Overview of the Build Back Better Act (Wikipedia)

The Build Back Better Act is a bill introduced in the 117th Congress to fulfill aspects of President Joe Biden's Build Back Better Plan. It was
spun off from the American Jobs Plan, alongside the Infrastructure Investment and Jobs Act, as a $3.5 trillion Democratic reconciliation
package that included provisions related to climate change and social policy. Following negotiations, the price was lowered to
approximately $1.7 trillion.

The revised version of the bill is estimated to cost approximately $2.2 trillion. The White House's legislative framework, the costs of which
were disputed by nonpartisan estimates, includes:

● $555 billion for clean energy and climate change provisions

● $400 billion for childcare and preschools

● $200 billion for child tax and earned income tax credits

● $150 billion for home care (for the elderly or disabled)

● $150 billion for housing

● $130 billion for Affordable Care Act credits

● $90 billion for equity and other investments

● $40 billion for higher education and workforce

● $35 billion to expand Medicare to hearing services

Specifics of the bill include:

● An increase in the SALT (state and local tax) deduction limit from $10,000 (expiring in 2026) to $80,000 (expiring in 2030)

● Universal preschool for all three and four-year-olds

● Child-care cost cap of 7% of income for parents earning up to 250% of a state's median income (including faith-based child-care that
complies with ideological requirements)

● $35-per-month limit on the cost of insulin under Medicare & limit on out-of-pocket prescription drug costs at $2,000 per year

● Hearing benefits for Medicare beneficiaries, including coverage for a new hearing aid every five years

● One year of expanded child tax credits

● A provision for 4 weeks of paid family and medical leave (included in a package drafted by the House Ways and Means Committee)

● Extended Affordable Care Act subsidies

● More than one million new affordable housing units, and modernizing existing public housing

● Expanded home care for elderly and disabled individuals through Medicaid

● Creation of 1–2 million new apprenticeship slots

● Electric car tax credit of $7,500, plus an extra $4,500 for American-made vehicles built with union labor

● New tax credits for installing solar panels or weatherizing homes

The pending payment methods are:

● $400 billion from IRS reform, including the enforcement of tax payments from taxpayers making over $400,000

● $350 billion by imposing a 15% minimum tax on foreign corporate profits

● $325 billion via a 15% corporate minimum tax (applying to corporations making over $1 billion for three consecutive years)

● $250 billion by closing a Medicare tax loophole benefiting the wealthy

● $230 billion from an adjusted gross income surcharge on the 0.02% most wealthy, applying a 5% rate for those who make $10
million, and an additional 3% surtax above $25 million

● $170 billion by reducing business losses of the wealthy

● $145 billion by repealing the 2017 tax act's rebate rule regarding prescription drugs

● $125 billion via a 1% surcharge on corporate stock buybacks

Congress sometimes uses a special legislative process called “reconciliation” to quickly advance high-priority
fiscal legislation. Created by the Congressional Budget Act of 1974, reconciliation allows for expedited
consideration of certain tax, spending, and debt limit legislation. In the Senate, reconciliation bills aren’t subject
to filibuster and the scope of amendments is limited, giving this process real advantages for enacting
controversial budget and tax measures.

Because reconciliation bills cannot be filibustered, in recent decades the reconciliation process has been used
most frequently when the same party controls the presidency, House, and Senate but lacks the 60-vote majority
in the Senate needed to overcome a filibuster.

The Congressional Budget Act permits using reconciliation for legislation that changes spending, revenues,
and/or the federal debt limit. On the spending side, reconciliation can be used to address most “mandatory” or
entitlement spending — that is, programs such as Medicare, Medicaid, federal civilian and military retirement,
SNAP (formerly known as food stamps), and farm programs — though the Budget Act specifically prohibits using
reconciliation to change the Social Security program. Mandatory spending is determined by rules set in ongoing
authorizing laws, so changing spending usually requires amending those laws.
1) In 2021, Democrats controlled the House of Representatives (221 to 213) and split the Senate 50-50
with Republicans. Democrats also controlled the White House. Explain why the president and his
party pursued their priorities (the Build Back Better Act) through budget reconciliation and not normal
legislation. The president and his party pursued their priorities because the reconciliation bills cannot
be filibustered.
 “I cannot vote to continue with this piece of legislation. I just
can’t. I’ve tried everything humanly possible. I can’t get
there,” [Democratic Senator Joe Manchin of West Virginia]
said on “Fox News Sunday.” “This is a no on this legislation. I
have tried everything I know to do. And the President has
worked diligently. He’s been wonderful to work with. He
knows I’ve had concerns and the problems I’ve had and, you
know, the thing that we should all be directing our attention
towards the variant, a Covid that we have coming back at us in
so many different aspects in different ways, it’s affecting our
lives again.”

