Joe Manchin

Democrats Spent $2 Trillion to Save the Economy. They Don’t Want to Talk About It.

“We in Georgia found ourselves trying to claw back from a historic pandemic, the likes of which we haven’t seen in our lifetime, which created an economic shutdown,” he said. “And now, seeing the economy open up, we’ve experienced major supply chain issues, which have contributed to rising costs.”

Direct pandemic payments were begun under Mr. Trump and continued under Mr. Biden, with no serious talk of another round after the ones delivered in the rescue plan. Most Democrats had hoped the one-year, $100 billion child credit in the rescue plan would be made permanent in a new piece of legislation.

But the credit expired, largely because Senator Joe Manchin III, Democrat of West Virginia and a key swing vote, opposed its inclusion in what would become the Inflation Reduction Act, citing concerns the additional money would exacerbate inflation.

Senator Michael Bennet, Democrat of Colorado, was one of the Senate’s most vocal cheerleaders for that credit and an architect of the version included in the rescue plan. His campaign has aired Spanish-language radio ads on the credit in his re-election campaign, targeting a group his team says is particularly favorable toward it, but no television ads. In an interview last week outside a Denver coffee shop, Mr. Bennet conceded the expiration of the credit has sapped some of its political punch.

“It certainly came up when it was here, and it certainly came up when it went away,” he said. “But it’s been some months since that was true. I think, obviously, we’d love to have that right now. Families were getting an average of 450 bucks a month. That would have defrayed a lot of inflation that they’re having to deal with.”

Mr. Biden’s advisers say the rescue plan and its components aren’t being deployed on the trail because other issues have overwhelmed them — from Mr. Biden’s long list of economic bills signed into law as well as the Supreme Court decision overturning Roe v. Wade that has galvanized the Democratic base. They acknowledge the political and economic challenge posed by rapid inflation, but say Democratic candidates are doing well to focus on direct responses to it, like the efforts to reduce costs of insulin and other prescription drugs.

Ms. Lake, the Democratic pollster, said talking more about the child credit could help re-energize Democratic voters for the midterms. Mr. Warnock’s speech in Dunwoody — an admittedly small sample — suggested otherwise.

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How a Quebec Lithium Mine May Help Make Electric Cars Affordable

About 350 miles northwest of Montreal, amid a vast pine forest, is a deep mining pit with walls of mottled rock. The pit has changed hands repeatedly and been mired in bankruptcy, but now it could help determine the future of electric vehicles.

The mine contains lithium, an indispensable ingredient in electric car batteries that is in short supply. If it opens on schedule early next year, it will be the second North American source of that metal, offering hope that badly needed raw materials can be extracted and refined close to Canadian, U.S. and Mexican auto factories, in line with Biden administration policies that aim to break China’s dominance of the battery supply chain.

Having more mines will also help contain the price of lithium, which has soared fivefold since mid-2021, pushing the cost of electric vehicles so high that they are out of reach for many drivers. The average new electric car in the United States costs about $66,000, just a few thousand dollars short of the median household income last year.

lithium mines are in various stages of development in Canada and the United States. Canada has made it a mission to become a major source of raw materials and components for electric vehicles. But most of these projects are years away from production. Even if they are able to raise the billions of dollars needed to get going, there is no guarantee they will yield enough lithium to meet the continent’s needs.

eliminate this cap and extend the tax credit until 2032; used cars will also qualify for a credit of up to $4,000.

For many people in government and the auto industry, the main concern is whether there will be enough lithium to meet soaring demand for electric vehicles.

The Inflation Reduction Act, which President Biden signed in August, has raised the stakes for the auto industry. To qualify for several incentives and subsidies in the law, which go to car buyers and automakers and are worth a total of $10,000 or more per electric vehicle, battery makers must use raw materials from North America or a country with which the United States has a trade agreement.

rising fast.

California and other states move to ban internal combustion engines. “It’s going to take everything we can do and our competitors can do over the next five years to keep up,” Mr. Norris said.

One of the first things that Sayona had to do when it took over the La Corne mine was pump out water that had filled the pit, exposing terraced walls of dark and pale stone from previous excavations. Lighter rock contains lithium.

After being blasted loose and crushed, the rock is processed in several stages to remove waste material. A short drive from the mine, inside a large building with walls of corrugated blue metal, a laser scanner uses jets of compressed air to separate light-colored lithium ore. The ore is then refined in vats filled with detergent and water, where the lithium floats to the surface and is skimmed away.

The end product looks like fine white sand but it is still only about 6 percent lithium. The rest includes aluminum, silicon and other substances. The material is sent to refineries, most of them in China, to be further purified.

Yves Desrosiers, an engineer and a senior adviser at Sayona, began working at the La Corne mine in 2012. During a tour, he expressed satisfaction at what he said were improvements made by Sayona and Piedmont. Those include better control of dust, and a plan to restore the site once the lithium runs out in a few decades.

“The productivity will be a lot better because we are correcting everything,” Mr. Desrosiers said. In a few years, the company plans to upgrade the facility to produce lithium carbonate, which contains a much higher concentration of lithium than the raw metal extracted from the ground.

