In a key first test of Democrats’ ability to win passage of the sweeping legislation, the Senate voted 51-50 with Vice Speaker Kamala Harris breaking a tie during a rare session Saturday to begin an extended debate on the measure. . All 50 Republicans voted against advancing the legislation. The procedural vote created an arduous process with senators proposing amendment after amendment in a time-consuming “vote-a-rama.” Sign up now for FREE unlimited access to Reuters.com Register Senate lawmakers decided that the lion’s share of health care provisions in the $430 billion bill could only be passed by a simple majority, Majority Leader Chuck Schumer said, bypassing a rule that requires 60 votes in the 100-seat chamber. for pushing more legislation and enabling Democrats to push it over Republican objections. Democrats hope the legislation will give their candidates a boost in the Nov. 8 midterm elections, in which Biden’s party is in an uphill battle to retain close control of the Senate and House of Representatives. Democrats pitched the legislation as a vehicle to fight inflation, a top concern for American voters this year. “The bill, when passed, will accomplish all of our goals: fighting climate change, lowering health care costs, closing tax loopholes abused by the wealthy, and reducing the deficit,” Schumer said in a speech on the Senate floor. There are three main parts to the bill’s tax provisions: a 15% minimum tax on corporations and closing loopholes that the wealthy can use to avoid paying taxes. Stronger IRS enforcement. and a new excise tax on share buybacks. The legislation has $430 billion in new spending along with raising more than $740 billion in new revenue. read more Democrats have said the legislation by 2030 would result in a 40 percent reduction in U.S. carbon emissions, which are responsible for climate change.
‘PRICE CONNECTION’
The measure would also allow the government’s Medicare health insurance program for seniors to begin price negotiations in 2026 with the drug industry on a limited number of prescription drug prices as a way to cut costs. It also would put a cap of $2,000 a year on out-of-pocket drug costs under a Medicare drug plan. Senate Republican Leader Mitch McConnell attacked the drug price negotiation provision, comparing it to previous “price fixing” attempts by countries such as Cuba, Venezuela and the former Soviet Union. “Their policy would bring about a world where far fewer new drugs and treatments are invented in the first place as companies cut back on R&D,” McConnell said in a speech, referring to research and development. The legislation is a watered-down version of a much broader, more expensive measure that many Democrats on the left of the party had hoped to pass last year. That measure was delayed when centrist Democratic Sen. Joe Manchin balked, complaining it would exacerbate inflationary pressures. The bill calls for billions of dollars to encourage the production and purchase of more electric vehicles and promote clean energy. It would also designate $4 billion in new federal drought relief funds, a provision that could help the re-election campaigns of Democratic Sens. Catherine Cortez Masto in Nevada and Mark Kelly in Arizona. Democrats aim to push the bill through the Senate using the complicated “reconciliation” process that allows a vote without Republican support in the 50-50 chamber, with Democrats in control because Vice President Kamala Harris can provide a tie . A provision cut from the bill would have forced drug companies to refund money to both state and private health plans if drug prices rise faster than inflation. Left-leaning senators like Bernie Sanders are likely to try to expand the bill’s scope to include new programs like federal subsidies for child care or home health care for seniors. Republicans have indicated they will offer amendments that touch on another issue: immigrants crossing the US-Mexico border. Some Democrats have said they will vote against all the amendments, fearing they could lead to the revelation of a delicately negotiated deal. Sign up now for FREE unlimited access to Reuters.com Register Report by Richard Cowan and Makini Brice. additional reporting by Valerie Volcovici. Editing: Will Dunham and Scott Malone Our Standards: The Thomson Reuters Trust Principles.
