Democrats' Climate and Tax BillSenate Passes Climate and Tax Bill After Marathon Debate

Despite all Republicans being opposed, the vote was a major victory for President Biden and Democrats. The bill now goes to the House, where it is expected to pass by the end of the week.

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The Senate passed the Inflation Reduction Act with a 51 to 50 tally, with Vice President Kamala Harris casting the tiebreaking vote. The bill is expected to pass the House in the coming days.CreditCredit...Kenny Holston for The New York Times
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Senate passes the climate, health and tax bill, with all Republicans opposed.

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Democrats scaled back the legislation, which appeared dead just weeks ago, and rebranded it as the Inflation Reduction Act.Credit...Tom Brenner for The New York Times

WASHINGTON — The Senate passed legislation on Sunday that would make the most significant federal investment in history to counter climate change and lower the cost of prescription drugs, as Democrats banded together to push through major pieces of President Biden’s domestic agenda over unified Republican opposition.

The measure, large elements of which appeared dead just weeks ago amid Democratic divisions, would inject more than $370 billion into climate and energy programs. Altogether, the bill could allow the United States to cut greenhouse gas emissions about 40 percent below 2005 levels by the end of the decade.

It would achieve Democrats’ longstanding goal of slashing prescription drug costs by allowing Medicare for the first time to negotiate the prices of medicines directly and capping the amount that recipients pay out of pocket for drugs each year at $2,000. The measure also would extend larger premium subsidies for health coverage for low- and middle-income people under the Affordable Care Act for three years.

And it would be paid for by substantial tax increases, mostly on large corporations, including establishing a 15 percent corporate minimum tax and imposing a new tax on company stock buybacks.

Initially pitched as “Build Back Better,” a multi-trillion-dollar, cradle-to-grave social safety net plan on the order of the Great Society, Democrats scaled back the legislation in recent months and rebranded it as the Inflation Reduction Act. It was projected to lower the federal deficit by as much as $300 billion over a decade, though it remained to be seen whether it would counter inflation or lower costs for Americans in the long term.

Passage of the measure was a major victory for Mr. Biden and Democrats, who are battling to maintain their slim House and Senate majorities in November’s midterm congressional elections. Facing unanimous opposition by Republicans, who have used filibusters to block many elements of their domestic agenda, Democrats took full advantage of the Senate’s special budget rules to force through as much of it as they could with the support of all 50 members of their caucus.

The final tally was 51 to 50, with Vice President Kamala Harris casting the tiebreaking vote. The House planned to interrupt its summer break to reconvene briefly on Friday to clear the measure, sending it to Mr. Biden for his signature.

“Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit, while making the wealthiest corporations finally pay their fair share,” Mr. Biden said in a statement.

The Senate vote was the culmination of more than a year of hard-fought negotiations between the party’s progressive core, which demanded a transformational plan that would touch every aspect of American life, and a conservative-leaning flank that sought a much narrower package. Those talks played out against the backdrop of a 50-50 Senate in which any single defection could have killed the effort — and nearly did, several times.

“The caucus overwhelmingly is focused on what’s in this bill — not what’s not in the bill, even though every one of us would want more — because what’s in the bill is so incredible,” Senator Chuck Schumer of New York, the majority leader, said in an interview. “You had to thread the needle.”

Approval came after a weekend session featuring an all-night voting marathon that stretched for 16 hours, in which Republicans tried and failed repeatedly to derail the legislation, and Democrats united to beat back nearly all of their efforts.

Republicans did succeed in forcing the removal of a $35 cap on insulin prices for patients on private insurance, challenging it as a violation of Senate rules in a vote that Democrats were all but certain to use as a political weapon against them ahead of the midterms. The insulin price cap for Medicare patients remained untouched in the bill, with the potential to help millions of seniors.

As part of its landmark climate and energy initiative, which would put the Biden administration within reach of its aim to cut emissions roughly in half by 2030, the bill would offer tax incentives to steer consumers to electric vehicles and lure electric utilities toward renewable energy sources like wind or solar power. It also includes millions of dollars in climate resiliency funding for tribal governments and Native Hawaiians, as well as $60 billion to help disadvantaged areas that are disproportionately affected by climate change.

