House Set to Vote Friday on Biden’s $1.75 Trillion Economic Plan

Bloomberg2021-11-05

Vote also clears way for final passage of infrastructure bill Last-minute negotiations appear to have solidified support The U.S. Capitol in Washington, D.C., U.S. Photographer: Tom Brenner/Bloomberg...

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TeslaLegend
2021-11-05
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2021-11-05
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Although much of the bill had been written, there were last- minute changes on modifying the state and local income tax deduction and a provision allowing Medicare to negotiate drug prices.\nApproval of the infrastructure measure, already passed by the Senate, will send it directly to Biden’s desk.\nHouse passage of both measures would deliver a much-needed victory for the president, whose approval ratings have plummeted. A stunning loss for Democrats in the Virginia gubernatorial race and an unexpectedly close call for the incumbent governor of New Jersey generated fresh impetus for the party’s lawmakers to finish work on both the economic package, known as Build Back Better, and an infrastructure measure.\nBiden has been directly involved in negotiating with House and Senate Democrats and he made calls to House members on Thursday asking them to vote yes when the bill comes to the floor, a White House official said.\nPlans for the vote advanced after Pelosi told three potential holdouts, Representatives Adriano Espaillat of New York, Chuy García of Illinois and Lou Correa of California, that she would make protections for immigrants a top priority once the House finishes with Biden’s economic priorities.\nThe current text of the broad tax and spending bill includes a parole option that would provide work authorization and deportation protections for some undocumented immigrants. But a more expansive measure likely wouldn’t survive in the Senate.\n“All options remain on the table, but we are not drafting new language,” Garcia said in a statement. “Speaker Pelosi shares our concerns for the immigrant community, recognizes their contributions and is committed to keeping immigration in play.”\nA last-minute change to the tax and spending plan involved the federal deduction for state and local taxes, or SALT. Instead of moving forward with a proposal to lift the $10,000 SALT cap to $72,500 through 2031, the bill will now raise it to $80,000 through 2030 according to a person familiar with the negotiations.\nThe cap would snap back to $10,000 in 2031. Compared to current law where there is no cap after 2025, the provision would raise $14.8 billion in revenue over 10 years.\nThe Senate is expected to make its own changes to the SALT proposal. Senators Bernie Sanders of Vermont and Bob Menendez of New Jersey have proposed an unlimited cap but would cut off access to the deduction for people with incomes above $400,000 to $500,000.\nDrug Pricing\nOn drug pricing, Democrats have agreed to give some drugs an extra year of exemption from price negotiations, according to a person familiar with the discussions.\nThe change means biologic drugs won’t be subject to government price negotiation until 13 years after they are approved for use, one year longer than in the provision that was initially written into the legislation.\nThat revision was made after Representative Scott Peters of California and Kathleen Rice of New York raised concerns about the language in the legislation and met with Pelosi.\nWhile the House would be giving final passage to the infrastructure legislation, the economic package still faces hurdles -- and changes -- in the Senate. If the legislation is modified there, as expected, it would have to go back to the House for another vote.\nSenate Majority Leader Chuck Schumer said senators would strive to act on the legislation “before Thanksgiving,” which falls on Nov. 25.\n‘Various Sticking Points’\nBut even that schedule may be ambitious. Senator Joe Manchin, a West Virginia Democrat, who has fought to trim the size of the package, continues to object to provisions favored by the House, such as paid family leave and immigration. He also said he wants a clearer assessment of the impact of the expansive tax and spending package on inflation and debt.\n“I have a lot of concerns, let’s put it that way,” Manchin said Wednesday night on Fox News. “They’re working off the House bill. That’s not going to be the bill I work off of.”\nSchumer said he spoke to Manchin Thursday and they both agreed to “work diligently over the break” to come up with something that can be supported by all 50 Democrats in the Senate, which will be out next week.\n“There are various sticking points,” he added.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":846569745,"gmtCreate":1636097726336,"gmtModify":1636097727100,"author":{"id":"3572489627147183","authorId":"3572489627147183","name":"TeslaLegend","avatar":"https://static.tigerbbs.com/180ad6f06095bcbf2b6594d26c494752","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3572489627147183","authorIdStr":"3572489627147183"},"htmlText":"Please like and comment. Thanks!&nbsp;","listText":"Please like and comment. 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