The operation will get its electricity from Quebec’s abundant hydropower plants, and will use only recycled water in the separation process, Mr. Desrosiers said. Still, environmental activists are watching the project warily.

Mining is a pillar of the Quebec economy, and the area around La Corne is populated with people whose livelihoods depend on extraction of iron, nickel, copper, zinc and other metals. There is an active gold mine near the largest city in the area, Val-d’Or, or Valley of Gold.

Mining “is our life,” said Sébastien D’Astous, a metallurgist turned politician who is the mayor of Amos, a small city north of La Corne. “Everybody knows, or has in the near family, people who work in mining or for contractors.”

Most people support the lithium mine, but a significant minority oppose it, Mr. D’Astous said. Opponents fear that another lithium mine being developed by Sayona in nearby La Motte, Quebec, could contaminate an underground river.

Rodrigue Turgeon, a local lawyer and program co-leader for MiningWatch Canada, a watchdog group, has pushed to make sure the Sayona mines undergo rigorous environmental reviews. Long Point First Nation, an Indigenous group that says the mines are on its ancestral territory, wants to conduct its own environmental impact study.

Sébastien Lemire, who represents the region around La Corne in the Canadian Parliament, said he wanted to make sure that the wealth created by lithium mining flowed to the people of Quebec rather than to outside investors.

Mr. Lemire praised activists for being “vigilant” about environmental standards, but he favors the mine and drives an electric car, a Chevrolet Bolt.

“If we don’t do it,” he said at a cafe in La Corne, “we’re missing the opportunity of the electrification of transport.”

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The Flaw in Biden’s Pro-Labor Record: Uber Drivers Are Still Waiting for Help

As a part-time Lyft driver in 2020, Nicole Moore was listening carefully when Joseph R. Biden Jr., a candidate for president, said the refusal by ride-hailing companies to treat their drivers as employees “deprives these workers of legally mandated benefits and protections.”

Labor activists like Ms. Moore, who runs an advocacy group in California called Rideshare Drivers United, hoped that Mr. Biden, as president, would spearhead a flurry of activity aimed at forcing companies in the gig economy like Uber, Lyft and DoorDash to classify drivers as employees rather than independent contractors. Such a change would mean paying the drivers a minimum wage, giving them benefits and making them eligible to unionize.

Instead, a year and a half into Mr. Biden’s presidency, little has been done at the federal level to address independent contractors. Enforcement of existing labor laws has not been notably beefed up. And the president’s nominee to lead the Labor Department’s enforcement division was voted down by the Senate, including by several Democrats.

labor issues and unions, and that they have been hamstrung by a recent court decision that extended a Trump-era rule making it easier for companies like Uber to argue their workers should be classified as independent contractors under federal law.

In statements, the White House and Labor Department emphasized the importance of addressing worker misclassification but did not single out gig companies like Uber.

“The president ran on an aggressive and comprehensive approach to addressing worker misclassification,” said Alexandra LaManna, a White House spokeswoman who used to be senior communications executive at Lyft. She added, “The policy of this administration is to strengthen worker power and a solution to worker misclassification is a key part of that agenda.”

passed the Protecting the Right to Organize Act, which included language making it harder for companies to classify drivers as independent. The next month, Labor Secretary Martin J. Walsh suggested to Reuters that “in a lot of cases gig workers should be classified as employees,” sending shares of gig companies’ stock tumbling.

Mr. Weil would have investigated whether gig companies were violating labor law and sought retroactive minimum pay for drivers.

a judge threw it out. The companies were also stymied in Massachusetts. But without the threat of federal enforcement, their state-by-state approach got legislation passed this year in Washington, Georgia and Alabama.

Ms. Moore said she was pessimistic about Mr. Biden’s following through on his promises.

“That was certainly the hope,” she said. “I’m old enough to learn that you can’t pin all your hopes on any one politician.”

Kate Conger contributed reporting.

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Pace of Climate Change Sends Economists Back to Drawing Board

Economists have been examining the impact of climate change for almost as long as it’s been known to science.

In the 1970s, the Yale economist William Nordhaus began constructing a model meant to gauge the effect of warming on economic growth. The work, first published in 1992, gave rise to a field of scholarship assessing the cost to society of each ton of emitted carbon offset by the benefits of cheap power — and thus how much it was worth paying to avert it.

Dr. Nordhaus became a leading voice for a nationwide carbon tax that would discourage the use of fossil fuels and propel a transition toward more sustainable forms of energy. It remained the preferred choice of economists and business interests for decades. And in 2018, Dr. Nordhaus was honored with the Nobel Memorial Prize in Economic Sciences.

Inflation Reduction Act with its $392 billion in climate-related subsidies, one thing became very clear: The nation’s biggest initiative to address climate change is built on a different foundation from the one Dr. Nordhaus proposed.

offers tax credits, loans and grants — technology-specific carrots that have historically been seen as less efficient than the stick of penalizing carbon emissions more broadly.

The outcome reflects a larger trend in public policy, one that is prompting economists to ponder why the profession was so focused on a solution that ultimately went nowhere in Congress — and how economists could be more useful as the damage from extreme weather mounts.

