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Dan Newhouse, Republican congressman who voted to impeach Trump, wins primary, CNN projects


Washington
CNN

Republican Rep. Dan Newhouse and Democrat Doug White will advance to the general election out of the top-two primary in Washington’s 4th Congressional District, CNN projects.

Newhouse is one of the 10 Republican House members who voted for then-President Donald Trump’s impeachment in January 2021 following the attack on the US Capitol. Trump had endorsed Republican challenger Loren Culp in the district.

Washington holds open primaries in which all candidates, regardless of party, appear on the same ballot, with the top two finishers advancing to the November general election.

Despite facing anger from his own party over his impeachment vote, Newhouse had a number of factors going his way this week: The incumbent handily outspent his challengers, the field was large and fractured, and Washington state’s open primary system allowed people to vote for any candidate, regardless of affiliation.

Newhouse’s victory is a loss for Trump, who made defeating the 10 House Republicans who joined Democrats to impeach him a central goal to his post-presidency. By moving on from the primary, Newhouse is likely to keep his congressional seat from him. His district of him, which stretches from Washington’s borders with Oregon and Canada, overwhelmingly leans toward Republicans.

Aside from White and Culp, the field also included former NASCAR driver Jerrod Sessler and state Rep. Brad Klippert.

Local Republican operatives, many of whom censored and criticized Newhouse after his impeachment vote, worried that many people had moved on from impeachment and caused Republicans to focus on other issues as they went to the polls on Tuesday. Newhouse also seized on his agriculture expertise, using it to appeal in the largely rural district and draw some of the focus away from impeachment.

This story has been updated with additional background information.

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Lind Fire fully contained after destroying several homes, seriously injured firefighter recovering | News

LIND, Wash. – After destroying 14 structures Thursday, the Adams County Sheriff’s Office (SCSO) said the Lind Fire is now fully contained.

ACSO said the firefighter who was airlifted to Spokane is now home with his family and recovering.

Local crews are mopping up and monitoring hot spots.

Last Updated: August 5 at 10:30 am

In a statewide briefing, Washington Department of Natural Resource (DNR) officials said the Lind Fire is not yet contained but is “looking really good.”

DNR said firefighting progress is moving in the right direction and they are optimistic that there will be no more damage to structures.

Last Updated: August 5 at 8:30 am

All evacuations have now been lifted for the Lind Fire, after 14 structures, including six homes and eight other structures, were lost to a quick-moving wildfire. Officials say the fire is now contained and under control, but crews will work through the night to make sure it doesn’t spark back up.

State fire assistance was put in place to support local firefighters who are working to contain it. Ground and air support responded to the fire.

The fire started on the south side of the town and began approaching homes. Adams County Sheriff’s Office (ACSO) and Washington State Patrol (WSP) crews are helping with evacuations.







Entire town of Lind being evacuated, 10 homes already lost to quick-moving wildfire




Highway 395 was closed in both directions as well as SR 21 but has since been reopened.

The Red Cross was assisting displaced people at the Ritzville Elementary School.

The cause of the fire is under investigation.

This is a breaking news story and will be updated as more information becomes available. Check back for updates.

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GOP Rep who voted to impeach advances in Washington primary

OLYMPIA, Wash. (AP) — Republican Rep. Dan Newhouse, who voted to impeach Donald Trump, advanced Friday to the general election following days of vote counts in Washington state’s primary, but fellow Republican Rep. Jaime Herrera Beutler saw her advantage against an opponent endorsed by Trump rapidly shrink to within recount territory with thousands of votes left to count.

Both drew interparty challenges due to their vote to impeach Trump following the Jan. 6 attack on the US Capitol.

Newhouse, the four-term incumbent in the 4th Congressional District in central Washington and Democrat Doug White were essentially tied, with each capturing about 25% of the vote on a crowded ballot. White also advanced to the fall ballot. Loren Culp, a Trump-endorsed former small town police chief who lost the 2020 governor’s race to Democrat Jay Inslee, was at about 21%.

