What’s In and What’s Out in Biden’s Package of Compromise?

It was just a year ago that President Joe Biden’s policy agenda was dead on arrival with his multi-trillion-dollar Build Back Better package. The legislation failed to pass through Congress because of two centrist Democrats in an evenly divided Senate. 

The plan that was made only through the House originally included massive provisions on climate change, healthcare, and tax reform. 

But on Sunday night, a much less expensive version of Biden’s agenda was passed by the Senate. It is known as the Inflation Reduction Act, and it will now sail through the House and probably be on the president’s desk by Friday for his final signature. 

President Biden wrote in a statement, “Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit, while making the wealthiest corporations finally pay their fair share.”

This slimmer bill costs over $1 trillion less than Build Back Better, and the Inflation Reduction Act represents months of negotiations in the back rooms of the Capitol. Even stripped way back, this bill will be positive for the White House administration in a year of mostly negatives. 

When you dissect this new bill, you see the remnants of the president’s agenda that were left in and a whole lot that was taken out. 

Biden’s Build Back Better plan included massive tax credits to offset middle-class families shifting to clean energy, and plans to help the manufacturing of clean energy components. It included the creation of the Civilian Climate Corps, a New Deal-style effort to build jobs and protect the environment. 

The revised Inflation Reduction Act is still being called the single biggest climate investment in U.S. history, by far. But it has primarily shifted to focusing on the financial benefits of investing almost $369 billion over a decade into climate change programs and clean power. 

What The Build Back Better Plan Actually Includes

The Build Back Better plan included lots of money for childcare and other social supports, but that is gone in the Inflation Reduction Act. The original legislation included an extension of the Child Tax Credit which families received through 2021. This was part of the American Rescue Plan. But this is not in the new plan. And it also doesn’t include provisions to expand child care access, support for older Americans or people with disabilities, funding for affordable housing, an expanded free school meal program, and a plan for universal preschool.

The Inflation Reduction Act does preserve some of the reform to healthcare access that was in Biden’s first plan. It caps the out-of-pocket cost of prescription drugs for seniors on Medicaid at $2,000. And it includes a cap of $35 per month on the price of insulin for Americans on Medicaid. This will not help those who are covered by private insurance. 

The negotiated bill does not expand Medicaid coverage, as the Build Back Better intended to do. But it does include a three-year extension of Affordable Care Act subsidies.

The plan for funding Build Back Better included a complete reversal of Trump-era tax cuts on corporations and wealthy Americans. This is what caused Senator Kyrsten Sinema (D-AZ) to vote against it. 

The Inflation Reduction Act includes a 15% minimum tax on the profits corporations report to shareholders, applying to companies that report more than $1 billion annually in their financial statements. Sinema’s negotiations also caused the package to not include a measure that would have limited a tax break for hedge funds and private equity companies. 

Now, there is a 1% excise tax on stock buybacks to make up for that lost revenue.

This new package also includes an $80 billion investment in the International Revenue Service to bolster its efforts to rein in tax evasion.

It’s hard to know exactly what all these give and takes will mean in the midterm elections. Before this compromise, it was bleak for Democrats. But can they now see light at the end of the midterm tunnel?

China Takes Aim at the United States Over Taiwan

China is once again flexing its muscles globally and staring down the United States as well. Military officials in the communist nation have declared to their U.S. counterparts that the

Kamala Harris Ripped for Claiming Government’s Hurricane Ian Relief Will Prioritize ‘Communities of Color,’ as Death Toll, Damage Mount

Commenters on Twitter hammered Vice President Kamala Harris for her recent speech where she stated that federal relief for Hurricane Ian will prioritize people in "communities of color" and be

Putin’s Pain in Ukraine Brought Warning About Use of Nuclear Weapons

The world is becoming more and more aware of the struggle that Russia is having with its invasion of Ukraine. The United States has now warned Moscow about the "catastrophic

Schumer

Sen. Joe Manchin Makes Sudden Reversal and Sen. Schumer Plows Ahead on Funding Bill

Sen. Joe Manchin from West Virginia just did a pretty drastic about-face on Tuesday, and it will likely help the Senate avoid a Friday night shut down.  His move enabled

Russia Grants Edward Snowden Citizenship

Russia continues in defiance of American interests. It granted citizenship this week to former American intelligence contractor Edward Snowden. He fled prosecution after revealing highly classified U.S. surveillance programs to

Senators Warn the United States is Incapable of Protecting American Innovations, Technology from Foreign Intel Agents

Several lawmakers recently voiced they feared the U.S. government is failing to protect academica, private businesses and students from foreign intelligence officers looking to steal technology and research and increase

North Korea: Denies Sending Arms to Russia Amid Its War on Ukraine

North Korea says it hasn't sent any weapons to Russia during its ongoing war against Ukraine and doesn't plan to do so, despite U.S. intelligence reports of weapons transfers. North

Some Democrats Are Questioning the Party’s ‘Risky’ Strategy of Supporting MAGA Republicans

Democrats had to face a tough question recently at a Democratic donors meeting. Some of their operatives asked about their tactics in preparing for the coming midterm elections in November.

