On Sunday, the Senate passed - by a 51-50 margin - the "Inflation Reduction Act," with Vice President Kamala Harris serving as the tiebreaker. There were some crucial adjustments to the bill as the votes on various amendments occurred. Most notably, Sen. Kyrsten Sinema (D-AZ) was concerned that the 15% corporate minimum tax would impact subsidiaries owned by private equity. To pay for this change, Congressional Democrats instead extended the limitation on the amount of losses that businesses can deduct for another two years. The full amendment tracker can be found here
, though you'll note that most of them failed.
Now, the bill heads to the House, which is expected to vote on it on Friday. Since the House is on recess, we expect many members to vote "by proxy," which means that the vote may take a long time to complete. The bill cannot change in the House. A few notes from relevant constituencies:
- The "SALT" Caucus, which informally consists of Democrats from states like New Jersey, New York, and California, seem likely to support the bill, even though it does not fix the state and local tax (SALT) deduction
- The Congressional Progressive Caucus (CPC) put out a press release lamenting that major progressive priorities did not make it into the final bill, but committed to supporting it nonetheless
- We expect zero Republicans to vote in favor of the bill
Finally, here are some statements from major players in the House:
Your WSW team
will continue to monitor and report out in real-time as things develop.