In the 3rd Congressional District in southwestern Washington, Democrat Marie Perez was the top vote getter, with 31% of the vote. Herrera Beutler, who had about 24% on Tuesday night, dropped to 22.6% Thursday night, 257 votes ahead of Joe Kent – ​​a former Green Beret endorsed by Trump — who was at 22.5%.

A mandatory recount would occur if the margin of votes between the No. 2 and No. 3 candidates is less than half of 1% and closer than 2,000 votes.

Because Washington is a vote-by-mail state and ballots just need to be in by Election Day, it often takes days to learn final results in close races as ballots arrive at county election offices throughout the week.

An estimated 35,000 votes are left to count, and the three counties where votes remain to be counted — the majority of it in the 3rd District’s largest county, Clark, — won’t update their tallies again until late Monday afternoon. Counties have until Aug. 16 to finish their count and for canvassing boards to certify the results, followed by certification by the secretary of state by Aug. 19.

Under Washington’s primary system, all candidates run on the same ballot, and the top two vote getters in each of Tuesday’s races advance to the November election, regardless of party.

Of the 10 House Republicans who voted for Trump’s impeachment, four opted not to run for reelection. Michigan Rep. Peter Meijer was defeated in a primary Tuesday by Trump-endorsed John Gibbs and Rep. Tom Rice of South Carolina lost to a Trump-endorsed challenger in June. Rep. David Valadao of California — which has an open primary like Washington — survived a primary challenge. Rep. Liz Cheney of Wyoming is bracing for defeat in her Aug. 16 primary against a Trump-backed rival.

In another key match in the 8th Congressional District, incumbent Democratic Rep. Kim Schrier advanced to the November ballot with more than 47% of the vote, and will face former state attorney general candidate Matt Larkin in November.

With about 17% of the vote, Larkin edged out King County Council Member Reagan Dunn, a former federal prosecutor whose mother once held the seat. Dunn granted the race Thursday. The district is a key target of GOP efforts to retake control of the House.

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Indiana becomes first state post-Roe to pass law banning most abortions

The Indiana House and Senate passed the GOP-sponsored bill earlier on Friday.

The bill would provide exceptions for when the life of the mother is at risk and for fatal fetal anomalies, up to 20 weeks post-fertilization. It would also allow exceptions for some abortions if the pregnancy was a result of rape or incest.

Indiana presently allows abortions up to 20 weeks after fertilization (or 22 weeks after the mother’s last menstrual period). The new law will go into effect on September 15.

On Thursday, the House rejected Republican-sponsored amendments that would have removed the exceptions for rape, incest and fatal fetal anomalies from the bill. Members of House Republican leadership were divided as Speaker Todd Huston and Speaker Pro Tempore Mike Karickhoff voted against the amendments, while Majority Leader Matt Lehman backed the amendments.

A House amendment also failed on Thursday that would have placed a non-binding question on the 2022 general election ballot as to whether abortion should remain legal in Indiana.

emotional discussion

Friday’s vote in the state House followed an emotional and sometimes contentious debate during which protesters’ cheers and jeers could be heard amid lawmakers’ speeches.

GOP House Rep. John Jacob of Indianapolis, who supports a total ban on abortion, said on the House floor Friday said he would not support the bill because it “regulates abortion which is baby murder,” while calling on his colleagues to repent before God .

Democratic Rep. Renee Pack of Indianapolis later fired back at Jacob and spoke of her own abortion in 1990 when she served in the US military.

“It took me getting to this statehouse for my colleagues to call me a murderer. I had to get that kind of abuse in this room, in this chamber. Sir, I am not a murderer, and my sisters are not murderers either,” Pack said on Friday. “We are pro-choice. That is what we are. We believe that we have command over our own bodies.”

During Friday’s debate, lawmakers on both sides of the isolate lamented the time crunch they were under to consider such a difficult topic.

“We are all trying, we are all discerning, none of us are sleeping, none of all are doing well. We’re walking around with … knots in our stomach,” House Rep. Ann Vermilion, a Republican from Marion, said on the floor Friday ahead of the vote, getting emotional.