For Democrats, passage of the measure capped a remarkably successful six-week stretch that included final approval of a $280 billion industrial policy bill to bolster American competitiveness with China and the largest expansion of veterans’ benefits in more than two decades. But unlike those bills, the tax and climate legislation passed the evenly divided Senate along party lines, condemned by Republicans as federal overreach and reckless spending at a time when prices remain high across the country.

The measure fell far short of Mr. Biden’s original vision for the plan and the $2.2 trillion measure that the House passed in November. To accommodate the demands and concerns of two holdouts, Senators Joe Manchin III of West Virginia and Kyrsten Sinema of Arizona, Democrats jettisoned billions of dollars for child care, paid leave and public education and set aside plans to roll back key elements of the 2017 Republican tax overhaul.

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There was little Republicans could do to stop passage once Senators Kyrsten Sinema and Joe Manchin III said they would support the bill.Credit...T.J. Kirkpatrick for The New York Times

But the final package contained a series of proposals that Democrats have labored for decades to push through. If enacted, it would be the most significant climate law ever put in place in the United States, investing hundreds of billions of dollars over 10 years in tax credits for manufacturing facilities for things like electric vehicles, wind turbines and solar panels, and $30 billion for additional production tax credits to accelerate domestic manufacturing of solar panels, wind turbines, batteries and critical minerals processing. It would also impose a fee to penalize excessive emissions of methane, a greenhouse gas.

The legislation would allow Medicare to negotiate the cost of up to 10 prescription drugs initially, beginning in 2026, and give seniors access to free vaccines. Coupled with a three-year extension of expanded health care subsidies first approved last year as part of the $1.9 trillion pandemic aid law, the package amounts to the largest change to national health policy since the passage of the Affordable Care Act.

To finance much of the plan, the measure would institute a new 15 percent corporate minimum tax that would apply to the profits that companies report on their financial statements to shareholders, known as book income. It would impose a new 1 percent tax on corporate stock buybacks beginning in 2023. The measure also would pour $80 billion into the I.R.S. to bulk up the agency’s enforcement arm and crack down on wealthy corporations and tax evaders. That provision is estimated to raise $124 billion over a decade.

“When I come to the end of my service in the Senate, I’ll look back on the passage of this bill as one of the most significant things that I’ve had an opportunity to work on,” said Senator Tina Smith, Democrat of Minnesota and one of the many climate hawks who pushed for the legislation.

Congressional Republicans hammered the bill as an exorbitant spending package with damaging tax hikes that would inflict more pain on the nation’s economy at a perilous moment. While outside analysis suggested the legislation would reduce the federal budget deficit by the end of the decade and have a limited impact on federal spending, Republicans continued to brand it a “reckless tax and spending spree.”

“Democrats’ policies have torn down the savings, the stability and the lifestyles that families worked and sacrificed for years to build up,” Senator Mitch McConnell of Kentucky, the minority leader, said on Sunday. “The effect of this one-party government has been an economic assault on the American middle class.”

It was the second time in less than two years that Democrats muscled through a sprawling spending package without any Republican support, following passage of the $1.9 trillion pandemic aid package last year. Since inflation skyrocketed in the months after that measure became law, Republicans warned that Democrats were exacerbating the economic stress facing American families by passing the legislation.

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Passage of the legislation was a triumph for Senator Chuck Schumer, the majority leader, ahead of the midterm elections in November.Credit...Haiyun Jiang/The New York Times

Senator Lindsey Graham of South Carolina, the top Republican on the Budget Committee, announced Saturday evening that he had “thought long and hard about how to explain this to the American people, and the only thing I can tell you is insanity is defined as doing the same thing and expecting a different outcome.”

But there was little Republicans could do to stop passage once Mr. Manchin and Ms. Sinema said they would support it. Democrats moved the bill under the special process known as reconciliation, which shields budget measures from filibusters.

There was a price for Mr. Manchin’s and Ms. Sinema’s support, however.

Mr. Manchin ensured that the interests of his coal-producing state were reflected in the final bill. In addition to securing separate commitments to complete construction of a natural gas pipeline in West Virginia and votes on a measure to help fast-track permits for energy infrastructure, he fought to include tax credits for carbon capture technology and requirements for new oil drilling leases in Alaska’s Cook Inlet and the Gulf of Mexico.

