President Joe Biden indicated Monday he is confident that Senate Democrats’ inflation-control bill will support his party’s uphill battle to retain a majority in Congress next year.
Forecasts for November’s midterm elections had looked bleak for Democrats for months, but the commander in chief told reporters on his way to Kentucky that Americans would feel the benefits of the bill immediately if it went into effect.
“Do I expect it to help? Yes I do. It will help immediately,” Biden said when asked about the upcoming election, according to CNN.
He reportedly highlighted the bill’s Medicare cap on out-of-pocket drug costs.
But other measures could take longer to take effect — Democratic Connecticut Sen. Chris Coons hinted during an interview with ABC News This Week that the legislation could take “a year or more” to bring down inflation.
Meanwhile, Republicans are warning Democrats they will pay a political price after the Senate passed the multibillion-dollar climate, health and tax plan by a 51-50 vote late Sunday afternoon.
GOP Rep. Kevin Hern told DailyMail.com that the two moderate Senate Democrats, Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, were “played” by more progressive members of their party to vote for the bill.
“What we saw in the Senate this weekend was a masterclass in misdirection and misinformation. Manchin and Sinema were played. They just voted to raise taxes – in the middle of a recession – less than 100 days before a critical election,” Hern said.
President Joe Biden said the bill will have some “immediate” implications when he commented to reporters on Monday
He suggested it could help improve the Democrats’ chances in the upcoming midterm elections in November
Biden spoke to the press as he set out to inspect storm and flood damage in Kentucky
No GOP senators signed the bill, which passed through a budget process known as reconciliation – meaning the party in power can bypass the required 60 vote threshold to pass a bill by a simple majority. Vice-President Kamala Harris cast the deciding vote in the evenly divided chamber.
Republican critics claim the law’s $430 billion in new spending and about $740 billion in new revenue will skyrocket costs for American families just days after the U.S. economy hits posted a second consecutive quarter of negative growth.
Republican National Committee Chair Ronna McDaniel warned the fallout could hit President Joe Biden’s party in the upcoming midterm elections.
“Democrats will pay the price in November for raising taxes on families during a recession,” McDaniel said in a statement.
The bill now goes to the House of Representatives for a vote, where GOP lawmakers are similarly skeptical about its purported economic benefits.
“Congress should focus on the rising prices of gas, food and just about everything else. But Democrats have no plan to solve the problems they created,” House Minority Leader Kevin McCarthy said Sunday night.
“Instead, they voted on a 700-page spending spree that would raise taxes, hire 87,000 IRS agents and raise inflation.”
Meanwhile, Republicans in the House of Representatives, where the bill goes next, are already throwing it in the air and warning that it will raise taxes on Americans
The Senate passed the Anti-Inflation Act on a cross-party basis after a more than 16-hour session on Sunday
Senate Majority Leader Mitch McConnell tore up the passage of the bill in a statement after Sunday’s vote
The bill, dubbed the Inflation Reduction Act of 2022, is the largest green energy investment ever made. It also expands Affordable Care Act subsidies and is expected to hire 87,000 additional IRS employees over 10 years.
That’s more than double the current workforce of around 78,000, though before accounting for employee losses over the decade.
Last week, GOP members of the Senate Finance Committee commissioned a study by the bipartisan Joint Committee on Taxation that missed certain key data points that predicted the bill would raise taxes for millions of Americans in every income bracket.
Details of the Anti-Inflation Act 2022
Senators Joe Manchin and Chuck Schumer’s new bill will generate $739 billion in new revenue through a variety of proposals:
$313 billion by introducing a 15 percent minimum corporate tax
$288 billion from Medicare’s authorization to negotiate lower drug prices
$124 billion from strict tax enforcement by the IRS
$14 billion to close the carry interest loophole for asset managers
GOP wins in the bill:
Republicans forced Democrats to remove a provision from the bill that would cap the price of insulin at $35
Senator John Thune’s amendment exempts some companies from the newly passed 15 percent minimum corporate tax rate
The bill also includes $433 billion in new spending:
$369 billion for energy security and climate change
$64 billion to expand health care subsidies for the Affordable Care Act
All of this would leave $300 billion to reduce the deficit
Senate Minority Leader Mitch McConnell also urged Democrats to pass the bill in the current economic conditions.
“Faithless, Democrats argued the damage done by their first reckless tax and spending spree was a good excuse to ram another,” McConnell said in a statement after voting against the bill.
The “Democrats” response to the recession they have created is gigantic, job-killing tax hikes and the doubling of the IRS.
However, former President Donald Trump blamed McConnell for failing to stop his passage.
The tenuous relationship of the longtime Republican leader and the ex-president finally fell apart after last year’s riots in the US Capitol. Since then, McConnell has become Trump’s favorite punching bag. The former president has reportedly even attempted, unsuccessfully, to unseat McConnell from his Senate leadership role.
“Mitch McConnell was played like a fiddle by Senate Democrats in today’s vote,” Trump wrote on his Truth Social app on Sunday.
“First he gave them the bogus Infrastructure Bill, then Guns, never used the debt ceiling for negotiation purposes (gave it away for NOTHING!), and now this. Mitch has no idea – he’s sooo[sic] bad for the Republican Party!’
The law passed on Sunday afternoon after about 16 hours of uninterrupted voting.
Under the rules of reconciliation, the bill can only go to the final vote after unlimited rounds of proposed amendments — with which Republicans have forced Democrats to vote on tough issues like crime, the border and the economic threat posed by China.
The GOP’s only victories have been in forcing Democrats to remove a $35 cap on insulin prices for all Americans and adding a loophole to the bill’s 15 percent minimum corporate tax rate.
Republican Senator Mike Lee of Utah wrote on Twitter: “Democrats have chosen to ignore inflation and spend billions beyond our means while rejecting almost every Republican effort to protect taxpayers.”
His colleague GOP Sen. Joni Ernst also chimed in on the platform: “We are in a recession. Inflation is at a 40-year high. Do Democrats really think now is the time to raise taxes and spend more billions? Yes, they do. And her ruthless #TaxAndSpendSpree is proof of that.”
Louisiana Senator John Kennedy released a video directly addressing moderate Democrat Manchin for his leadership of the legislation.
“As a result of Senator Manchin’s bill, and I hope I’m wrong about that, I’m predicting that what some people call Joe-flation will now refer to Joe Manchin and not President Biden,” Kennedy said .