A central shift in thinking, many say, is that climate change has moved faster than foreseen, and in less predictable ways, raising the urgency of government intervention. In addition, technologies like solar panels and batteries are cheap and abundant enough to enable a fuller shift away from fossil fuels, rather than slightly decreasing their use.

Robert Kopp, a climate scientist at Rutgers University, worked on developing carbon pricing methods at the Department of Energy. He thinks the relentless focus on prices, with little attention paid to direct investments, lasted too long.

California. But a federal measure in the United States, setting a cap on carbon emissions and letting companies trade their allotments, failed in 2010.

At the same time, Dr. Nordhaus’s model was drawing criticism for underestimating the havoc that climate change would wreak. Like other models, it has been revised several times, but it still relies on broad assumptions and places less value on harm to future generations than it places on harm to those today. It also doesn’t fully incorporate the risk of less likely but substantially worse trajectories of warming.

Dr. Nordhaus dismissed the criticisms. “They are all subjective and based on selective interpretation of science and economics,” he wrote in an email. “Some people hold these views, as would be expected in any controversial subject, but many others do not.”

Heather Boushey, a member of the White House’s Council of Economic Advisers who handles climate issues, says the field is learning that simply tinkering with prices won’t be enough as the climate nears catastrophic tipping points, like the evaporation of rivers, choking off whole regions and setting off a cascade of economic effects.

“So much of economics is about marginal changes,” Dr. Boushey said. “With climate, that no longer makes sense, because you have these systemic risks.” She sees her current assignment as similar to her previous work, running a think tank focused on inequality: “It profoundly alters the way people think about economics.”

To many economists, the approach pioneered by Dr. Nordhaus was increasingly out of step with the urgency that climate scientists were trying to communicate to policymakers. But a carbon tax remained at the center of a bipartisan effort on climate change, supported by a panoply of large corporations and more than 3,600 economists, that also called for removing “cumbersome regulations.”

speech in 2018, Dr. Nordhaus pegged the “optimal” carbon price — that is, the shared economic burden caused by each ton of emissions — at $43 in 2020. Gernot Wagner, a climate economist at Columbia Business School, called it a “woeful underestimate of the true cost” — noting that the prize committee’s home country already taxed carbon at $120 per ton.

another tack. Carbon prices, they reasoned, tend to hit lower-income people hardest. Even if the proceeds funded rebates to taxpayers, as many proponents recommended, similar promises by supporters of trade liberalization — that people whose jobs went offshore would get help finding new ones in a faster-growing economy — proved illusory. Besides, without government investment in low-carbon infrastructure, many people would have no alternative to continued carbon use.

“You’re saying, ‘Things are going to cost more, but we aren’t going to give you help to live with that transition,’” said Rhiana Gunn-Wright, director of climate policy at the left-leaning Roosevelt Institute and an architect of the Green New Deal. “Gas prices can go up, but the fact is, most people are locked into how much they have to travel each day.”

At the same time, the cost of technologies like solar panels and batteries for electric vehicles — in part because of huge investments by the Chinese government — was dropping within the range that would allow them to be deployed at scale.

For Ryan Kellogg, an energy economist who worked as an analyst for the oil giant BP before getting his Ph.D., that was a key realization. Leaving an economics department for the public policy school at the University of Chicago, and working with an interdisciplinary consortium including climate scientists, impressed on him two things: that fossil fuels needed to be phased out much faster than previously thought, and that it could be done at lower cost.

Just in the utility sector, for example, Dr. Kellogg recently found that carbon taxes aren’t meaningfully more efficient than subsidies or clean electricity standards in driving a full transition to wind and solar power. And as more essential devices can be powered by batteries, affordable electricity becomes paramount.

more useful for policymakers than broad, top-down economic models.

begun to look at the relationship between extreme weather and federal revenue. But because it’s still not clear how best to do that, other institutions are trying as well.

Carter Price, a mathematician at the nonprofit RAND Corporation, is working on a budget model that will incorporate the latest social science research, as well as climate science, to inform long-term policy decisions.

“This is a space where having more models early on would be better,” Dr. Price said. “Rather than someone has an assumption, that assumption goes into a model, nobody questions it and, 10 years later, we realize that assumption is pretty powerful and maybe not right.”

The larger lesson is that modern climate policy is a complex endeavor that calls for large, interdisciplinary teams — which is not historically how the economics field has operated.

“You can only do so much by writing things down on a single sheet of paper from your office at Yale,” said Dr. Kopp, of Rutgers. “That’s not how science gets done. That’s how a lot of economics gets done. But you run into limits.”

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Inflation Reduction Act Pushes Financial Incentives, Reduced Costs

The Inflation Reduction Act offers tax credits and other incentives for switching to cleaner energy alternatives.

It has been called groundbreaking and historic by some, expensive and futile by others. But the parts of the Inflation Reduction Act that deal with climate change could dramatically impact the lives of many Americans — and soon.

“The Inflation Reduction Act will add another $370 billion in clean energy tax credits in reconciliation, including incentives to accelerate domestic production of solar panels, wind turbines, batteries and critical materials process,” President Joe Biden said.

Tackling climate change has been debated for so long that many Americans might be inclined to chalk these words and actions up to more political chatter with little results.