Manchin’s support for the bill – a $1.9 trillion spending plan focused on expanding the nation’s social safety net,
reducing Americans’ childcare and health care costs, and climate change – is necessary for Democrats to pass
this legislation using a process called budget reconciliation, meaning it would only need 51 votes to pass.

In a statement his office released after the interview, Manchin reiterated he couldn’t support the legislation.

“I have always said, ‘If I can’t go back home and explain it, I can’t vote for it.’ Despite my best efforts, I cannot
explain the sweeping Build Back Better Act in West Virginia and I cannot vote to move forward on this mammoth
piece of legislation,” he said in the statement.

Manchin had previously raised multiple concerns about the legislation, which passed the Democrat-controlled
House last month. He wanted to pare down the bill in several areas, including paid family leave, a methane fee
on emissions from energy producers and a Medicare expansion to cover hearing costs. He was also seeking
changes to some provisions in the tax portion of the bill.

On the climate provisions in the legislation, Manchin had been negotiating for weeks with Senate Environment
and Public Works Chairman Tom Carper, a Democrat from Delaware. Sticking points have included when the
program would start and when it would ramp up — as well as the levels of methane companies could emit
before paying fees to the Environmental Protection Agency.

Manchin also was concerned about what the legislation would do to the nation’s rising debt and soaring
inflation that came after Congress passed a sweeping stimulus bill earlier this year, as well as the bipartisan
infrastructure bill.

2) What factors seem to most influenced Manchin’s vote in the context of this scenario: party
leadership, ideology, or constituents? Constituents

3) Was Manchin acting as a trustee, instructed delegate, or politico in this scenario? Instructed delegate
in the scenario.
In a remarkable statement attacking a member of Biden’s own party, the White House said Manchin’s
comments were “at odds with his discussions this week with the President, with White House staff, and with his
own public utterances.” The statement gives what the White House claimed were details of Manchin’s
discussions with the President; something the administration has been reluctant to do.

“On Tuesday of this week, Senator Manchin came to the White House and submitted – to the President, in
person, directly – a written outline for a Build Back Better bill that was the same size and scope as the
President’s framework, and covered many of the same priorities,” White House press secretary Jen Psaki wrote
in the statement. “While that framework was missing key priorities, we believed it could lead to a compromise
acceptable to all.”

According to Psaki, Manchin “promised to continue conversations in the days ahead, and to work with us to
reach that common ground.”

“If his comments on FOX and written statement indicate an end to that effort, they represent a sudden and
inexplicable reversal in his position, and a breach of his commitments to the President and the Senator’s
colleagues in the House and Senate,” Psaki said.

Psaki added: “Just as Senator Manchin reversed his position on Build Back Better this morning, we will continue
to press him to see if he will reverse his position yet again, to honor his prior commitments and be true to his
word,” the statement reads.

4) When the White House Press Secretary (Psaki) says that the White House will “continue to press”
Senator Manchin to reverse his position, what tactics might that include? The hard-line tactic or the
disagreement tactic because he doesn’t really agree with the bill. It may be a tactic to give him a day
to think it over.

5) In addition to “continuing to press him,” what might the president do in this situation to ensure
passage of his policy priorities? He may try to talk to Manchin in order to see what he really thinks or
if the president doesn’t talk to him then The president will send someone too.
 Inflation Reduction Act of 2022

Senate Majority Leader Chuck Schumer, D-N.Y., and

Sen. Joe Manchin, D-W.Va., have released
preliminary details of a bill to address climate
change, taxes, health care and inflation.

"After many months of negotiations, we have

finalized legislative text that will invest
approximately $300 billion in Deficit Reduction and
$369.75 billion in Energy Security and Climate
Change programs over the next 10 years," the
senators said in a joint statement. "The investments
will be fully paid for by closing tax loopholes on
wealthy individuals and corporations."