“Everyone of us, 150, have cried this week and we are all trying to do the will of the people while equally being true to our faith and our core belief,” she said.

Particular attention has been placed on Indiana after a 10-year-old rape victim from Ohio crossed state lines to get an abortion in June, after Roe was overturned.

The Indiana doctor who provided abortion services for the 10-year-old girl said the Indiana abortion bill “is going to hurt Hoosier women.”

“Medicine is not about exceptions,” Dr. Caitlin Bernard told CNN’s Brianna Keilar on “New Day” earlier Friday. “I can’t even begin to tell you how many patients I see in very unique situations that can’t fit in to those exceptions, that can’t have a list of what I can and can’t do. They can’t wait to check with their lawyer, I can’t wait to check with my lawyer. I need to be able to take care of patients when and where they need that care.”

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Sinema made Schumer cut carried interest piece of reconciliation bill

US Senate Majority Leader Chuck Schumer (D-NY) holds his weekly news conference after the Democratic caucus party luncheon at the US Capitol in Washington, August 2, 2022.

Jonathan Ernst | Reuters

Senate Majority Leader Chuck Schumer said Friday that Democrats had “no choice” but to drop a key tax provision from their major spending bill in order to gain Sen. Kyrsten Sinema’s support.

Sinema, a centrist Democrat from Arizona, had held her support of the Inflation Reduction Act, the sweeping bill that includes much of the Biden administration’s tax, climate and health care agenda. Senate Democrats need her support from her to pass the bill through the Senate on a party-line vote using the budget reconciliation process, which requires a simple majority vote. The chamber is split 50-50 between Democrats and Republicans.

Sinema announced Thursday night that she would indeed back the legislation, following an agreement “to remove the carried interest tax provision.”

She was referring to the bill’s inclusion of language that would narrow the so-called carried interest loophole, a feature of the tax code that both Democrats and Republicans — including former President Donald Trump — have tried to close.

Carried interest refers to compensation that hedge fund managers and private equity executives receive from their firms’ investment gains. After three years, that money is taxed at a long-term capital gains rate of 20%, instead of a short-term capital gains rate, which tops out at 37%.

The Inflation Reduction Act aimed to narrow that loophole by extending the short-term tax rate to five years. The bill’s provision was projected to raise $14 billion over a 10-year period.

“I pushed for it to be in this bill,” Schumer, DN.Y., said of the proposal to narrow the loophole.

But “Senator Sinema said she would not vote for the bill, not even move to proceed unless we took it out,” he said. “So we had no choice.”

Sinema stressed Thursday night that after the reconciliation bill passes, “I look forward to working with [Sen. Mark Warner, D-Va.] to enact carried interest tax reforms, protecting investments in America’s economy and encouraging continued growth while closing the most egregious loopholes that some abuse to avoid paying taxes.”

A spokeswoman for Sinema defended the senator’s record when asked by CNBC on Friday about Schumer’s remarks and her stance on carried interest.

Sinema “has been clear and consistent for over a year that she will only support tax reforms and revenue options that support Arizona’s economic growth and competitiveness,” the spokeswoman said. “At a time of record inflation, rising interest rates and slowing economic growth, disincentivizing investments in Arizona businesses would hurt Arizona’s economy and ability to create jobs.”

Schumer said that another tax piece from the Inflation Reduction Act was taken out in order to secure the deal with Sinema. This one came from a proposal to impose a 15% corporate alternative minimum tax aimed at rich corporations that are accused of skirting their tax obligations. It was projected to raise $313 billion — more than 40% of the bill’s revenue.

While that part of the bill was altered, “$258 billion of that remains, so the vast majority remains,” Schumer said.

And while the carried interest provision was nixed, Schumer said Democrats added in an excise tax on stock buybacks that will bring in $74 billion. He said that multiple legislators are “excited” about that update.

“I hate stock buybacks. I think they’re one of the most self-serving things corporate America does,” Schumer said. “I’d like to abolish them.”

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Sinema made Schumer cut carried interest loophole from reconciliation bill

US Senate Majority Leader Chuck Schumer (D-NY) holds his weekly news conference after the Democratic caucus party luncheon at the US Capitol in Washington, August 2, 2022.