Air Force Academy: Diversity Training Tells Cadets to Use Words that ‘Include All Genders​,’ Drop ‘Dad and Mom’

An inclusion and diversity training by the United States Air Force Academy in Colorado instructs cadets to refrain from saying things like “dad” and “mom” and use words that “include

Judge Blocks Execution in Alabama After Inmate Testifies They Lost His Paperwork

An inmate in Alabama scheduled for execution hand his death blocked by a federal judge because he claimed the state lost his paper work that requested an alternative to lethal

Americans Weigh in on Biden’s Handling of the Economy

Fox News recently interviewed people in San Francisco and New York and graded how well President Biden and his administration handled the economy. "Horrible. I don't even want to comment

Parler: Promises ‘Freedom from Censorship’ Amid Big Tech Midterm Preparations

Parler says it will be a hub for free speech leading up to the midterm elections amid ongoing efforts by tech companies to combat misinformation. The alternative social network has

Is Gavin Newsom Plotting a 2024 Run Against VP Kamala Harris?

Things are going to get pretty heated in the state of California, and we’re not talking about global warming. California Governor Gavin Newsom is planning a run for the presidency

Who Is Special Master in The Trump DOJ Case and What Will He Do?

Who is this “special master” that Judge Aileen Cannon appointed to be an independent arbiter in reviewing the documents seized from former President Donald Trump’s Mar-a-Lago estate in Florida? His

Ron DeSantis

President Biden, Administration Considering ‘Litigation’ Against Republican Governors over Illegal Migrants Sent to Democratic Cities

The Biden administration announced it would consider "litigation options" against Republican governors after illegal migrants were sent from border states to Democratic sanctuary cities. At a recent meeting, Homeland Security,

Supreme Court Reverses Decision in Religious Rights Case

The United States Supreme Court backtracked on a ruling that it made granting temporary permission for a New York Orthodox Jewish university to deny official recognition to an LGBTQ student

Trump Returns to Mar-a-Lago Home, Laments It’s Been ‘Ransacked’ by FBI Raid

Former President Donald Trump is back at his Palm Beach, Florida, Mar-a-Lago residence and is lamenting it had been "ransacked" by the FBI and would "never be the same" after

Senator Lindsey Graham Has Confidence the Public Will Get Behind His Abortion Legislation

Republican Senator Lindsey Graham from South Carolina has declared with confidence that he believes the public will support his 15-week federal abortion ban proposal. But he also expressed that it

U.S.- China Experts Warn of Possible ‘Bloody Affair for Both Sides’ If War Starts

Defense experts predict any conflict between China and the United States would be costly for both sides and would probably not produce a result in the U.S.'s favor.  "If you

Almost Half of the Nation’s Governors Send Biden a Letter on Student Loan Forgiveness

When just about half of all the governors in the nation sign a letter to the president, it’s probably significant. Twenty-two GOP governors did just that.  In a letter to

“Humanitarian Crisis” in Martha’s Vineyard = Just 0.000025% of the Border Crisis

Martha's Vineyard Chamber of Commerce claimed that 50 migrants sent by Florida Governor Ron DeSantis had caused a "humanitarian crisis" — despite the number being dwarfed by the flood of

Former Twitter Security Chief Tells Senate There Are Foreign Agents in the Company

A former security chief for Twitter just testified to Congress and he revealed that the social media platform has foreign agents embedded in the organization. He also revealed that the

Sen. Ron Johnson Cites Religious Protection, Won’t Back Same-Sex Marriage Bill

Senator Ron Johnson, R-Wis., will no longer support the same-sex marriage bill that would codify the right to same-sex marriage and increase protection for interracial and LGBT couples, citing issues

Eagle Pass Requests Refrigerators to Store Migrant Bodies after Drownings Overwhelm Mortuaries

A massive surge in migrant drownings along the southern U.S. border has "overwhelmed local funeral homes and mortuaries in Eagle Pass, Texas. According to the agency's chief, the crisis has

Democratic Nominee Opposing Governor DeSantis is Making Promises He Can’t Keep

Is Democratic gubernatorial candidate Charlie Crist of Florida writing checks he can’t pay? He promised on Friday while a guest on “The View” that he would never impose a state