“It’s because American people want their government to do something so they can go into August recess and they can get ready for elections and really brag about so many things,” Haddad Media CEO Tammy Haddad said. “If you read every single poll — and you don’t have to read a poll, you can talk to your neighbor — things are bad. The weather is bad. You can’t get what you want. Should I wear a mask? Shouldn’t I wear a mask? All of these things. And then finally, from the government comes certainty.”

Here is how you may feel the impact of the legislation.

If you already own an electric vehicle, you are probably already seeing huge savings. Currently, EV drivers receive a $7,500 tax credit for a new vehicle and a $4,000 tax credit for used vehicles. This legislation extends that tax credit until the end of 2032, with the hope of providing a greater incentive for drivers to switch from gas to electric.

Despite the lucrative switch to plug-ins, there are some hurdles that might keep you years away from purchasing an electric vehicle, like supply chain. According to the Wall Street Journal, China alone currently regulates 75% of all lithium-ion battery cell manufacturing. That’s why Sen. Joe Manchin insists the tax credit will force automakers to move their EV supply chain away from China and to the U.S.

For consumers looking to purchase larger electric vehicles like trucks, vans and SUVs, there is a cost threshold. The cost of the vehicle must be under $80,000 to see those savings. And there are also income limits. People have to make under $150,000 to take advantage of the tax credit.

As the temperatures rise and fall around the world, the demand to cool and heat us in extreme condition will likely grow.

According to a study by The Climate Institute, 20% of the total electricity use in buildings around the world goes toward air conditioning units and electric fans.

The legislation will provide a tax credit that covers 30% the cost of installing energy efficient air conditioners, water heaters, furnaces and other cooling and heating equipment. Savings could be as high as $1,200 per household.

For low- and moderate-income households, this legislation could provide up to $14,000 to cover the upgrade cost of your appliances.

For homes with outdated windows and doors, you can receive up to $1,200 in rebates a year to upgrade your home over the next 10 years.

The legislation will also cover up to 30% of the pricey installation cost of a solar panel system to your home, saving you nearly $6,000.

Source: newsy.com

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President Biden Signs Massive Climate And Health Care Legislation

President Joe Biden signed Democrats’ landmark climate change and health care bill into law on Tuesday.

President Joe Biden signed Democrats’ landmark climate change and health care bill into law on Tuesday, delivering what he has called the “final piece” of his pared-down domestic agenda, as he aims to boost his party’s standing with voters less than three months before the midterm elections.

The legislation includes the most substantial federal investment in history to fight climate change — some $375 billion over the decade — and would cap prescription drug costs at $2,000 out-of-pocket annually for Medicare recipients. It also would help an estimated 13 million Americans pay for health care insurance by extending subsidies provided during the coronavirus pandemic.

The measure is paid for by new taxes on large companies and stepped-up IRS enforcement of wealthy individuals and entities, with additional funds going to reduce the federal deficit.

In a triumphant signing event at the White House, President Biden pointed to the law as proof that democracy — no matter how long or messy the process — can still deliver for voters in America as he road-tested a line he will likely repeat later this fall ahead of the midterms: “The American people won, and the special interests lost.”

“In this historic moment, Democrats sided with the American people, and every single Republican in the Congress sided with the special interests in this vote,” President Biden said, repeatedly seizing on the contrast between his party and the GOP. “Every single one.”

The House on Friday approved the measure on a party-line 220-207 vote. It passed the Senate days earlier with Vice President Kamala Harris breaking a 50-50 tie in that chamber.

“In normal times, getting these bills done would be a huge achievement,” Senate Majority Leader Chuck Schumer, D-N.Y., said during the White House ceremony. “But to do it now, with only 50 Democratic votes in the Senate, over an intransigent Republican minority, is nothing short of amazing.”

President Biden signed the bill into law during a small ceremony in the State Dining Room of the White House, sandwiched between his return from a six-day beachside vacation in South Carolina and his departure for his home in Wilmington, Delaware. He plans to hold a larger “celebration” for the legislation on Sept. 6 once lawmakers return to Washington.

The signing caps a spurt of legislative productivity for President Biden and Congress, who in three months have approved legislation on veterans’ benefits, the semiconductor industry and gun checks for young buyers. The president and lawmakers have also responded to Russia’s invasion of Ukraine and overwhelmingly supported NATO membership for Sweden and Finland.

With President Biden’s approval rating lagging, Democrats are hoping that the string of successes will jump-start their chances of maintaining control in Washington in the November midterms. The 79-year-old president aims to restore his own standing with voters as he contemplates a reelection bid.

The White House announced Monday that it was going to deploy President Biden and members of his Cabinet on a “Building a Better America Tour” to promote the recent victories. One of President Biden’s trips will be to Ohio, where he’ll view the groundbreaking of a semiconductor plant that will benefit from the recent law to bolster production of such computer chips. He will also stop in Pennsylvania to promote his administration’s plan for safer communities, a visit that had been planned the same day he tested positive for COVID-19 last month.

“In the coming weeks, the President will host a Cabinet meeting focused on implementing the Inflation Reduction Act, will travel across the country to highlight how the bill will help the American people, and will host an event to celebrate the enactment of the bill at the White House on September 6th,” the White House said in a statement.