Jonathan Ernst | Reuters

Senate Majority Leader Chuck Schumer said Friday that Democrats had “no choice” but to drop a key tax provision from their major spending bill in order to gain Sen. Kyrsten Sinema’s support.

Sinema, a centrist Democrat from Arizona, had held her support of the Inflation Reduction Act, the sweeping bill that includes much of the Biden administration’s tax, climate and health care agenda. Senate Democrats need her support from her to pass the bill through the Senate on a party-line vote using the budget reconciliation process — which requires a simple majority vote in the Senate split 50-50 by party.

Sinema announced Thursday night that she would indeed back the legislation, following an agreement “to remove the carried interest tax provision.”

She was referring to the bill’s inclusion of language that would narrow the so-called carried interest loophole, a feature of the tax code that both Republicans and Democrats — including former President Donald Trump — have tried to close.

Carried interest refers to compensation that hedge fund managers and private equity executives receive from their firms’ investment gains. After three years, that money is taxed at a long-term capital gains rate of 20%, instead of a short-term capital gains rate, which tops out at 37%.

The Inflation Reduction Act aimed to narrow that loophole by extending the short-term tax rate to five years. The bill’s provision was projected to raise $14 billion over a 10-year period.

“I pushed for it to be in this bill,” Schumer, DN.Y., said of the proposal to narrow the loophole.

But “Senator Sinema said she would not vote for the bill, not even move to proceed unless we took it out,” he said. “So we had no choice.”

Sinema stressed Thursday night that after the reconciliation bill passes, “I look forward to working with [Sen. Mark Warner, D-Va.] to enact carried interest tax reforms, protecting investments in America’s economy and encouraging continued growth while closing the most egregious loopholes that some abuse to avoid paying taxes.”

A spokeswoman for Sinema defended the senator’s record when asked by CNBC on Friday about Schumer’s remarks and her stance on carried interest.

Sinema “has been clear and consistent for over a year that she will only support tax reforms and revenue options that support Arizona’s economic growth and competitiveness,” the spokeswoman said. “At a time of record inflation, rising interest rates, and slowing economic growth, disincentivizing investments in Arizona businesses would hurt Arizona’s economy and ability to create jobs.”

Schumer said that another tax piece from the Inflation Reduction Act was taken out in order to secure the deal with Sinema. This one came from a proposal to impose a 15% corporate alternative minimum tax aimed at rich corporations that are accused of skirting their tax obligations. It was projected to raise $313 billion — more than 40% of the bill’s revenue.

While that part of the bill was altered, “$258 billion of that remains, so the vast majority remains,” Schumer said.

And while the carried interest provision was nixed, Schumer said Democrats added in an excise tax on stock buybacks that will bring in $74 billion. He said that multiple legislators he spoke with are “excited” about that update.

“I hate stock buybacks. I think they’re one of the most self serving things corporate America does,” Schumer said. “I’d like to abolish them.”

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RNC announces it will hold 2024 convention in Milwaukee

The convention site was unanimously approved by RNC members during a closed-door vote Friday morning at the party’s annual summer meeting here. McDaniel was joined by former White House chief of staff and onetime RNC chairman Reince Priebus, along with members of the party’s Wisconsin delegation for the announcement.

“In the next two years, we look forward to working with the mayor and everyone in the community to make this an event that highlights not just our nominee … but the great city that Milwaukee is,” McDaniel said.

Milwaukee Mayor Cavalier Johnson, a Democrat, defended the decision to host the convention in his city, telling CNN the move “does not mean” Milwaukee is “signing up for the platform of the Republican Party.”

GOP committee recommends Milwaukee hosts 2024 Republican National Convention

“My stance, and I think that most Democrats understand this, is that this is not a political decision, it is a business decision,” Johnson said. “It will present an opportunity for us to have millions of dollars of economic impact… for us to fill our restaurants, our bars, our hotels, and to support our hospitality industry that’s been battered by Covid, of course, over the last couple of years.”

