They are right when they say the Fed is not the appropriate institution to address the inflationary oil and food price situation. This is something that is more appropriately addressed through fiscal policy. Now, if only those deadbeats Joe Manchin and Kristin Sinema would come along and agree with Joe Biden on some sort of inflation reduction act.
Oh wait, there is news that they have come around (see below). My apologies for the insults. Of course, I will believe it when I see it.
Kyrsten Sinema Is on Board with Democrats’ Climate, Tax, and Inflation Reduction Bill
by Abigail Weinberg
August 5, 2022
Introduction:
(Mother Jones) Sen. Kyrsten Sinema (D-Ariz.), a crucial vote in an evenly divided Senate, announced last night that she would support a key piece of Biden’s legislative agenda—with some caveats.
Last week, Sen. Joe Manchin (D-W.Va.), a longtime holdout, stunned his colleagues when he announced that he had struck a deal with Senate Majority Leader Chuck Schumer (D-N.Y.) on the “Inflation Reduction Act of 2022,” which “includes roughly $370 billion in energy and climate spending, $300 billion in deficit reduction, three years of subsidies for Affordable Care Act premiums, prescription drug reform and significant tax changes,” per Politico.
But the bill was not going to move forward without the support of Sinema, who demanded that Democrats drop a provision that would place new limitations on the carried interest loophole—which many of her donors happen to benefit from—and garner roughly $14 billion in funding. Instead, the bill will reportedly include a 1 percent excise tax on stock buybacks—the practice of corporations repurchasing their own stock to drive up share prices—that’s set to garner $73 billion in federal revenue. Sinema also reportedly managed to win $5 billion in drought resiliency funding, a boon to Arizona.
Even in its altered form, the bill is a huge deal, promising to direct billions toward combating climate change, extend Obamacare subsidies through Biden’s term, and reduce prescription drug costs. The Senate parliamentarian still has to ensure that all the bill’s provisions all qualify for the reconciliation process that would allow the legislation to evade a GOP filibuster. But for now, things are moving. Schumer plans to introduce the final bill tomorrow.
Read more here:
https://www.motherjones.com/politics/2 ... ion-deal/
caltrek's comment: Keeping carried interest loophole is not a good thing, so there is still some reason for shame there. A drought resiliency fund is probably a good idea, so Sinema has most likely earned some bragging rights there.
Don't mourn, organize.
-Joe Hill