Showdown: Democrats struggle to 'stand united' on Biden inflation bill amid Republican amendments

U.S. senators will get another chance to reconsider the Inflation Reduction Act after its initial passage Saturday, following a series of amendments proposed overnight by Republicans.

The bill passed Saturday after Vice President Kamala Harris broke the 50-50 tie vote, enabling senators to debate the legislation, which includes $400 billion in spending and $700 billion in tax increases.

The massive tax and climate bill has been opposed by every Republican in the Senate and supported by every Democrat in the chamber, including Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) who have traditionally opposed Democratic tax and spend initiatives.

After the White House reached an agreement with Manchin, Democrats made additional changes on Thursday to recruit Sinema by rescinding a proposed tax increase on carried-interest income, and by modifying the corporate minimum tax.

The bill is now in an open-ended Senate amendment process known as a vote-a-rama, the final hurdle Democrats face for passage, which must undergo a process called ‘reconciliation.’ Reconciliation will allow Democrats to push through the usual 60-vote threshold required for most bills but also requires senators to comply with the amendment process.

During that process, Republicans are taking aim at the legislation’s tax and energy components, and also made a failed attempt to reinstate Title-42, a pandemic-era policy that empowers U.S. authorities to turn away migrants applying for asylum at the border while their application is pending. Title 42 was enacted in March 2020 and rescinded in April.

Sen. Bob Menendez (D-N.J.) said Saturday he would oppose the new bill in its entirety if the Senate reinstated Title 42 during the amendment process and urged his Democratic colleagues to stand in solidarity against all amendments.

“I urge my Democratic colleagues to stand united and vote no on all amendments, regardless of the underlying policy and regardless of which party offers them,” the New Jersey senator said.

Despite his best efforts to keep his party united, cracks began to show when some Democratic senators up for reelection this year, including Democratic Sens. Catherine Cortez Masto (Nev.), Maggie Hassan (N.H.), Mark Kelly (Ariz.), Kyrsten Sinema (Ariz.) and Raphael Warnock (Ga.) voted to reinstate Title 42.

Ultimately, the amendment failed in a final vote of 56 to 44, falling short of the required 60 votes to overcome a procedural objection. Other Democratic senators echoed Menendez’s sentiments by urging their colleagues as to not to jeopardize the bill’s intact passage as is.

Sen. Sherrod Brown (D-Ohio) opposed an amendment by Sen. Bernie Sanders (I-Vermont) to broaden the child tax credit, urging Democrats instead to focus on passing what many believe will be Biden’s most significant achievement.

“This does not advance that cause because we could lose the underlying bill,” he said. “This is a fragile arrangement.”

Sanders was the first senator to propose an amendment as he asked his colleagues to consider expanding drug-pricing provisions. But that proposal was met with opposition from both Democrats and Republicans.

The bill currently enables Medicare to negotiate lower prescription drug prices and imposes a new 1% tax on stock buybacks.

If the new legislation passes the amendments hurdle Sunday evening, it will be returned to the House of Representatives for a final vote this upcoming Friday, August 12.

The Inflation Reduction Act passed muster after review by the Senate’s parliamentarian, and aims to raise more than $700 billion in tax revenue during the next 10 years. Republicans are concerned that a great deal of that money will come from a 15% minimum tax on sizable businesses and ramped up tax collection by the IRS.

The U.S. Treasury has said the new tax “is a targeted approach to ensure that the most aggressive tax avoiders are forced to bear meaningful tax liabilities,” in an April 7, 2021 government report.

Sen. Sinema has said she wants to see the bill in its final form after the amendment process. Passage of any of the proposed amendments could change the landscape of the bill’s future.