Senate climate, tax bill grows to 755 pages, passes key CBO test
Senate Majority Leader Charles Schumer (D-N.Y.) on Saturday unveiled the updated text of the Inflation Reduction Act, which now spans 755 pages after a late round of negotiations with Sen. Kyrsten Sinema (D-Ariz.) to protect manufacturers from tax increases and impose an excise tax on stock buybacks.
Schumer’s office announced that the Congressional Budget Office has confirmed the bill meets the special reconciliation instructions laid out in a budget resolution passed last year, which means Democrats can pass it with a simple majority vote.
The bill Schumer unveiled on July 27 after weeks of negotiations with Sen. Joe Manchin (D-W.Va.) stretched 725 pages.
The Democratic leader made several changes to the bill over the past week to win over Sinema, who was left out of the final round of talks with Manchin.
He agreed to remove a piece of the 15 percent corporate minimum tax to shield manufacturing companies from losing the ability to fully expense capital expenditures, a key provision of the 2017 Tax Cuts and Jobs Act.
He also agreed to drop a provision strongly favored by Manchin to close the carried interest loophole, which allows asset managers to pay a 20 percent capital gains tax rate on income earned from advising on profitable investments — a lower rate than many middle-income Americans pay.
But Schumer made up for the lost revenue by adding an excise tax on stock buybacks that is expected to generate 74 billion over the next decade.
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