Deal Reached on Tax Bill, Schumer Says

Senate Majority Leader Chuck Schumer, D-N.Y. said late Thursday that an agreement has been reached on the Inflation Reduction Act of 2022.

“I am pleased to report that we have reached an agreement on the Inflation Reduction Act that I believe will receive the support of the entire Senate Democratic conference,” Schumer said in a statement.

“I have had many productive discussions with members of our conference over the past three days and we have addressed a number of important issues they have raised,” he continued.

The deal “preserves the major components of the Inflation Reduction Act, including reducing prescription drug costs, fighting climate change, closing tax loopholes exploited by big corporations and the wealthy, and reducing the deficit by $300 billion,” Schumer said.

The final version of the reconciliation bill, he said, to be introduced Saturday, “will reflect this work and put us one step closer to enacting this historic legislation into law.”

On Wednesday, the Congressional Budget Office released its score of the bill, stating that the legislation would reduce deficits by $305 billion. CBO also said the bill would reduce net spending by almost $15 billion through 2031 and, once phased in, slightly cut net taxes by about $2 billion per year.

In a note Thursday, the committee said its estimates shows the legislation “would reduce the national debt by nearly $2 trillion over the next two decades. Even with the ACA subsidies extended, the bill would retain more than half of its net deficit reduction.”