The legislation — called the Inflation Reduction Act

of 2022 — would also continue expansions to the
Affordable Care Act that passed during the
pandemic though 2025 and allow Medicare to
pursue lower drug costs by negotiating directly with
drug companies. Democrats say the plan avoids any
new taxes on families making $400,000 or less and
does not include any new taxes on small businesses.

Read the bill here.

The new agreement aims to "reduce carbon emissions

by roughly 40 percent by 2030" and address inflation
while also reducing the deficit, according to
documents released by Schumer and Manchin.
Schumer planned to submit the bill to the Senate
parliamentarian for review on Wednesday night in
order to start votes on the bill next week. Democrats
plan to pass the bill using the budget process known
as reconciliation to avoid a Republican filibuster,
provided the legislation has unanimous support among Senate Democrats. 1

6) Explain two factors that gave Sen. Manchin the power to reshape the Build Back Better Act into the
Inflation Reduction Act, which better reflected his policy priorities and preferences. two factors that
sen.Manchin used was the power of reconciliation to avoid a filibuster with the republicans. The
second factor was that he would tax loopholes to get the money he needed to make this bill work.
The loophole with the taxes showed his policy priorities because he likes to negotiate with the
president, drug companies etc.
7) Explain the role the president played in the passage of the Inflation Reduction Act. The president
played the role of introducing the bill with the build better back act which got turned around to the
inflation reduction act but the president created the idea.
1 Text from NPR article “After spiking earlier talks, Manchin agrees to new deal on climate and taxes”
(not from Politico article Biden to Senate Dems…)
 KEITH: Let's take a quick break. And when we get back,
what does this result mean for governing?

And we're back. And, Sue, Senator Warnock's victory

gives Democrats a 51-49 Senate majority. That sounds
like a previously small majority, but it is ever so slightly
larger than the 50-50 Senate with a tie break from the
vice president that they had before. But as I understand
it, it will make a big difference.

DAVIS: It does. I mean, Senate Majority Leader Chuck

Schumer called it a sigh of relief this morning -
obviously without Georgia being the contest that
decides the Senate and if - a win there was just seen as
a bonus. And it does matter. Look, the filibuster is still
very much an issue. They still do not have the votes to change that. But it does things like - it makes moving
certain things to the Senate a whole lot easier. Under a 50-50 Senate, they had what was called a power-sharing
agreement. It meant both parties had the same amount of seats on committees. Republicans could slow down
and block things like nominations and pieces of legislation and subpoenas from coming out of the committee
process.

And now, with a clear majority, Democrats will have the advantage on all of those committees. So they'll have a
little bit more ease to - and Schumer said this this morning - use that subpoena power, have oversight hearings
and - one of the particular focuses of most recent administrations - getting more judges on the bench and
getting nominees through the Judiciary Committee faster and onto the floor faster. So is it going to be a radical
difference on Capitol Hill? No. But it does make Chuck Schumer's job a whole lot easier. And around the edges, it
does make it a bit easier to run the Senate for the majority party. 2

8) What is one major impact that Sen. Warnock’s election will have on the Senate in the next term? it
breaks the tie breaker and leaves with a 51-49 difference in seats. Making the democratic join
together and have a better chance at passing bills of their choice.

9) Given what you know about the failure of the Build Back Better Act and passage of the Inflation
Reduction Act, why do you think Senate Majority Leader Chuck Schumer (D) called Warnock’s election
a “sigh of relief”? Because republicans would not agree with the inflation reduction act because it
would be using too much money causing more debt, more inflation, and higher prices on citizens. But
since there are more democratic senators on the committee then it made it easier for that bill to pass.

10) In the next Congress, will Joe Manchin wield more or less power? Explain why. I think he will have
more power because he is giving his name good attention on making acts better and improvising
them. He is good at negotiating and wants to help the people which gives him more power with the
president as well.

2 Text from NPR Politics podcast episode “Is Raphael Warnock A Good Model for Swing State Democrats?” (Dec. 7, 2022)
11) How will the new composition of the Senate impact Pres. Biden’s ability to achieve his goals? it will
make the president's ability easier to achieve his goals because he is working with pres. Biden to
achieve his goals but to also make them more realistic.