Republicans say the legislation’s new business taxes will increase prices, worsening the nation’s bout with its highest inflation since 1981. Though Democrats have labeled the measure the Inflation Reduction Act, nonpartisan analysts say it will have a barely perceptible impact on prices.

Senate Minority Whip John Thune, R-S.D., on Tuesday continued those same criticisms, although he acknowledged there would be “benefit” through extensions on tax credits for renewable energy projects like solar and wind.

“I think it’s too much spending, too much taxing, and in my view wrong priorities, and a super-charged, super-sized IRS that is going to be going after a lot of not just high-income taxpayers but a lot of mid-income taxpayers,” said Thune, speaking at a Chamber of Commerce event in Sioux Falls. The administration has disputed that anyone but high earners will face increased tax scrutiny, with Treasury Secretary Janet Yellen directing the tax agency to focus solely on businesses and people earning more than $400,000 per year for the new audits.

The measure is a slimmed-down version of the more ambitious plan to supercharge environment and social programs that President Biden and his party unveiled early last year.

President Biden’s initial 10-year, $3.5 trillion proposal also envisioned free prekindergarten, paid family and medical leave, expanded Medicare benefits and eased immigration restrictions. That crashed after centrist Sen. Joe Manchin, D-W.Va., said it was too costly, using the leverage every Democrat has in the evenly divided Senate.

During the signing event, President Biden addressed Manchin, who struck the critical deal with Schumer on the package last month, saying, “Joe, I never had a doubt” as the crowd chuckled.

Though the law is considerably smaller than their initial ambitions, President Biden and Democrats are hailing the legislation as a once-in-a-generation investment in addressing the long-term effects of climate change, as well as drought in the nation’s West.

The bill will direct spending, tax credits and loans to bolster technology like solar panels, consumer efforts to improve home energy efficiency, emission-reducing equipment for coal- and gas-powered power plants, and air pollution controls for farms, ports and low-income communities.

Another $64 billion would help 13 million people pay premiums over the next three years for privately bought health insurance under the Affordable Care Act. Medicare would gain the power to negotiate its costs for pharmaceuticals, initially in 2026 for only 10 drugs. Medicare beneficiaries’ out-of-pocket prescription costs would be limited to $2,000 annually starting in 2025, and beginning next year would pay no more than $35 monthly for insulin, the costly diabetes drug.

Rep. Jim Clyburn, D-S.C., a powerful political ally to President Biden, noted during the White House ceremony that his late wife, Emily, who battled diabetes for three decades, would be “beyond joy” if she were alive today because of the insulin cap.

“Many seem surprised at your successes,” Clyburn told President Biden. “I am not. I know you.”

Additional reporting by The Associated Press.

Source: newsy.com

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Biden To Sign Massive Climate And Health Care Legislation

By Associated Press
August 16, 2022

The legislation includes the most substantial federal investment in history to fight climate change and would cap prescription drug costs.

President Joe Biden will sign Democrats’ landmark climate change and health care bill on Tuesday, delivering what he has called the “final piece” of his pared-down domestic agenda, as he aims to boost his party’s standing with voters less than three months before the midterm elections.

The measure is paid for by new taxes on large companies and stepped-up IRS enforcement of wealthy individuals and entities, with additional funds going to reduce the federal deficit.

The House on Friday approved the measure on a party-line 220-207 vote. It passed the Senate days earlier with Vice President Kamala Harris breaking a 50-50 tie in that chamber.

President Biden is set to sign the bill during a small ceremony in the State Dining Room of the White House, sandwiched between his return from a six-day beachside vacation in South Carolina and his departure for his home in Wilmington, Delaware. He plans to hold a larger “celebration” for the legislation on Sept. 6 once lawmakers return to Washington.

The White House announced Monday that it was going to deploy President Biden and members of his Cabinet on a “Building a Better America Tour” to promote the recent victories, though the administration has yet to announce specific travel by the president.

The measure is a slimmed-down version of the more ambitious plan to supercharge environment and social programs that President Biden and his party unveiled early last year.

President Biden’s initial 10-year, $3.5 trillion proposal also envisioned free prekindergarten, paid family and medical leave, expanded Medicare benefits and eased immigration restrictions. That crashed after centrist Sen. Joe Manchin, a Democrat, said it was too costly, using the leverage every Democrat has in the evenly divided Senate.

Still, President Biden and Democrats are hailing the legislation as a once-in-a-generation investment in addressing the long-term effects of climate change, as well as drought in the nation’s West.

Additional reporting by the Associated Press.

Source: newsy.com

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Congress OKs Dems’ Climate, Health Bill, A Biden Triumph

The House used a party-line 220-207 vote to pass the legislation.

A divided Congress gave final approval Friday to Democrats’ flagship climate and health care bill, handing President Joe Biden a back-from-the-dead triumph on coveted priorities that the party hopes will bolster their prospects for keeping their hold on Congress in November’s elections.

The House used a party-line 220-207 vote to pass the legislation, which is but a shadow of the larger, more ambitious plan to supercharge environment and social programs that President Biden and his party envisioned early last year. Even so, Democrats happily declared victory on top-tier goals like providing Congress’ largest ever investment in curbing carbon emissions, reining in pharmaceutical costs and taxing large companies, a vote they believe will show they can wring accomplishments from a routinely gridlocked Washington that often disillusions voters.

