Manchin, Schumer report abrupt deal on health, energy, taxes

In an unexpected turnabout, Senate Majority Leader Chuck Schumer and Sen. Joe Manchin announced Wednesday they had reached an expansive agreement that had evaded them for months on health care, energy and climate issues.

The larger agreement was blocked by Manchin because he said it would fuel rather than fight inflation.

He and Schumer said the measure would raise $739 billion over the course of 10 years, with the largest chunk coming from a 15% corporate minimum tax.

It would spend over $400 billion on energy and climate initiatives. Over $300 billion would be left to reduce the federal deficit.

The sweeping package will be considered by the Senate next week, said Schumer and Manchin, who had been unable to come to an agreement.

The announcement presented President Joe Biden and Democrats with the possibility of pushing a major achievement through Congress in the runup to November congressional elections in which Republicans seem poised to capture House control and possibly a majority of the Senate.

Democrats called it the Inflation Reduction Act of 2022. Polls show that voters are most concerned about inflation, which was exemplified by gasoline prices that exceeded $5 per gallon. Manchin's opposition to larger packages has been based on his fear that it would fuel inflation.

Legislation on the proposal's issues was derailed by Manchin.

Last week, Manchin, one of the most conservative Democrats in Congress, said he would only agree to more limited legislation to curb prescription drug costs.

After Congress returned from a summer recess in September, he said he was willing to consider a compromise on tax and environment issues.

There was no explanation for Manchin agreeing to the package. The social and environment bill was Biden's top domestic priority.

Manchin said the new measure would dedicate hundreds of billions of dollars to deficit reduction by adopting a tax policy that protects small businesses and working-class Americans while ensuring that large corporations and the wealthy pay their fair share in taxes.