Senate Democrats remained on track to Saturday to pass a $433 billion taxes, healthcare and climate-change package — all while the party suffered a blow to a key portion of the bill’s prescription drug reform plan.
Democrats survived the vetting of the Medicare portions of the Inflation Reduction Act — which also includes the largest climate investment in US history. But they lost key ground on parts penalizing drug companies for hiking prices on people with private health insurance.
“This is a major victory for the American people,” Senate Majority Leader Chuck Schumer (D-New York) said in a statement. “While there was one unfortunate ruling … the overall program remains intact, and we are one step closer to finally taking on Big Pharma and lowering Rx drug prices for millions of Americans.”
Schumer’s announcement took some wind out of the party’s signature domestic policy bill, which was slated for a key procedural vote to allow debate Saturday evening while pols braced for pulling an all-nighter into early Sunday to potentially pass the legislation. Each party has 10 hours to debate any aspect of the 755-page bill.
Once the bill passes in the Senate, it needs approval by the House of Representatives before President Biden could sign it into law.
In a ruling Saturday morning, Senate parliamentarian Elizabeth MacDonough signed off on the Medicare-related drug-pricing plan, but nixed the portion penalizing drug companies for raising prices for millions of Americans with private insurance policies.
Democrats had wanted the measure to apply to both Medicare and private insurance; MacDonough ruled the bill’s inflation cap could only apply to Medicare.
As the Senate’s nonpartisan referee, MacDonough decides what provisions are eligible to avoid a Republican filibuster.
Nina Schaefer, director for the Center for Health and Welfare at The Heritage Foundation, said she believes Senate Democrats are trying to expand Obamacare subsidies “to everyone, which puts [the country] a path to a single payer.”
“Medicare already negotiates for prescription drug pricing. It’s done through the private sector,” she said. “There is no need for the government to interfere here unless their plan is to set prices and ration care [for] seniors’ drugs.
“They are propping up an Obamacare expansion on the backs of seniors.”
Some Democratic senators said they’d be voting “no” on any amendments introduced this weekend during the so-called “vote-a-rama” session, which allows pols from both parties to offer unlimited amendments to final versions of bills after debate has closed. They insisted their motivation is keeping the party’s bill on course to pass.
“We have a deal to take the biggest climate action in U.S. history. Every Senate Dem has agreed to it. I can think of lots of ways to strengthen it, but I won’t derail this bill by supporting changes. I will vote NO on all amendments – even for stuff I like. Let’s finish the job,” Sen. Brian Schaltz (D-Hawaii) tweeted Saturday.
“I agree with Brian. I’ll be voting NO on all amendments — regardless of policy,” responded Sen. Alex Padilla (D-Calif.) while quote-tweeting Schatz. “Let’s stay united and get this historic bill done.”
For months, Senate Democrats have worked to craft a bill that would attract the support of all 50 of the party’s members in the 100-member Senate before a final deal was reached days ago.
Republicans have vowed to make the process painful, forcing Democrats into potentially embarrassing votes ahead of tough midterm elections in November.
“What will vote-a-rama be like? It will be like hell,” Sen. Lindsey Graham (R-South Carolina), said in a press conference Thursday, Fox News reported. “They deserve this.”
The Democrat’s far-left flank may also be planning to push more progressive policies.
Sen Bernie Sanders (I-Vermont) said he plans to offer a number of politically perilous left-wing goodies — including lowering the age of Medicare eligibility to 60.
Though he won’t stand in the way of overall passage, Sanders has said the current version of the bill “does virtually nothing to address the enormous crises that working families all across this country are facing today,” The Hill reported.
The lion’s share of proposed new spending, $369 billion, would go toward a raft of energy and climate provisions, including $62 billion to support manufacturing of solar panels, wind turbines, batteries, electric cars and process critical minerals.
The legislation also lists taxpayers spending $60 billion for “environmental justice” — including projects in “disadvantaged communities” — $30 billion for green-energy projects by states and electric utilities, and $20 billion to support “climate-smart agriculture practices.”
Americans looking to purchase a new electric car would receive a $7,500 tax credit and a $4,000 credit for used models.
Among the bill’s revenue generators are a 15% corporate minimum tax, prescription drug price reform and stepped up IRS enforcement.
Rep. Nicole Malliotakis (R-NY) tweeted Saturday, “We need more border patrol agents not IRS agents. Pass it on.”
PREDICTED TOTAL REVENUE: roughly $764 billion
Setting 15% Corporate Minimum Tax — $258 billion
Prescription Drug Price Reform — $288 billion
— Allows Medicare to negotiate prices, caps out-of-pocket costs at $2,000
Increased IRS Tax Enforcement — $125 billion
— Dependent on $80 billion expenditure across 10 years to reach net revenue
New stock buyback tax — $73 billion
— 1% excise tax on corporate stocks buybacks, proposed by Sen. Kyrsten Sinema
Fee on methane leaks — $20 billion
PREDICTED TOTAL SPENDING: $433 billion
Energy and Climate Provisions: $369 billion
–$7.5K tax credits for buyers of new electric vehicles, $4K for used models
–$62 billion to support manufacturing of solar panels, wind turbines, batteries, electric cars and process critical minerals
–$60 billion for ‘environmental justice’ including projects in ‘disadvantaged communities’
–$30 billion green-energy projects by states and electric utilities
–$27 billion for ‘clean energy technology accelerator’ to reduce emissions
–$20 billion to support ‘climate-smart agriculture practices’
–$10 billion in low-income home energy rebates and grants for affordable housing retrofits
–$9 billion for federal clean-energy purchases, including $3 billion for USPS electric vehicles
–$7.6 billion in grants to support forest conservation, plant trees and restore coastlines
Healthcare Provisions: $64 billion
–Extension of COVID-era Affordable Care Act subsidies through 2025, allowing people earning up to 150% of poverty level to get health insurance for $0. Higher earners can get coverage for 8.5% of income