Ms. Sinema extracted her own concessions, including $4 billion to help Western states combat historic drought levels and the preservation of a tax break that allows venture capitalists and hedge fund managers to pay substantially lower taxes on some of their income than other taxpayers.

She also preserved a valuable deduction known as bonus depreciation, used by manufacturers when they purchase equipment, that they could have lost or seen diluted under the new corporate minimum tax rules. And on Sunday afternoon, just as the measure appeared on a glide path to approval, she insisted on yet another change, backing a Republican proposal to shield hedge fund and portfolio companies from being hit by the minimum tax.

The concessions frustrated liberals, particularly Senator Bernie Sanders, the Vermont independent and Budget Committee chairman who had pushed for spending as much as $6 trillion on the domestic policy package. He proposed changes to the measure during the all-night voting session, though most Democratic senators opposed them in order to protect the final product.

By Sunday afternoon around 3:30, staff aides wiped away tears as they watched the final vote on the floor. Democratic senators whooped with joy and hugged one another after the gavel fell, making a point of thanking and acknowledging Mr. Manchin and Ms. Sinema.

“This is pretty nearly a political miracle to negotiate with a caucus that is as diverse as we have, from Bernie to Manchin,” said Senator Brian Schatz, Democrat of Hawaii, who openly wept on the Senate floor during the final vote. “This thing got killed and got revived and got killed and got revived — all the way to the end.”

Reporting was contributed by Luke Broadwater, Lisa Friedman, Stephanie Lai, Alan Rappeport Sheryl Gay Stolberg and Jim Tankersley.

Emily Cochrane
Aug. 7, 2022, 6:26 p.m. ET

Sinema’s support for the bill hinged in part on a single tax proposal.

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In an evenly divided Senate, Democrats needed to secure the vote of Kyrsten Sinema of Arizona. Credit...Tom Brenner for The New York Times

Democrats were barreling toward final passage of their climate, health care and tax bill when it became clear there was an issue: Senator Kyrsten Sinema of Arizona, an enigmatic centrist, was prepared to back a Republican change to a key tax proposal.

That amendment, proposed by Senator John Thune of South Dakota, the No. 2 Republican, narrowed the scope of a 15 percent corporate minimum tax. Republicans and lobbyists had raised concerns that the tax would negatively affect smaller businesses and accused Democrats of sneaking in a last-minute change. Democrats denied it, but in an evenly divided Senate, they had to change the measure to secure Ms. Sinema’s vote.

Senator Chuck Schumer of New York, the majority leader, acknowledged at a news conference Sunday afternoon that it had been “a real bump in the road because Senator Sinema had promised Senator Thune that she would vote for his amendment.”

The removal of what Republicans estimated would be as much as $35 billion in revenue was replaced with an extension of a cap on how much families in high income, largely blue states, could deduct from their state and local taxes. Lawmakers from those states, who had fought for months to lift that limit, appeared likely to block final package of the overall package if the cap were extended.

Instead Senator Mark Warner, Democrat of Virginia and one of the senators who spent months working closely with Ms. Sinema to reach a compromise, proposed a separate amendment that maintained the change to corporate minimum tax, but undid the extension of the so-called SALT cap. Instead, he proposed a two-year extension of an existing tax limit on deductions for business losses that was first enacted in 2017.

“We spent several hours trying to figure out a way to keep Senator Sinema true to her word to Senator Thune, but get it done,” Mr. Schumer said. “And we did.”

Ultimately six Democrats — Senators Catherine Cortez Masto and Jacky Rosen of Nevada, Raphael Warnock and Jon Ossoff of Georgia, Mark Kelly of Arizona, and Maggie Hassan of New Hampshire — joined Ms. Sinema and every Republican in supporting Mr. Thune’s amendment. All Democrats backed Mr. Warner’s change, preserving Democratic support for the final bill.

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Lisa Friedman
Aug. 7, 2022, 4:56 p.m. ET

Consumers will benefit from lower utility bills and cheaper home upgrades, energy experts say.

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A neighborhood in Austin, Tex., where many homes are equipped with rooftop solar panels. The bill passed by the Senate on Sunday would allow households that are installing solar to deduct 30 percent of the cost from their taxes.Credit...Tamir Kalifa for The New York Times

The Inflation Reduction Act that was passed by the Senate on Sunday could lower electricity bills for consumers and the prices of things like rooftop solar panels, energy-efficient appliances and electric vehicles, Democrats and some energy experts said.

