Bernie admits Biden's Inflation Reduction Act WON'T bring it down and will have only a 'minimal impact' as bill passes initial Senate hurdle after Kamala broke deadlock

  • U.S. Senator Bernie Sanders slammed Biden's Inflation Reduction Act of 2022, saying it will do little to rein in rampant inflation 
  • The Senate voted 51-50 to debate Democrats' bill on climate, energy, health and taxes, with Vice President Kamala Harris presenting the tie-breaking vote 
  • Dems were united behind Biden's reconciliation bill for the first time as Senators Joe Manchin and Sen. Kyrsten Sinema voted with their party
  • The moderate Democrats showed their support following deals with Senate Majority Leader Chuck Schumer, who called it a historic bill
  • Republicans slammed the Inflation Reduction Bill as unnecessary spending that would only hurt Americans economically

U.S. Senator Bernie Sanders said Biden's Inflation Reduction Act of 2022 will not bring down rampant inflation and would only have a 'minimal impact.'

After Vice President Kamala Harris broke a tie in the Senate to push the reconciliation bill through the initial hurdle in a 51-50 vote, lawmakers began debating the bill, with Sanders offering a realistic outlook over the measure. 

'I want to take a moment to say a few words about the so-called Inflation Reduction Act' that we are debating this evening,' Sanders, of Vermont, said on the Senate floor. 'And I say so-called, by the way, because according to the CBO, and other economic organizations that study this bill, it will, in fact, have a minimal impact on inflation.'

The package, a dwindled version of earlier multi trillion-dollar measures that Democrats failed to advance, has become a partisan battleground over inflation, gasoline prices and other issues that polls show are driving voters.

It lists a sprawling collection of President Joe Biden's priorities on climate, energy, health and taxes, but Sanders said it would do little for the average American dealing with the highest levels of inflation in 41 years.   

U.S. Senator Bernie Sanders slammed Biden's Inflation Reduction Act of 2022, saying it will do little to rein in rampant inflation

U.S. Senator Bernie Sanders slammed Biden's Inflation Reduction Act of 2022, saying it will do little to rein in rampant inflation

The Senate voted 51-50 to debate Democrats' bill on climate, energy, health and taxes, with Vice President Kamala Harris (pictured) presenting the tie-breaking vote

The Senate voted 51-50 to debate Democrats' bill on climate, energy, health and taxes, with Vice President Kamala Harris (pictured) presenting the tie-breaking vote

Sanders' criticisms comes as inflation hit a 41-year record high of 9.1 percent in June

Sanders' criticisms comes as inflation hit a 41-year record high of 9.1 percent in June 

Although initially one of the biggest proponents for Biden's reconciliation bill when it was known as Build Back Better, the nearly $3 trillion measure was slashed when Sen. Joe Manchin refused to back it for its overly ambitious social spendings.   

In his criticisms of the now-trimmed bill, Sanders said it does not address childhood poverty, growing income inequality, nor does it tackle flaws in the American healthcare system. 

'The American people are tired.. They are hurting and they are begging their elected officials to respond to their needs,' Sanders said as he slammed Democrats and Republicans alike for failing to come together on the bill that passed its first hurdle along partisan lines. 

'The wages for the average American worker are lower today than they were 49 years ago, and clearly, the inflation of today is pushing the average person even further behind.' 

In a preview of votes expected on a mountain of amendments, united Democrats pushed the legislation through the evenly divided chamber, with Harris breaking the tie and overcoming unanimous Republican opposition. 

The House, where Democrats have a slender majority, could give it final approval next Friday when lawmakers plan to return to Washington.

The vote came after the Senate parliamentarian gave a thumbs-up to most of Democrats' revised 755-page bill as Democratic moderates Manchin and Kyrsten Sinema finally showed support for the legislation.  

Despite his criticism, Sanders, pictured prior to the vote on Saturday, sided with Democrats to begin debate of the Inflation Reduction Act

Despite his criticism, Sanders, pictured prior to the vote on Saturday, sided with Democrats to begin debate of the Inflation Reduction Act

Sen. Joe Manchin, of West Virginia
Sen. Kyrsten Sinema, of Arizona

Democrats were fully united behind Joe Biden's reconciliation bill for the first time as Sen. Joe Manchin (left), of West Virginia, and Sen. Kyrsten Sinema (right), of Arizona, voted in favor after reaching a deal with their party's leadership 

Senate Majority Leader Chuck Schumer, of N.Y., hailed the passing of the first hurdle for the bill

Senate Majority Leader Chuck Schumer, of N.Y., hailed the passing of the first hurdle for the bill

But Elizabeth MacDonough, the chamber's nonpartisan rules arbiter, said Democrats had to drop a significant part of their plan for curbing drug prices.

MacDonough said Democrats violated Senate budget rules with language imposing hefty penalties on drug makers who boost their prices beyond inflation in the private insurance market. 

