A flagship Democratic economic bill perched on the edge of House passage Friday, placing President Joe Biden on the brink of a back-from-the-dead triumph on his climate, health and tax goals that could energize his party ahead of November’s elections. Democrats were poised to muscle the measure through the narrowly divided House Friday over solid Republican opposition. They employed similar party unity and Vice President Kamala Harris’ tie-breaking vote Sunday to power the measure through the 50-50 Senate. The package is but a shadow of Biden’s initial vision and was produced only after a year of often bitter infighting between party leaders, progressives and centrists led by Sen. Joe Manchin, D-W.Va., empowered by that chamber’s even split. Ultimately, Democrats thirsty to declare victory forged a compromise on abiding goals like reining in pharmaceutical costs, taxing large companies and, especially, curbing carbon emissions. They are hoping to show they can wring accomplishments from an often fractiously gridlocked Washington that alienates many voters. “Climate is a health issue. It’s a jobs issue. It’s a security issue. And it’s a values issue for us,” House Speaker Nancy Pelosi, D-Calif., told reporters this week. “I want more, of course, we always want more, but this is a great deal.” The bill’s pillar is about $375 billion over 10 years to encourage industry and consumers to shift from carbon-emitting to cleaner forms of energy, hailed by experts as Congress’ biggest climate investment ever. That includes $4 billion added to cope with the West’s catastrophic drought. Spending, tax credits and loans would bolster technology like solar panels, consumer efforts to improve home energy efficiency, emission-reducing equipment for coal- and gas-powered power plants and air pollution controls for farms, ports and low-income communities. In a pair of top Democratic health priorities, another $64 billion would help 13 million people pay premiums over the next three years for privately bought health insurance. Medicare would gain the power to negotiate its costs for pharmaceuticals, initially in 2026 for only 10 drugs. Medicare beneficiaries’ out-of-pocket prescription costs would be limited to $2,000 starting in 2025, and starting next year they would pay no more than $35 monthly for insulin, the costly diabetes drug. The bill would raise around $740 billion in revenue over the decade, over a third from government savings from lower drug prices. More would flow from higher taxes on some $1 billion corporations, levies on companies that repurchase their own stock and stronger IRS tax collections. Around $300 billion would remain to defray budget deficits, a fraction of the period’s projected total of $16 trillion. Republicans say the legislation’s tax hikes will force companies to raise prices, worsening the nation’s bout with its worst inflation since 1981 that is wounding Democrats’ election prospects. Nonpartisan analysts say the measure will have negligible inflation impact one way or the other. Echoing other culture war themes, the GOP has criticized initiatives like tax breaks for clean energy and electric vehicles as wasteful liberal daydreams. “If the Green New Deal and corporate welfare had a baby, it would look like this,” said Rep. Kevin Brady of Texas, the House Ways and Means Committee’s top Republican. Republicans say Democrats’ plan to expand the IRS budget, aimed at collecting about $120 billion in unpaid taxes, envisions 87,000 agents who’d be coming after families. […]
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