Democrats Outsmart Mitch McConnell With Surprise Reconciliation Deal

McConnell said last month that he wouldn't allow the Senate to pass a bipartisan bill on computer chips if Democrats tried to revive their "build back better" agenda.

Hours after the Senate approved the bipartisan tech manufacturing bill, Democrats announced a breakthrough on their domestic policy legislation.

McConnell's plan didn't work.

The new bill was agreed to by Schumer and Manchin after Manchin refused to support the previous one.

Democrats have been frustrated that the majority of President Joe Biden's domestic agenda was not going to happen. Hundreds of billions of dollars for some of the party's long-sought priorities would be provided by the new deal.

The legislation would require Medicare to pry lower prescription prices from drugmakers, impose a minimum tax on corporations, and boost tax revenue through an investment in IRS enforcement.

The bill would cut the federal budget deficit in half. Democrats want to use every penny of increased tax revenue for new social spending, but have given up trying to win Manchin over. The other provisions in the measure aren't inflationary, according to the former Treasury Secretary.

Manchin said that "Build Back Better is dead and instead we have the chance to make our country stronger by bringing Americans together."

McConnell said in June that there would be no bipartisan chip bill if Democrats pursued a reconciliation bill.

The statement was meant to prevent Republicans from supporting the chips bill and to frighten Manchin away from reconciliation.

Manchin told his colleagues last week that he wouldn't support new spending or taxes in the face of high inflation. The Senate passed a slimmed-down chips bill by a vote of 64 to 33 with 17 Republicans in support.

Manchin made a breakthrough on reconciliation after it passed. The new bill has a long way to go since it is not certain if it will get the necessary support from Senate and House Democrats.

McConnell is not happy.

McConnell said that Democrats have crushed American families with inflation. They want to raise taxes that will hurt workers and kill jobs.

The article was first published on HuffPost.