We are also currently receiving significant support from Senator Kyrsten Sinecine, who requested some changes.
According to the Office of Management and Budget, the latest version of the package will reduce the deficit by more than $ 300 billion in 10 years.
The current trading possibilities are as follows:
The Office of Management and Budget has previously scored drug price measurements, stating that it will reduce the federal deficit by a total of $ 288 billion over a 10-year period.
But Democrats are waiting for a new cost estimate from the CBO to see how the ruling affects the deficit forecast. A parliamentary decision could reduce some package deficit reductions.
Medicare Drug Price Negotiations:This bill authorizes Medicare to negotiate the prices of certain expensive drugs that are administered in the clinic or purchased in pharmacies. .. The Secretary of Health will negotiate prices for 10 medicines in 2026 and an additional 15 medicines in 2027 and 2028. The number will increase to 20 drugs annually after 2029.
This controversial provision is far more restrictive than what House Democratic leaders have endorsed in the past. But that will open the door to achieving the long-standing party's goal of allowing Medicare to use its burden to lower drug costs.
Inflation cap:The law also imposes penalties if pharmaceutical companies raise prices faster than inflation. However, lawmakers decided that, as the Democrats wanted, this provision could only be applied to Medicare, not the private insurance market.
Medicare Out-of-pocket Cost Limits:The bill redesigns Medicare's Part D drug plan, allowing older people and people with disabilities to take drugs annually Don't pay more than $ 2,000. I bought it at a pharmacy. Insurance and pharmaceutical companies need to get more tabs.
Free Vaccines for the Elderly:Medicare subscribers get all the vaccinesfor free. Currently, only certain vaccines such as Covid-19, flu and pneumonia are free.
Affordable Care Act Grants:The Democratic Party is also a year behind what lawmakers recently discussed, and the enhanced federal coverage of Obamacare until 2025. We are considering extending the premium subsidy. That way, it won't expire shortly after the 2024 presidential election.
Subscribers pay only 8.5% of their income to cover and reduce from nearly 10%. In addition, low-income policyholders receive subsidies that completely eliminate premiums.
Also, those who earn more than 400% of federal poverty levels were the first to be helped.
According to the Kaiser Family Foundation, nearly all 13 million subsidized registrants will raise their premiums in 2023 if enhanced federal support is allowed to expire at the end of the year. Probably. According to an analysis by the Urban Institute, more than 3 million people can be uninsured.
Democrats want to avoid negative publicity of such premium increases. If Congress doesn't act, consumers will learn how much they have to pay in the fall. General registration will begin on November 1st, one week before the election date.
According to the CBO, extending the enhanced subsidy will cost $ 64 billion.
Climate Clause:This deal will be the largest climate investment in US history. By 2030, US greenhouse gas emissions will be reduced by 40%, according to the office of Chuck Schumer's majority leader.
The new agreement covers everything from tax credits for electric vehicles to clean energy production and investment in the environmental justice community.
The extension of the tax credit for electric vehicles was successful after previous opposition from Manchin. Tax credits will continue at current levels, up to $ 4,000 for used electric vehicles and up to $ 7,500 for new electric vehicles. However, the eligibility income standard will be reduced. This is the main demand for Manchin.
The bill also includes a 10-year tax credit to reduce the cost of heat pumps, rooftop solar, electric HVAC, and water heaters. This includes $ 60 billion in funding for the environmental justice community and the reduction of legacy pollution.
And we will invest $ 60 billion in domestic clean energy production and $ 30 billion in production credit tax credits for wind, solar and battery storage.
The bill will provide $ 4 billion in additional drought funding. This is an important bargaining point for cinema during the multi-year drought in the Southwest. The Democratic Party confirmed Thursday afternoon.
Tax credits are technically neutral. In other words, we do not prioritize renewable energy over fossil fuels with carbon reduction measures. But according to Oregon Democrat Ron Wyden, Senate Treasury Chairman, these are designed to reward those who have cut emissions the most.
The transaction also includes key provisions such as a methane program that charges oil and gas producers who emit methane above certain thresholds. It also includes the so-called clean energy accelerator of $ 27 billion. It's basically a green bank that leverages public and private funding to expand more green projects.
Tax provisions:To increase income, the bill imposes a minimum tax of 15% on income reported to shareholders by large corporations, in contrast to the Internal Revenue Service. To do. According to the latest figures provided by Schumer,, the measures to raise $ 258 billion over 10 years,apply to companies with profits in excess of $ 1 billion.
Concerned about how this provision will affect certain businesses, especially manufacturers, Cinema has changed its Democratic plan to reduce the way businesses deduct depreciable assets from taxes. Suggested that he won. Details remain unknown.
