Inflation Reduction Act, which contains $700 billion in spending cuts, is scheduled for a House vote on Aug. 12 despite the absence of CBO scores and uncertainty as to its full financial implications.
Senate Majority Leader Chuck Schumer and Joe Manchin announced on July 27 that a deal had been reached where Manchin would support a $700 billion spending bill, which is expected to generate $725 billion in new revenue and reduce the deficit by $292 billion annually.
As Democrats sought to pass the $1.75 trillion Build Back Better (BBB) Act, the small bill dubbed the Inflation Reduction Act was the result of months of harried negotiations, compromises, and disappointments.
Despite the lack of CBO scores, Democrats seem on track to vote on the bill on Aug. 12. Because the bill has already been passed in the Senate, House passage of the bill will send the legislation straight to the desk of President Joe Biden, who has said he will sign it.
Corporations making more than $1 billion a year are subject to a 15 percent minimum tax. After exemptions, write-offs, and other tax code workarounds are applied, many mega-corporations end up paying substantially less than the 21 percent federal corporate tax rate.
12 August 2022
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