Johnson joined McDaniel Friday to officially unveil Milwaukee as the convention site choice, just days after Nashville fell out of contention as a potential alternative. Milwaukee began its bid to be a convention host nearly a year ago, and city representatives met with RNC officials in February as they toured finalist cities, which included Salt Lake City and Pittsburgh at the time. Both cities were later removed from the running.

Later Friday, former President Donald Trump is scheduled to host a rally in the Milwaukee suburb of Waukesha to campaign for Tim Michels, the GOP candidate for governor, ahead of the state’s primary next week. Trump’s sustained popularity with the GOP base would likely position him as a front-runner in a crowded 2024 GOP primary should he launch another presidential campaign, as is widely expected.
Johnson, who said he will actively campaign for President Joe Biden’s reelection in 2024, dismissed security concerns about protests around the convention in Milwaukee, including if Trump — one of the most polarizing figures in American politics — is the Republican nominee.

“I think that any time you host a large-scale event, there is potential for that sort of activity. Our police department is well-versed, and I think they are prepared for the convention,” Johnson said, noting that Milwaukee was originally supposed to host the 2020 Democratic National Convention before it switched to a virtual format amid the coronavirus pandemic.

“The police in Milwaukee are already well prepared for this and will really be in a prime position to execute what we were about to execute the last go-round,” Johnson said.

This story has been updated with additional reporting on the selection.

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Pentagon denies DC request for National Guard migrant help

WASHINGTON (AP) — The Pentagon rejected a request from the District of Columbia seeking National Guard assistance in what the largest has called a “growing humanitarian crisis” prompted by thousands of migrants being bused to the city from two southern states.

Defense Secretary Lloyd Austin declined to provide Guard personnel and the use of the DC Armory to assist with the reception of migrants into the city, according to US defense officials. Mayor Muriel Bowser said Friday that the district may send an amended, “more specific” request, adding that she believes this is the first time a DC request for the National Guard has been denied.

One official, who spoke on condition of anonymity to discuss a decision not yet made public, said that the Federal Emergency Management Agency’s food and shelter program has provided funding for the problem, and has indicated those funds are sufficient at this point.

Bowser, the largest Democratic district’s, formally asked the White House last month for an open-ended deployment of 150 National Guard members per day as well as a “suitable federal location” for a mass housing and processing center, mentioning the DC Armory as a logical candidate.

During the spring, Texas Gov. Greg Abbott and Arizona Gov. Doug Ducey, both Republicans, announced plans to send busloads of migrants to Washington, DC, in response to President Joe Biden’s decision to lift a pandemic-era emergency health order that restricted migrant entry numbers. On Friday, Abbott said the first group of migrants from his state had now been bused to New York as well.

As of mid-July, about 5,200 migrants had been bused from Texas to DC since April. As of Aug. 3, more than 1,300 had been sent from Arizona since May. The governors call the practice a voluntary free ride – paid for by state taxpayers — that gets migrants closer to family or support networks.

But Bowser last month dismissed that characterization, saying that the asylum-seekers are being “tricked,” as many don’t get close enough to their final destinations and some are ditched at Union Station near the US Capitol and the White House. Often they arrive with no resources and no clue what to do next.

On Friday, Bowser told reporters that the Pentagon appears to be concerned “about the open-ended nature of our request.” and that a more specific one would help.

“We want to continue to work with the Department of Defense so that they understand our operational needs and to assure that political considerations are not a part of their decision,” Bowser said, adding that she believes the “crisis” will only worsen. “We need the National Guard. If we were a state, I would have already done it.”

A coalition of local charitable groups has been working to feed and shelter the migrants, aided by a $1 million grant from FEMA. But organizers have been warned that both their resources and personnel were nearing exhaustion.

“This reliance on NGOs is not working and is unsustainable — they are overwhelmed and underfunded,” Bowser said in her letter. She has repeatedly stated that the influence is stressing her government’s ability to care for its own homeless residents and now requires a federal response.

Bowser sharply criticized Abbott and Ducey, accusing them of “cruel political gamesmanship” and saying the pair had “decided to use desperate people to score political points.”