However, Cinema denied the party's efforts to tighten the carry-over interest loophole. This allows investment managers to treat much of their compensation as capital gains and pay a long-term capital gains tax rate of 20% instead of an income tax rate. Up to 37%. This provision would have extended the period during which the investment manager's profits and profits had to be retained in order to take advantage of lower tax rates from three years to five years. Addressing this loophole, which would have raised $ 14 billion in 10 years, has long been a goal of Congressional Democrats.
Instead, a 1% excise tax was added on the company's share repurchase, raising an additional $ 74 billion, according to Schumer's office
The package also requires the IRS to provide more funding for tax enforcement, which will raise $ 124 billion.
Also, there is no new tax on SMEs.
Manchin also cast cold water on one of Schumer's priorities. This is part of the 2017 Republican Tax Reduction Package, Northeast and West Coast.
The transaction also excludes the additional tax charges on wealthy individuals that were part of last year's house bill.
This is likely to be ruled out
Cheaper insulin:House bills cost Americans $ 35 a month I was limiting the amount of money I would pay for insulin. The bill was not initially included in the Senate arrangement, but the Democratic Party is trying to add it again.
Universal Pre-Kindergarten and Lower Childcare Costs:The House Bill provides free pre-kindergarten for children ages 3 and 4 with access to 6 million children annually Was expanded. In addition, childcare costs for families with children under the age of 6 are limited to less than 7% of income for incomes up to 250% of the state's median income, expanding access to approximately 20 million children. increase. Funding for these programs lasted for six years and cost an estimated $ 381.5 billion, according to the CBO.
Coronavirus Relief Package,were implemented only in 2021.
Households and co-filers with annual incomes of up to $ 112,500 Earning up to $ 150,000 per year is eligible for fully enhanced credit. But unlike 2021, only these families would have been funded in monthly installments this year. High-income qualified parents will need to claim credit on their tax return next year.
Credits will be refunded forever, so low-income families can continue to qualify.
According to the CBO, this credit costs about $ 203 billion, including the earned income tax credit.
Earned Income Tax Credit:The extended Earned Income Tax Credit , which was also part of the Coronavirus Relief Package, has also been extended to 2022 to 17 million. Workers without low-paying children.
The House bill almost tripled the maximum credits a childless worker could receive, expanded eligibility to more people, reduced the minimum age, and lifted the age limit. prize. According to the CBO, this credit will cost about $ 203 billion, along with an enhanced child tax credit.
Home Healthcare:Biden's original plan is to reduce more than 800,000 people waiting for Medicaid in the state, home health care services for the elderly and disabled. Wanted to permanently improve the scope of Medicaid. list.
This plan was also aimed at improving the quality of long-term care work. According to the CBO, this measure will cost about $ 158 billion.
Affordable Homes:The law is for building, rehabilitating, buying, and creating and preserving affordable rental homes for low-income earners. You've poured $ 25 billion. It would have provided $ 65 billion to address the unprocessed portion of public housing capital needs and strengthenedrental assistance for hundreds of thousands of families.
The bill would have also invested in down payment support and community-led redevelopment projects in underfunded areas. And it would have provided $ 24 billion to fund housing vouchers and support services.
According to the CBO, this effort will cost about $ 148.1 billion.
Historically, you would have invested in black colleges and other institutions that serve undervalued communities. And it would have increased funding for labor development.
CBO estimates that these provisions will cost a total of $ 39.8 billion to.
Biden initially also required free tuition at community colleges for two years, but that provision was removed from the House bill.
Medicaid Coverage Gap:The Democratic Party sought to provide a premium subsidy for low-cost Affordable Care Act-income Americans in 12 states not expanding Medicaid Would have been able to purchase Obamacare insurance without a monthly premium until 2025.
The CBO estimated that this would cost about $ 57 billion.
Medicare Hearing Benefits:Hearing services have been covered by Medicare since 2023 under a bill that passed the House of Representatives.
Whitehouse says that only 30% of older people over the age of 70 who may benefit from hearing aids have used hearing aids.
According to the CBO, this measure will cost $ 36.7 billion.
Medicare increased solvency:The Senate Democrats signed a contract in early July to extend Medicare's solvency for several years by closing tax loopholes. This proposal will ensure that the owner of a particular "pass-through" business that includes business income in an individual's tax return pays a net investment income tax of 3.8%. It would have been applied to individuals who earn more than $ 400,000 a year and co-filers who earn more than $ 500,000.
However, the agreement was subsequently terminated by Manchin.
This story has been updated with additional development.