“Today is a day of celebration, a day we take another giant step in our momentous agenda,” said House Speaker Nancy Pelosi, D-Calif. She said the measure “meets the moment, ensuring that our families thrive and that our planet survives.”

Republicans solidly opposed the legislation, calling it a cornucopia of wasteful liberal daydreams that would raise taxes and families’ living costs. They did the same Sunday but Senate Democrats banded together and used Vice President Kamala Harris’ tiebreaking vote t o power the measure through that 50-50 chamber.

“Democrats, more than any other majority in history, are addicted to spending other people’s money, regardless of what we as a country can afford,” said House Minority Leader Kevin McCarthy, R-Calif. “I can almost see glee in their eyes.”

Still, the final legislation remained substantive. Its pillar is about $375 billion over 10 years to encourage industry and consumers to shift from carbon-emitting to cleaner forms of energy. That includes $4 billion to cope with the West’s catastrophic drought.

Spending, tax credits and loans would bolster technology like solar panels, consumer efforts to improve home energy efficiency, emission-reducing equipment for coal- and gas-powered power plants and air pollution controls for farms, ports and low-income communities.

Another $64 billion would help 13 million people pay premiums over the next three years for privately bought health insurance. Medicare would gain the power to negotiate its costs for pharmaceuticals, initially in 2026 for only 10 drugs. Medicare beneficiaries’ out-of-pocket prescription costs would be limited to $2,000 starting in 2025, and beginning next year would pay no more than $35 monthly for insulin, the costly diabetes drug.

The bill would raise around $740 billion in revenue over the decade, over a third from government savings from lower drug prices. More would flow from higher taxes on some $1 billion corporations, levies on companies that repurchase their own stock and stronger IRS tax collections. About $300 billion would remain to defray budget deficits, a sliver of the period’s projected $16 trillion total.

Against the backdrop of GOP attacks on the FBI for its court-empowered search of former President Donald Trump’s Florida estate for sensitive documents, Republicans repeatedly savaged the bill’s boost to the IRS budget. That is aimed at collecting an estimated $120 billion in unpaid taxes over the coming decade, and Republicans have misleadingly claimed that the IRS will hire 87,000 agents to target average families.

Rep. Andrew Clyde, R-Ga., said Democrats would also “weaponize” the IRS with agents, “many of whom will be trained in the use of deadly force, to go after any American citizen.” Sen. Chuck Grassley, R-Iowa, asked Thursday on “Fox and Friends” if there would be an IRS “strike force that goes in with AK-15s already loaded, ready to shoot some small business person.”

Few IRS personnel are armed, and Democrats say the bill’s $80 billion, 10-year budget increase would be to replace waves of retirees, not just agents, and modernize equipment. They have said typical families and small businesses would not be targeted, with Treasury Secretary Janet Yellen directing the IRS this week to not “increase the share of small business or households below the $400,000 threshold” that would be audited.

Republicans say the legislation’s new business taxes will increase prices, worsening the nation’s bout with its worst inflation since 1981. Though Democrats have labeled the measure the Inflation Reduction Act, nonpartisan analysts say it will have a barely perceptible impact on prices.

The GOP also says the bill would raise taxes on lower- and middle-income families. An analysis by Congress’ nonpartisan Joint Committee on Taxation, which didn’t include the bill’s tax breaks for health care and energy, estimated that the corporate tax boosts would marginally affect those taxpayers but indirectly, partly due to lower stock prices and wages.

The bill caps three months in which Congress has approved legislation on veterans’ benefits, the semiconductor industry, gun checks for young buyers and Ukraine’s invasion by Russia and adding Sweden and Finland to NATO. All passed with bipartisan support, suggesting Republicans also want to display their productive side.

It’s unclear whether voters will reward Democrats for the legislation after months of painfully high inflation dominating voters’ attention and President Biden’s dangerously low popularity with the public and a steady history of midterm elections that batter the party holding the White House.

The bill had its roots in early 2021, after Congress approved a $1.9 trillion measure over GOP opposition to combat the pandemic-induced economic downturn. Emboldened, the new president and his party reached further.

They called their $3.5 trillion plan Build Back Better. Besides social and environment initiatives, it proposed rolling back Trump-era tax breaks for the rich and corporations and $555 billion for climate efforts, well above the resources in Friday’s legislation.

With Manchin opposing those amounts, it was sliced to a roughly $2 trillion measure that Democrats moved through the House in November. He unexpectedly sank that bill too, earning scorn from exasperated fellow Democrats from Capitol Hill and the White House.

Last gasp talks between Manchin and Senate Majority Leader Chuck Schumer, D-N.Y., seemed fruitless until the two unexpectedly announced agreement last month on the new package.

Manchin won billions for carbon capture technology for the fossil fuel industries he champions, plus procedures for more oil drilling on federal lands and promises for faster energy project permitting. Centrist Sen. Kyrsten Sinema, D-Ariz., also won concessions, eliminating planned higher taxes on hedge fund managers and helping win the drought funds.

