However, a number of concessions were needed to get Sinema, representative of the state of Arizona, along. For example, a $14 billion tax increase for wealthy investors has been scrapped. Financial support to combat the effects of drought, which will greatly benefit drought-stricken Arizona, has just been added. Biden desperately needs the package, worth more than $700 billion, to deliver on his election promises.
The package, dubbed the Inflation Reduction Act of 2022, includes large-scale tax breaks to stimulate the production of renewable electricity. Government subsidies should also bring down the costs of health care. At the same time, the Biden administration wants to reduce the budget deficit by $300 billion, including tax increases for large companies.
To get the package through, Biden cannot lack the support of any Democratic senator. Republicans hold exactly half of the seats in the Senate, and they will vote against it no matter what. Only if all Democrats vote in favour, Democratic Vice President Kamala Harris can cast the casting vote and pass the bill.
sleepers
Biden actually envisioned an even bigger package worth $3.5 trillion, the Build Back Better Act, but Sinema and her West Virginia colleague Joe Manchin fell for it. When the two opposing Democrats also failed to agree to a $2 trillion package, the issue threatened to culminate in a major defeat for Biden. After all, he had promised his voters that he would take major steps in the field of climate and social inequality.
Two weeks ago, Manchin and Democratic leaders struck a deal, resulting in a further watered-down package. Now that Sinema seems satisfied after a few extra adjustments, the leader of the Democrats in the Senate, Chuck Schumer, expects to have enough votes.
The new proposal will be published on Saturday. Schumer said the Senate could vote on it this weekend. Then the House of Representatives, where the Democrats are in the majority, could follow next week.