by a Democrat familiar with the talks who would speak only on condition of anonymity.
Sinema has also expressed interest in reshaping the measure's 15% minimum tax on some companies with income exceeding $1 billion, said another Democrat who was not authorized to describe the senator's view publicly. They provided no detail. The proposed tax would raise an estimated $313 billion over a decade, the legislation's largest revenue raiser.
In defense of that proposal, Senate Finance Committee Chairman Ron Wyden, D-Ore., released figures showing that between 100 to 125 corporations that reported income averaging $8.9 billion paid effective tax rates averaging 1.1%. The numbers were compiled by Congress' nonpartisan Joint Committee on Taxation.
Sinema has been a critic of another proposal to raise taxes on executives of hedge funds and other private equity firms. It would raise $13 billion, a small portion of the bill, and is a favorite of progressives and Sen. Joe Manchin, D-W.Va., a conservative Democrat who helped write the overall legislation with Schumer.
The Senate won't be in session Friday as Democrats continue their talks. That pause will also provide time for the Senate parliamentarian, Elizabeth MacDonough, to decide if any of the bill's provisions violate the chamber’s rules and should be removed.
Republicans want to kill as much of the bill as possible, either with MacDonough's rulings or with nonstop votes expected to last well into Sunday or beyond.
Even if GOP amendments are defeated, they will consider it mission accomplished if they force Democrats to take risky, campaign season votes on touchy issues like taxes, inflation and immigration.
Vice President Kamala Harris can vote to break a 50-50 tie and approve the bill.


More from News 12
0:32
Police arrest man in connection to shooting murders in Clinton Hill

Police arrest man in connection to shooting murders in Clinton Hill

1:40
Nearly 300 probationary firefighters join the ranks of FDNY

Nearly 300 probationary firefighters join the ranks of FDNY

1:46
Sunny and warm weather with lower humidity for the weekend in Brooklyn

Sunny and warm weather with lower humidity for the weekend in Brooklyn

1:54
East Flatbush residents 'Occupy the Corner' for a safe summer

East Flatbush residents 'Occupy the Corner' for a safe summer

1:24
G train shutdown impacting Bed-Stuy commuters negatively

G train shutdown impacting Bed-Stuy commuters negatively

1:44
Gun detectors could arrive in NYC subway stations today as NYPD prepares pilot program

Gun detectors could arrive in NYC subway stations today as NYPD prepares pilot program

1:43
Welder Underground unveils ‘Rappin' Max Robot’ through apprenticeship program

Welder Underground unveils ‘Rappin' Max Robot’ through apprenticeship program

0:47
Attorney General James releases body camera footage of fatal officer-involved shooting in East Flatbush

Attorney General James releases body camera footage of fatal officer-involved shooting in East Flatbush

0:24
Police: Suspect wanted for punching 72-year-old man at 25th Street subway station

Police: Suspect wanted for punching 72-year-old man at 25th Street subway station

1:54
Boar’s Head deli meat recalled for potential listeria contamination

Boar’s Head deli meat recalled for potential listeria contamination

1:44
The Real Deal: How to save on expenses amid rising costs in New York

The Real Deal: How to save on expenses amid rising costs in New York

1:36
Students set to receive OMNY cards with more rides and less restrictions

Students set to receive OMNY cards with more rides and less restrictions

1:31
Tenants in Flatbush building say they are living with broken floors, mold, leaks and holes

Tenants in Flatbush building say they are living with broken floors, mold, leaks and holes

1:41
Neighbors describe MTA bus crashing into Burger King in Kensington

Neighbors describe MTA bus crashing into Burger King in Kensington

1:46
YMCA promotes swim safety services on World Drowning Prevention Day

YMCA promotes swim safety services on World Drowning Prevention Day

0:37
Brooklyn DA: Former teacher accused of enticing teenagers to send him explicit images

Brooklyn DA: Former teacher accused of enticing teenagers to send him explicit images

1:14
New lawsuits filed against Gov. Hochul's congestion pricing plan pause

New lawsuits filed against Gov. Hochul's congestion pricing plan pause

1:35
Rally outside Brooklyn Public Library calls for end to alleged 'power grab' from Mayor Adams

Rally outside Brooklyn Public Library calls for end to alleged 'power grab' from Mayor Adams

1:55
Residents say rats are taking over Sheepshead Bay street

Residents say rats are taking over Sheepshead Bay street

0:29
Southwest breaks 50-year tradition and will assign seats; profit falls at Southwest, American

Southwest breaks 50-year tradition and will assign seats; profit falls at Southwest, American