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Senate passes $700 billion ‘cutting inflation’ bill

The Senate passed the $700 Billion Inflation Cut Act on Sunday, a scaled-down version of the Build Back Better Act.

The Senate vote to pass HR 5376, otherwise known as the Inflation Reduction Act, 51-50. The legislation passed on a party line vote, with Vice President Kamala Harris breaking a tie.

“It’s been a long, hard and winding road,” Sen. Chuck Schumer (D-NY) said ahead of the vote.

The Cut Inflation Act came about after Schumer and Sen. Joe Manchin (D-WV) reached an agreement on a slimmed down version of the Build Back Better Act. The Inflation Reduction Act aims to cut the deficit and curb inflation, expand enhanced Obamacare subsidies, spend more than $300 billion on climate change programs and enable Medicare to negotiate drug prices.

Sen. Joe Manchin, DW.Va., speaks with reporters on Capitol Hill in Washington, Aug. 1, 2022. (AP Photo/J. Scott Applewhite)

House Republican Study Committee (RSC) Chairman Jim Banks (R-IN) detailed the 50 most sweeping aspects of the legislation.

Perhaps ironically for Manchin, the bill would not reduce inflation, according to the budget model from Penn Wharton and the Congressional Budget Office (CBO).

The legislation would also hit manufacturers harder with a minimum corporate tax of 15%, according to the Joint Committee on Taxation (JCT).

The Cut Inflation Act would also add more “fuel” to the “fire of inflation,” according to Rep. Jason Smith (R-MO), a senior member of the House Budget Committee. He explained that the Cut Inflation Act uses budget gimmicks and fake offsets to hide the true cost of the bill. Smith said the bill would add $114 billion to the debt after accounting for Manchin’s bogus gimmicks.

The bill is introduced in the House, where it will likely pass, barring major disputes that have yet to arise.

The House Freedom Caucus released a statement after the vote, declaring its opposition to the Cut Inflation Act:

The fact is, the Democrats’ latest spending bonanza has a lot more to do with enacting their socialist “Green New Deal” program than it does with actually helping Americans suffering from skyrocketing 9.1% inflation. A host of nonpartisan pundits all agree that this legislation will not reduce inflation, and many predict it will have the opposite effect. Worse, this bill not only distributes $369 billion in climate change special interest grants, it does so on the back of the American taxpayer. To fund their socialist agenda, Democrats are supersizing the Internal Revenue Service with $80 billion (six times the agency’s annual budget) to create an army of 87,000 new enforcement agents to target Americans with up to a million more audits a year on taxpayers earning less than $200,000 — the same middle class that suffers the most from Bidenomics’ skyrocketing inflation.

The Freedom Caucus added, “The misnamed ‘Inflation Reduction Act’ is a disaster by any measure and must be defeated.”

Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.

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