Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Manchin-Schumer Bill Gets Budget-Office Nod for $102 Billion Deficit Cut

Economy Aug 04, 2022 04:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. The US Capitol building in Washington, D.C., US, on Tuesday, June 21, 2022. The White House and congressional Democrats are in advanced talks on legislation that aims to fight inflation, rein in the deficit and revive parts of President Joe Biden's stalled economic agenda. 2/2

(Bloomberg) -- The Senate Democrats’ tax, climate and drug-price bill would reduce federal budget deficits by $102 billion over 10 years, the nonpartisan Congressional Budget Office said. 

In addition, the CBO calculated that increasing the Internal Revenue Service budget would generate $204 billion in new revenue from cracking down on tax avoidance, something that wasn’t included in the official deficit score. When that is factored in, the CBO analysis is in line with the $300 billion in deficit reduction claim initially made for the bill by Senate Majority Leader Chuck Schumer and West Virginia Senator Joe Manchin. 

The CBO estimate will be used both to sell the bill to the public and by the top Senate rules official to determine whether provisions comply with the chamber’s budget rules. Elements that don’t affect the budget could be stricken from the bill.

The deficit decrease is driven in part by a repeal of a Trump administration restriction on prescription drug rebates, generating $122 billion and by allowing Medicare to negotiate the cost of high-priced drugs, which generates $102 billion.

A 15% corporate minimum tax on large corporations generates $313 billion, as expected, while a narrowing of the carried interest loophole nets $13 billion in the score, slightly less than Democrats forecast.

The bill’s spending includes $31 billion to provide Obamacare premium subsidies for three years along with a slew of tax breaks for clean energy. 

Budget watchdogs on Wednesday urged Congress to resist pressure by business groups to gut the corporate tax and carried interest changes.

“The Inflation Reduction Act is the largest deficit-reduction bill in over a decade. But it’s only a first step toward fighting surging inflation and tackling our $24 trillion national debt. We can’t let special interests water it down,” said Maya MacGuineas of the Committee for a Responsible Federal Budget.

©2022 Bloomberg L.P.

Manchin-Schumer Bill Gets Budget-Office Nod for $102 Billion Deficit Cut
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email