After combining with Kyrsten Sinema (shown above partying with Arizona Chamber of Commerce types in 2019) to kill President Biden’s Build Back Better agenda earlier this year, Joe Manchin promised he’d be open to passing a streamlined version of the bill, one designed to address access to healthcare, prescription drug costs, foster a substantial but less ambitious (read costly) climate change agenda, and off-set some of the inequalities created by the Trump tax cuts to the Uber-rich. And today he and Chuck Schumer hilariously pulled the rug out from under the feet of Mitch McConnell when they introduced the “Inflation Reduction Act”, mere minutes after the Senate passed the CHIPS and Science Act designed to promote semiconductor manufacturing in the U.S., which many Republicans, eager to stick it to Chyyna, favored, but McConnell had threatened to hold hostage unless Democrats abandoned their hope of delivering a reconciliation bill for Biden to sign for a political win ahead of the midterms.
Chalk one up for the good guys.
The broad outlines of the DRA are:
The Manchin-Schumer bill closes the carried interest loophole. Hedge funds and private equity gonna lose their minds.
Big energy money here pic.twitter.com/eE04R1rGTW
— Ryan Grim (@ryangrim) July 27, 2022
The bad news is that Manchin and Schumer did not consult (that we know of) Kyrsten Sinema who in the past has expressed reluctance to beleaguer the poor oppressed Hedge Fund managers with the elimination of their favorite tax boondoggle, the Carried Interest Loophole.
“Senate Maj. Leader Chuck Schumer and Sen. Joe Manchin, D-W.Va., threw a legitimate curveball at their Senate colleagues Wednesday when they abruptly announced a reconciliation deal much broader than almost anyone thought possible just days ago.
But Manchin hasn’t been the only Democratic stumbling block to passage of any deal and now the spotlight shifts to Sen. Kyrsten Sinema, D-Ariz., who has yet to comment on the new agreement.
The provisions that mirror the White House framework for the Build Back Better Act are likely to be fine with her — that includes a 15% corporate minimum tax, prescription drug savings, Affordable Care Act funding and more. A few weeks ago, her office pointed NBC News to a supportive statement she issued on that October 2021 framework.
Last year, she conveyed to Democratic leaders that she opposed closing the carried interest tax break, which affects investment managers. That provision was dropped from the House bill as a result. Her office declined to comment to NBC News on Wednesday when asked about that provision being added back in the Schumer-Manchin deal.“
The good news is that even if Sinema insists her real Democratic colleagues drop the Carried Interest Revenue from the bill, it could still be a significant win for them, and the nation, despite the wails of despair and gnashing of dentures you will hear from Republicans in the coming days.
But would that be enough to satisfy Sinema or will she do some more hostage taking of her own?
One would hope that what with the Republican Party showing their entire ass on women’s heathcare, voting rights, gun safety and the like, Sinema might remember that she is a Democrat and has a constituency to serve.
But, after the last two years, whether she will or won’t is anyone’s guess.
I, for one, would like to see more Republican tears shed over this bill…
Cotton says Manchin double crossed Republicans pic.twitter.com/IL07ewkEsU
— Acyn (@Acyn) July 28, 2022