Additional reporting by The Associated Press.

Source: newsy.com

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House Dems Set To Overcome GOP For Climate, Health Care Win

The GOP opposes the bill, but the same was true Sunday when Dems used Vice President Harris’ tie-breaking vote to power it through the 50-50 Senate.

A flagship Democratic economic bill perched on the edge of House passage Friday, placing President Joe Biden on the brink of a back-from-the-dead triumph on his climate, health and tax goals that could energize his party ahead of November’s elections.

Democrats were poised to muscle the measure through the narrowly divided House Friday over solid Republican opposition. They employed similar party unity and Vice President Kamala Harris’ tie-breaking vote Sunday to power the measure through the 50-50 Senate.

The package is but a shadow of President Biden’s initial vision and was produced only after a year of often bitter infighting between party leaders, progressives and centrists led by Sen. Joe Manchin, empowered by that chamber’s even split. Ultimately, Democrats thirsty to declare victory forged a compromise on abiding goals like reining in pharmaceutical costs, taxing large companies and, especially, curbing carbon emissions. They are hoping to show they can wring accomplishments from an often fractiously gridlocked Washington that alienates many voters.

“Climate is a health issue. It’s a jobs issue. It’s a security issue. And it’s a values issue for us,” House Speaker Nancy Pelosi told reporters this week. “I want more, of course, we always want more, but this is a great deal.”

The bill’s pillar is about $375 billion over 10 years to encourage industry and consumers to shift from carbon-emitting to cleaner forms of energy, hailed by experts as Congress’ biggest climate investment ever. That includes $4 billion added to cope with the West’s catastrophic drought.

In a pair of top Democratic health priorities, another $64 billion would help 13 million people pay premiums over the next three years for privately bought health insurance. Medicare would gain the power to negotiate its costs for pharmaceuticals, initially in 2026 for only 10 drugs. Medicare beneficiaries’ out-of-pocket prescription costs would be limited to $2,000 starting in 2025, and starting next year they would pay no more than $35 monthly for insulin, the costly diabetes drug.

The bill would raise around $740 billion in revenue over the decade, over a third from government savings from lower drug prices. More would flow from higher taxes on some $1 billion corporations, levies on companies that repurchase their own stock and stronger IRS tax collections. Around $300 billion would remain to defray budget deficits, a fraction of the period’s projected total of $16 trillion.

Republicans say the legislation’s tax hikes will force companies to raise prices, worsening the nation’s bout with its worst inflation since 1981 that is wounding Democrats’ election prospects. Nonpartisan analysts say the measure will have negligible inflation impact one way or the other.

Echoing other culture war themes, the GOP has criticized initiatives like tax breaks for clean energy and electric vehicles as wasteful liberal daydreams. “If the Green New Deal and corporate welfare had a baby, it would look like this,” said Rep. Kevin Brady of Texas, the House Ways and Means Committee’s top Republican.

Republicans say Democrats’ plan to expand the IRS budget, aimed at collecting about $120 billion in unpaid taxes, envisions 87,000 agents who’d be coming after families. Democrats called foul, saying their $80 billion IRS budget boost would be to replace waves of retirees, not just agents, and to modernize equipment, and say families and small businesses earning below $400,000 annually would not be targeted.

The bill caps a fertile three months in which Congress has voted to improve veterans’ health benefits, gird the semiconductor industry, moderately strengthen gun restrictions for younger buyers, finance Ukraine’s war with Russia and add Finland and Sweden to NATO. All passed with bipartisan support, suggesting Republicans also want to display their productive side.

It’s unclear voters will reward Democrats for the legislation after months of painfully high inflation dominating voters’ attention. Though record gasoline prices have dipped, President Biden’s popularity dangles damagingly low and midterm elections have a consistent history of ending careers of lawmakers from the party that holds the White House.

Democrats’ economic bill had its roots in early 2021, after Congress approved a $1.9 trillion measure over GOP opposition to combat the pandemic-induced economic downturn. Emboldened, the new president and his party reached further.

They initially produced an ambitious 10-year, $3.5 trillion environment and social plan they called Build Back Better. It featured free prekindergarten, paid family and medical leave, expanded Medicare benefits, increases for education and housing and an easing of immigration restrictions. It sought to roll back Trump-era tax breaks for the rich and corporations and proposed $555 billion for climate efforts, well above the resources in Friday’s legislation.

With Manchin opposing those amounts, it was sliced to a roughly $2 trillion measure that Democrats moved through the House in November. Just before Christmas, Manchin unexpectedly sank that bill, citing fears of inflation and international uncertainty and earning brickbats from exasperated fellow Democrats from Capitol Hill and the White House.

With on-and-off closed-door talks between Manchin and Senate Majority Leader Chuck Schumer, seemingly dying, the two lawmakers shocked Washington and announced agreement last month on the new, pared-down package.

Centrist Sen. Kyrsten Sinema also used her leverage for late concessions, eliminating planned higher taxes on hedge fund managers and helping win the drought funds.

Additional reporting by The Associated Press.

Source: newsy.com

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Electric Cars Are Too Costly for Many, Even With Aid in Climate Bill

Policymakers in Washington are promoting electric vehicles as a solution to climate change. But an uncomfortable truth remains: Battery-powered cars are much too expensive for a vast majority of Americans.

