Senate Democrats passed their climate and healthcare spending package on Sunday, sending the legislation to the House and bringing Joe Biden one step closer to a significant legislative victory ahead of crucial midterm elections in November.
The legislation includes a number of tax provisions to cover the costs of these policies, bringing in $739bn for the government and resulting in an overall deficit reduction of roughly $300bn. The policy changes include a new corporate minimum tax, a 1% excise tax on stock buybacks and stricter enforcement by the Internal Revenue Service.
Because Democrats used the reconciliation process to advance the bill, they needed only a simple majority to pass the proposal, allowing them to avoid a Republican filibuster.
Still, Democrats celebrated that the Senate parliamentarian allowed most of their healthcare and climate provisions to move forward.
Democratic leaders previously had to alter the tax provisions of the bill to secure the vote of Kyrsten Sinema of Arizona, who announced her support for the proposal on Thursday.
Sinema caused some last-minute hand-wringing among Democrats on Sunday, as she pushed for changes to the new corporate minimum tax that would exempt some businesses from the policy. Democratic senators ultimately reached an agreement with Sinema to approve the exemption, which was paid for by extending loss limitations for pass-through businesses.
The resulting bill was able to win the support of the entire Senate Democratic caucus on Sunday, even though the legislation is much smaller in scope than the Build Back Better Act.
