Jul 17, 2022
Sen. Manchin hits brakes on Democrats’ tax-and-spending bill Transcript
Speaker 1: (00:00)
Senator Manchin now saying he won’t support certain parts of the president’s agenda, leaving Democrats in a precarious position ahead of the midterms. Ylan Mui has the latest for us Ylan.
Speaker 2: (00:10)
Well, Kelly, the inflation numbers spooked Senator Manchin. Today, he called the 9.1% spike, “An alarming figure.” And after it came out, he said he told Senate majority leader, Chuck Schumer, “It’s not prudent to move ahead with a trillion dollar tax and spending bill.”
Speaker 2: (00:25)
Now what he is willing to support right now, allowing Medicare to negotiate prescription drug prices and extending ACA insurance subsidies for two years. That means no tax increases for companies or individuals, including closing that loophole in the net investment income tax for certain pass through businesses.
Speaker 2: (00:43)
But it also means no climate provisions, no clean energy tax credits, including for solar and no credits for hydrogen battery cars. A source tells me electric vehicle tax credits were already out of the deal. Now Manchin’s fellow Democrats lamented his change of heart on Twitter. Senator Ed Markey wrote, “Rage keeps me from tears. Resolve keeps me from despair. We will not allow a future of climate disaster.”
Speaker 2: (01:07)
Now what ultimately happens with this bill could end up shifting the dynamic around a separate bill to provide $52 billion to the semiconductor industry. Republicans have said they won’t support money for chips as long as Democrats are pursuing that other bill. So Kelly maybe Manchin will make the choice for Democrats clear back over to you.
Speaker 1: (01:26)
So Ylan, you think it could actually increase the odds of the chips act passing?
Speaker 2: (01:29)
Quite possibly. Republicans feel that the reconciliation bill as it’s been called, is dead in the water. Maybe they’re more willing to support chips. We won’t know for sure until everybody comes back next week and those negotiations continue.
Speaker 1: (01:43)
No, I hadn’t connected those dots. It’s a great point.