And on Thursday, Ms. Sinema announced she, too, would move forward after extracting concessions, including dropping a provision that would have narrowed a tax break that allows private equity executives and hedge fund managers to pay substantially lower taxes on some income than other taxpayers do.
What’s in the Democrats’ Climate and Tax Bill
A new proposal. The $369 billion climate and tax package that Senate Democrats proposed in July could have far-reaching effects on the environment and the economy. Here are some of the key provisions:
Auto industry. Currently, taxpayers can get up to $7,500 in tax credits for purchasing an electric vehicle, but there is a cap on how many cars from each manufacturer are eligible. The new bill would eliminate this cap and extend the tax credit until 2032; used cars would also qualify for a credit of up to $4,000.
Energy industry. The bill would provide billions of dollars in rebates for Americans who buy energy efficient and electric appliances and tax credits for companies that build new sources of emissions-free electricity, such as wind turbines and solar panels. It would also set aside $60 billion to encourage clean energy manufacturing in the United States. It would also require businesses to pay a financial penalty per metric ton for methane emissions that exceed federal limits starting in 2024.
Low-income communities. The bill would invest over $60 billion to support low-income communities and communities of color that are disproportionately burdened by effects of climate change. This includes grants for zero-emissions technology and vehicles, as well as money to mitigate the negative effects of highways, bus depots and other transportation facilities.
West Virginia. The bill would also bring big benefits to Mr. Manchin’s state, the nation’s second-largest producer of coal, making permanent a federal trust fund to support miners with black lung disease and offering new incentives for companies to build wind and solar farms in areas where coal mines or coal plants have recently closed.
“The bill, when passed, will meet all of our goals: fighting climate change, lowering health care costs, closing tax loopholes abused by the wealthy and reducing the deficit,” Mr. Schumer said on the Senate floor on Saturday. “This is a major win for the American people and a sad commentary on the Republican Party as they actively fight provisions that lower costs for the American family.”
Democrats were speeding the bill through Congress under the arcane budget process known as reconciliation, which shields certain tax and spending measures from a filibuster but also strictly limits what can be included.
Republicans remain unanimously opposed to the measure and have feverishly worked to derail it, fuming at the resurgence of a plan they thought was dead. Blindsided by the deal between Mr. Schumer and Mr. Manchin, they have scrambled to attack the bill as a big-spending, tax-hiking abomination that will exacerbate inflation and damage the economy at a precarious moment.
“Democrats are misreading the American people’s outrage as a mandate for yet another — yet another — reckless taxing and spending spree,” said Senator Mitch McConnell of Kentucky, the minority leader.
Source Article from https://www.nytimes.com/2022/08/06/us/politics/climate-tax-bill-senate.html
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