Explaining his decision to add New York City as a destination, Abbott said that Biden’s “refusal to acknowledge the crisis caused by his open border policies” forced Texas to “take unprecedented action to keep our communities safe.”

He said the migrants are being dropped off at the Port Authority Bus Terminal.

“In addition to Washington, DC, New York City is the ideal destination for these migrants, who can receive the abundance of city services and housing that Mayor Eric Adams has boasted about within the sanctuary city,” Abbott said.

In response, Fabien Levy, spokesman for Adams, tweeted that Abbott’s “continued use of human beings as political pawns is disgusting. NYC will continue to welcome asylum seekers w/ open arms, as we have always done, but we still need support from DC.”

As mayor of DC, Bowsesr does not have the authority to personally order a National Guard deployment, an issue that has become emotionally charged in recent years as a symbol of the district’s entrenched status as less than a state.

Her limited authority played a role in the Jan. 6, 2021, insurrection at the US Capitol by supporters of former President Donald Trump. When it became clear that Capitol Police were overmatched by the crowds, Bowser couldn’t immediately deploy the district guard. Instead, crucial time was lost while the request was considered inside the Pentagon, and protesters rampaged through the building.

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Associated Press writer Ashraf Khalil in Washington, DC, Karen Matthews in New York City and Bob Christie in Phoenix contributed to this report.

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Man who threatened Anthony Fauci sentenced to over three years in federal prison

Thomas Patrick Connally Jr., 56, was sentenced in US District Court in Maryland to 37 months in federal prison, followed by three years of supervised release. He had been arrested by authorities in West Virginia and charged last year with threats against a federal official and interstate communication containing a threat to harm.

In his plea agreement, Connally admitted to sending a series of emails threatening to harm and/or kill Fauci and his family through an encrypted email service based in Switzerland. The investigation revealed that the encrypted email account was associated with Connally, the Justice Department said.

Fauci started receiving the threatening messages to his work email at the National Institute of Allergy and Infectious Diseases in Maryland in December 2020, the first of which came with the subject line: “Hope you get a bullet in your compromised satanic skull today,” according to the complaint.

One of seven emails that Connally sent to Fauci in a day read: “You and your entire family will be dragged into the street, beaten to death, and set on fire,” according to the complaint.

Connally also sent threatening emails to Dr. Francis Collins, the former director of the National Institutes of Health, and Dr. Rachel Levine, the assistant secretary for health at the US Department of Health and Human Services.

He admitted he felt the threats to Fauci and Collins with the “intent to intimidate or interfere with the performance of their official duties and with the attempt to retaliate against Dr. Fauci and Dr. Collins for performing their official duties, including discussing COVID-19 and its testing and prevention,” the Justice Department said.

“Everyone has the right to disagree, but you do not have the right to threaten a federal official’s life,” US Attorney for the District of Maryland Erek L. Barron said in a statement. “Threats like these will be prosecuted to the fullest extent of the law.”

Fauci, who is also chief medical adviser to President Joe Biden, was forced to beef up security in 2020 as death threats increased amid the Covid-19 pandemic.

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Does the Inflation Reduction Act violate Biden’s $400,000 tax pledge?

JimWatson | Afp | Getty Images

Senate Democrats’ package of climate change, health-care, drug pricing and tax measures unveiled last week has proponents and opponents debating whether the legislation violates a pledge President Joe Biden has made since his presidential campaign, to do not raise taxes on households with incomes below $400,000 a year.

The answer isn’t quite as simple as it seems.

“The fun part about this is, you can get a different answer depending on who you ask,” said John Buhl, an analyst at the Tax Policy Center.

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The White House has used $400,000 as a rough dividing line for the wealthy relative to middle and lower earners. That income threshold equates to about the top 1% to 2% of American taxpayers.

The new bill, the Inflation Reduction Act, doesn’t directly raise taxes on households below that line, according to tax experts. In other words, the legislation wouldn’t trigger an increase on taxpayers’ annual tax returns if their income is below $400,000, experts said.

