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Senate Democrats pass budget package, a victory for Biden

  • Senate Democrats pass budget package, a victory for Biden
    The final, party-line vote was 51-50, with Vice President Kamala Harris breaking the tie. Senate Democrats pass budget package, a victory for Biden
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USA
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Politics
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The Senate on Sunday afternoon passed Democrats' $750 billion health care, tax and climate bill, in a significant victory for President Joe Biden and his party.

The final, party-line vote was 51-50, with Vice President Kamala Harris breaking the tie. The package is the product of painstaking negotiations, and its final passage would give Democrats a chance to achieve major policy objectives ahead of the upcoming midterm elections.

The Democrat-controlled House, which is expected to take up the legislation on Friday, August 12, must approve the bill before Biden can sign it into law.

The sweeping bill, named the Inflation Reduction Act, would represent the largest climate investment in US history and make major changes to health policy by giving Medicare the power for the first time to negotiate the prices of certain prescription drugs and extending expiring health care subsidies for three years. The legislation would reduce the deficit, be paid for through new taxes -- including a 15% minimum tax on large corporations and a 1% tax on stock buybacks -- and boost the Internal Revenue Service's ability to collect.

It would raise over $700 billion in government revenue over 10 years and spend over $430 billion to reduce carbon emissions and extend subsidies for health insurance under the Affordable Care Act and use the rest of the new revenue to reduce the deficit.

Senate Democrats, with a narrow 50-seat majority, stayed unified to pass the legislation, using a special, filibuster-proof process to approve the measure without Republican votes. Final passage came after a marathon series of contentious amendment votes known as a "vote-a-rama" that stretched nearly 16 hours from late Saturday night until Sunday afternoon.

The estimated $740 billion package heads next to the House, where lawmakers are poised to deliver on Biden’s priorities, a stunning turnaround of what had seemed a lost and doomed effort that suddenly roared back to political life. Cheers broke out as Senate Democrats held united, 51-50, with Vice President Kamala Harris casting the tie-breaking vote after an all-night session.

“Today, Senate Democrats sided with American families over special interests,” President Joe Biden said in a statement from Rehoboth Beach, Delaware. “I ran for President promising to make government work for working families again, and that is what this bill does — period.”