Congress has begun trying to address that problem. The climate and energy package passed on Sunday by the Senate, the Inflation Reduction Act, would give buyers of used electric cars a tax credit.

But automakers have complained that the credit would apply to only a narrow slice of vehicles, at least initially, largely because of domestic sourcing requirements. And experts say broader steps are needed to make electric cars more affordable and to get enough of them on the road to put a serious dent in greenhouse gas emissions.

would eliminate this cap and extend the tax credit until 2032; used cars would also qualify for a credit of up to $4,000.

Energy industry. The bill would provide billions of dollars in rebates for Americans who buy energy efficient and electric appliances as well as tax credits for companies that build new sources of emissions-free electricity. The package also sets aside $60 billion to encourage clean energy manufacturing and requires businesses to pay a penalty for methane emissions that exceed federal limits starting in 2024.

With so much demand, carmakers have little reason to target budget-minded buyers. Economy car stalwarts like Toyota and Honda are not yet selling significant numbers of all-electric models in the United States. Scarcity has been good for Ford, Mercedes-Benz and other carmakers that are selling fewer cars than before the pandemic but recording fat profits.

Automakers are “not giving any more discounts because demand is higher than the supply,” said Axel Schmidt, a senior managing director at Accenture who oversees the consulting firm’s automotive division. “The general trend currently is no one is interested in low prices.”

Advertised prices for electric vehicles tend to start around $40,000, not including a federal tax credit of $7,500. Good luck finding an electric car at that semi-affordable price.

Ford has stopped taking orders for Lightning electric pickups, with an advertised starting price of about $40,000, because it can’t make them fast enough. Hyundai advertises that its electric Ioniq 5 starts at about $40,000. But the cheapest models available from dealers in the New York area, based on a search of the company’s website, were around $49,000 before taxes.

Tesla’s Model 3, which the company began producing in 2017, was supposed to be an electric car for average folks, with a base price of $35,000. But Tesla has since raised the price for the cheapest version to $47,000.

pass the House, would give buyers of used cars a tax credit of up to $4,000. The used-car market is twice the size of the new-car market and is where most people get their rides.

But the tax credit for used cars would apply only to those sold for $25,000 or less. Less than 20 percent of used electric vehicles fit that category, said Scott Case, chief executive of Recurrent, a research firm focused on the used-vehicle market.

The supply of secondhand vehicles will grow over time, Mr. Case said. He noted that the Model 3, which has sold more than any other electric car, became widely available only in 2018. New-car buyers typically keep their vehicles three or four years before trading them in.

SAIC’s MG unit sells an electric S.U.V. in Europe for about $31,000 before incentives.

New battery designs offer hope for cheaper electric cars but will take years to appear in lower-priced models. Predictably, next-generation batteries that charge faster and go farther are likely to appear first in luxury cars, like those from Porsche and Mercedes.

Companies working on these advanced technologies argue that they will ultimately reduce costs for everyone by packing more energy into smaller packages. A smaller battery saves weight and cuts the cost of cooling systems, brakes and other components because they can be designed for a lighter car.

“You can actually decrease everything else,” said Justin Mirro, chief executive of Kensington Capital Acquisition, which helped the battery maker QuantumScape go public and is preparing a stock market listing for the fledgling battery maker Amprius Technologies. “It just has this multiplier effect.”

$45 million in grants to firms or researchers working on batteries that, among other things, would last longer, to create a bigger supply of used vehicles.

“We also need cheaper batteries, and batteries that charge faster and work better in the winter,” said Halle Cheeseman, a program director who focuses on batteries at the Advanced Research Projects Agency-Energy, part of the Department of Energy.

Gene Berdichevsky, chief executive of Sila Nanotechnologies, a California company working on next-generation battery technology, argues that prices are following a curve like the one solar cells did. Prices for solar panels ticked up when demand began to take off, but soon resumed a steady decline.

The first car to use Sila’s technology will be a Mercedes luxury S.U.V. But Mr. Berdichevsky said: “I’m not in this to make toys for the rich. I’m here to make all cars go electric.”

A few manufacturers offer cars aimed at the less wealthy. A Chevrolet Bolt, a utilitarian hatchback, lists for $25,600 before incentives. Volkswagen said this month that the entry-level version of its 2023 ID.4 electric sport utility vehicle, which the German carmaker has begun manufacturing at its factory in Chattanooga, Tenn., will start at $37,500, or around $30,000 if it qualifies for the federal tax credit.

Then there is the Wuling Hongguang Mini EV, produced in China by a joint venture of General Motors and the Chinese automakers SAIC and Wuling. The car reportedly outsells the Tesla Model 3 in China. While the $4,500 price tag is unbeatable, it is unlikely that many Americans would buy a car with a top speed of barely 60 miles per hour and a range slightly over 100 miles. There is no sign that the car will be exported to the United States.

Eventually, Ms. Bailo of the Center for Automotive Research said, carmakers will run out of well-heeled buyers and aim at the other 95 percent.

“They listen to their customers,” she said. “Eventually that demand from high-income earners is going to abate.”

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