The Senate will reconvene at 12:00 P.M. as meetings continue on the Inflation Reduction Act of 2022. Democratic and Republican staffers continue back-to-back private meetings with the Senate parliamentarian which are expected to last through Wednesday. Those huddles with the chamber’s nonpartisan rules referee will help determine whether each piece of the bill conforms with the rules allowing Democrats to pass the package without the threat of a filibuster as Senate Democrats have focused much of their efforts on preparing the bill for the floor. The task has spanned countless meetings with the chamber’s parliamentarian, as party lawmakers look to ensure their spending proposal adheres to the strict rules of reconciliation which allows Democrats to adopt their bill using their 51-vote, tiebreaking majority, rather than the usual 60 votes required in the chamber. A final vote could still be days away and occur over the weekend, since reconciliation opens the door for lawmakers to offer an unlimited number of amendments. Republican aides have signaled they plan to put forward as many politically challenging proposals as they can, making it hard for Democrats to stay together. Senate Democratic aides are expecting the chamber to convene at noon each day this week to allow for those parliamentary meetings in this morning, according to a floor notice. The floor notice said that examination of the bill’s compliance with Senate rules would “likely continue throughout consideration of the bill and could happen in real time.” Of note, the parliamentarian has yet to rule on the prescription drug proposal, and now she must hear arguments on the package’s tax and climate pieces as well. Some of the newer policies included in the Senator Joe Manchin (D-West Virginia)-approved deal have yet to receive a lot of scrutiny for compliance with the budget rules — a procedural gantlet that would normally prove time-consuming.
Also of note, Senator Kyrsten Sinema (D-Arizona), has said she is still reviewing the proposal and has not yet offered her final views on the bill. Her earlier objections to the Build Back Better Act forced party leaders to whittle down their plans considerably. The Arizona moderate last year did not support Democrats’ initial efforts to raise tax rates on corporations and wealthy Americans, leaving them no choice but to abandon a central element of Biden’s agenda. Sinema isn’t expected to oppose all tax changes but in the past she’s indicated that she doesn’t support eliminating the carried interest tax break. That tax perk allows private equity and hedge fund managers to pay lower capital gains tax rates, which top out at 23.8%, rather than the 37% income tax rate on a portion of their earnings. The senator has never publicly explained the reasoning for her stance on carried interest.
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Inflation Reduction Act of 2022
Summaries
Inflation Reduction Act – One Page Summary
Tax Summary
Prescription Drugs Summary
Energy Security and Climate Change Investments Summary
For today, the Senate is expected to resume consideration of the nomination of Elizabeth Wilson Hanes, to be United States District Judge for the Eastern District of Virginia, post-cloture.