Those were the bill's chief pricing protections for the roughly 180 million people whose health coverage comes from private insurance, either through work or bought on their own.

Other pharmaceutical provisions were left intact, including giving Medicare the power to negotiate what it pays for drugs for its 64 million elderly recipients, a longtime Democratic aspiration. 

Penalties on manufacturers for exceeding inflation would apply to drugs sold to Medicare, and there is a $2,000 annual out-of-pocket cap on drug costs and free vaccines for Medicare beneficiaries.

'The time is now to move forward with a big, bold package for the American people,' said Senate Majority Leader Chuck Schumer, a New York Democrat. 'This historic bill will reduce inflation, lower costs, fight climate change. It's time to move this nation forward.'

Senate Minority Leader Mitch McConnell, of Kentucky., said Democrats 'are misreading the American people's outrage as a mandate for yet another reckless taxing and spending spree.' 

He said Democrats 'have already robbed American families once through inflation and now their solution is to rob American families yet a second time.'

Saturday's vote capped a startling 10-day period that saw Democrats resurrect top components of Biden´s agenda that had seemed dead. 

Senate Minority Leader Mitch McConnell of Ky., walks to his office on Capitol Hill in Washington, Saturday, Aug. 6, 2022. (AP Photo/Patrick Semansky)

Senate Minority Leader Mitch McConnell of Ky., walks to his office on Capitol Hill in Washington, Saturday, Aug. 6, 2022. (AP Photo/Patrick Semansky)

The Senate parliamentarian on Saturday, Aug. 6, 2022, dealt a blow to Democrats' plan for curbing drug prices but left the rest of their sprawling economic bill largely intact

The Senate parliamentarian on Saturday, Aug. 6, 2022, dealt a blow to Democrats' plan for curbing drug prices but left the rest of their sprawling economic bill largely intact

In rapid-fire deals with Democrats' two most unpredictable senators - first Manchin, then Sinema - Schumer pieced together a package that would give the party an achievement against the backdrop of this fall´s congressional elections.

A White House statement said the legislation 'would help tackle today´s most pressing economic challenges, make our economy stronger for decades to come, and position the United States to be the world´s leader in clean energy.'

Assuming Democrats fight off a nonstop 'vote-a-rama' of amendments - many designed by Republicans to derail the measure - they should be able to muscle the measure through the Senate.

'What will vote-a-rama be like? It will be like hell,' Sen. Lindsey Graham of South Carolina, the top Republican on the Senate Budget Committee, said of the approaching GOP amendments. 

He said that in supporting the Democratic bill, Manchin and Sinema 'are empowering legislation that will make the average person´s life more difficult' by forcing up energy costs with tax increases and making it harder for companies to hire workers.

The bill offers spending and tax incentives favored by progressives for buying electric vehicles and making buildings more energy efficient. 

But in a bow to Manchin, whose state is a leading fossil fuel producer, there is also money to reduce coal plant carbon emissions and language requiring the government to open more federal land and waters to oil drilling.

Sen. Lindsey Graham (above), of South Carolina, slammed the vote and condemned Manchin and Sinema for their vote in support of it

Sen. Lindsey Graham (above), of South Carolina, slammed the vote and condemned Manchin and Sinema for their vote in support of it

The legislation stands as Biden's second attempt at the budget reconciliation after Manchin sank the Build Back Better Bill

The legislation stands as Biden's second attempt at the budget reconciliation after Manchin sank the Build Back Better Bill

Expiring subsidies that help millions of people afford private insurance premiums would be extended for three years, and there is $4 billion to help Western states combat drought. 

A new provision would create a $35 monthly cap for insulin, the expensive diabetes medication, for Medicare and private insurance patients starting next year. It seemed possible that language could be weakened or removed during debate.

Reflecting Democrats' calls for tax equity, there would be a new 15 percent minimum tax on some corporations that earn over $1 billion annually but pay far less than the current 21 percent corporate tax. 

Companies buying back their own stock would be taxed 1 percent for those transactions, swapped in after Sinema refused to support higher taxes on private equity firm executives and hedge fund managers. The IRS budget would be pumped up to strengthen its tax collections.

While the bill's final costs are still being determined, it overall would spend close to $400 billion over 10 years to slow climate change, which analysts say would be the country´s largest investment in that effort, and billions more on health care. 

It would raise more than $700 billion in taxes and from government drug cost savings, leaving about $300 billion for deficit reduction over the coming decade - a blip compared to that period's projected $16 trillion in budget shortfalls.

Democrats are using special procedures that would let them pass the measure without having to reach the 60-vote majority that legislation often needs in the Senate.

The parliamentarian decides whether parts of legislation must be dropped for violating those rules, which include a requirement that provisions be chiefly aimed at affecting the federal budget, not imposing new policy.

The comments below have not been moderated.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

We are no longer accepting comments on this article.