But some aspects of the legislation may have adverse downstream effects — a sort of indirect taxation, experts said. This “indirect” element is where opponents seem to have directed their ire.

What’s in the Inflation Reduction Act

The legislation — brokered by Senate Majority Leader Chuck Schumer, DN.Y., and Sen. Joe Manchin, DW.Va., who’d been a key centrist holdout — would invest about $485 billion toward climate and health-care measures through 2031, according to a Congressional Budget Office analysis issued Wednesday.

Broadly, that spending would be in the form of tax breaks and rebates for households that buy electric vehicles and make their homes more energy-efficient, and a three-year extension of the current Affordable Care Act subsidies for health insurance.

The bill would also raise an estimated $790 billion via tax measures, reforms for prescription drug prices and a fee on methane emissions, according to the Congressional Budget Office. Taxes account for the bulk — $450 billion — of the revenue.

Critics say corporate changes could affect workers

Specifically, the legislation would provide more resources for IRS enforcement of tax cheats and would tweak the “carried interest” rules for taxpayers who earn more than $400,000. The change to carried-interest rules — which allow certain private equity and other investors to pay a preferential tax rate on profits — is likely dead, though, after Democratic leaders agreed to scrap it to win support from Sen. Kyrsten Sinema, D-AZ.

Those elements aren’t controversial relative to the tax pledge — they don’t raise the annual tax bills middle and low earners owe, experts said.

The Inflation Reduction Act would also implement a 15% corporate minimum tax, paid on the income large companies report to shareholders. This is where “indirect” taxes might come into play, experts said. For example, a corporation with a higher tax bill might pass on those additional costs to employees, perhaps in the form of a lower raise, or reduced corporate profits may hurt 401(k) and other investors who own a piece of the company in a mutual fund.

The Democrats’ approach to tax reform means increasing taxes on low- and middle-income Americans.

Sen. mike krapo

Republican of Idaho

The current corporate tax rate is 21% but some companies are able to reduce their effective tax rate and therefore pay back their bill.

As a result of the policy, those with incomes below $200,000 would pay almost $17 billion in combined additional tax in 2023, according to a Joint Committee on Taxation analysis published July 29. That combined tax burden falls to about $2 billion by 2031, according to the JCT, an independent scorekeeper for Congress.

“The Democrats’ approach to tax reform means increasing taxes on low- and middle-income Americans,” Sen. Mike Crapo, R-Idaho, ranking member of the Finance Committee, said of the analysis.

Others say financial benefits outweigh indirect costs

However, the JCT analysis does not provide a complete picture, according to experts. That’s because it doesn’t account for the benefits of consumer tax rebates, health premium subsidies and lower prescription drug costs, according to the Committee for a Responsible Federal Budget.

Observers who consider indirect costs should weigh these financial benefits, too, experts argue.

“The selective presentation by some of the distributional effects of this bill neglects benefits to middle-class families from reducing deficits, from bringing down prescription drug prices and from more affordable energy,” a group of five former Treasury secretaries from both Democratic and Republican administrations wrote Wednesday.

The $64 billion of total Affordable Care Act subsidies alone would “be more than enough to counter net tax increases below $400,000 in the JCT study,” according to the Committee for a Responsible Federal Budget, which also estimates Americans would save $300 billion on costs and premiums for prescription drugs.

The combined policies would offer a net tax cut for Americans by 2027, the group said.

Further, setting a minimum corporate tax rate shouldn’t be viewed as an “extra” tax, but a “reclaiming of revenue lost to tax avoidance and provisions benefitting the most affluent,” argued the former Treasury secretaries. They are Timothy Geithner, Jacob Lew, Henry Paulson Jr., Robert Rubin and Lawrence Summers.

There are additional wrinkles to consider, though, according to Buhl of the Tax Policy Center.

For example, to what extent do companies pass on their tax bills to workers versus shareholders? Economists differ on this point, Buhl said. And what about companies with a lot of excess cash on hand? Might that cash buffer lead a company not to levy an indirect tax on its workers?

“You could end up going down these rabbit holes forever,” Buhl said. “It’s just one of the fun parts of tax pledges,” he added.

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