Under the legislation, a home improvement credit for energy efficiency would allow households to deduct from their taxes up to 30 percent of the cost of upgrades like heat pumps and insulation. Another provision extends a program that allows households that are installing solar or battery storage systems to deduct 30 percent of the cost of those projects from their taxes.

Rewiring America, a nonprofit group that promotes energy efficiency, said it estimated that those and other measures in the legislation could save households $1,800 a year.

The package also continues an incentive for families to replace their gas-powered vehicles with electric. It extends a current $7,500 tax credit for new electric vehicles and $4,000 for a used one. Couples who earn less than $300,000 a year or individuals who earn less than $150,000 a year would be eligible for the credits, and consumers would get the discount at the dealership.

“This bill will help create jobs and lower costs for many American families,” in addition to slowing climate change, said Senator Thomas R. Carper, Democrat of Delaware.

Republicans said they expected the measure to drive up inflation and said the credits would not help Americans.

“They’re not into buying an electric car any time in the near future,” Senator Marco Rubio, Republican of Florida, said of his constituents. “They’d like gas prices to come down because we’re producing more oil.”

Emily Cochrane
Aug. 7, 2022, 4:40 p.m. ET

Speaker Nancy Pelosi of California vowed that “the House will return and move swiftly to send this bill to the president’s desk — proudly building a healthier, cleaner, fairer future for all Americans.” Both progressive and moderate lawmakers from her caucus on Sunday were signaling there would be little issue rallying votes.

Carl Hulse
Aug. 7, 2022, 4:18 p.m. ET

News Analysis

Chuck Schumer, the ‘Happy Worrier,’ delivers.

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“We’ve had an extraordinary six weeks,” Senator Chuck Schumer said, calling the climate, health and tax measure “the most comprehensive piece of legislation affecting the American people in decades.”Credit...Haiyun Jiang/The New York Times

WASHINGTON — Senator Chuck Schumer was huddled in his Capitol office on Thursday evening awaiting a climactic meeting with Kyrsten Sinema, a critical holdout on his painstakingly negotiated climate change, tax and health care deal, when the loud booms and flashes of a powerful thunderstorm shook Washington, setting the lights flickering.

Mr. Schumer and his aides, so close to a signature legislative achievement to top off a surprise string of victories, glanced anxiously at one another and wondered if it was a bad omen. A 50-50 Senate, a pandemic that kept Democrats constantly guessing about who would be available to vote and the sheer difficulty of managing the nearly unmanageable chamber had left them superstitious.

“I’ve been a worrier all my life, but a happy worrier,” said Mr. Schumer, Democrat of New York and the majority leader.

He needn’t have fretted. After a half-hour meeting, Mr. Schumer shook hands with Ms. Sinema, Democrat of Arizona, who agreed to lend her support to the legislation in exchange for a few revisions and some home-state drought relief. After a grueling overnight session, the Senate approved the sweeping measure on Sunday, with Vice President Kamala Harris casting the tiebreaking vote. The House was expected to follow suit later this week.

It was a head-snapping change in fortune. Just a few weeks earlier, Mr. Schumer, the Democratic agenda and the party’s chances of retaining its bare Senate majority all seemed in sorry shape as last-gasp negotiations over the broad legislation appeared to collapse for good under the weight of resistance from Senator Joe Manchin III, Democrat of West Virginia.

Instead, Democrats not only landed their biggest prize — the party-line climate and tax legislation — but also capped off an extraordinarily productive run for a Congress better known for its paralysis. It included passage of the first bipartisan gun safety legislation in a generation, a huge microchip production and scientific research bill to bolster American competitiveness with China, and a major veterans health care measure.

The series of successes was all the more sweet for Democrats because it came with the political benefit of Republicans making themselves look bad by switching their position and temporarily blocking the bill to help sick veterans, in what appeared to be a temper tantrum over the abrupt resurrection of the climate deal.

“We’ve had an extraordinary six weeks,” Mr. Schumer said in an interview, calling the climate, health and tax measure “the most comprehensive piece of legislation affecting the American people in decades.”

It was far from certain he could attain this result. Mr. Schumer, who unlike his predecessors is not known as a master tactician or gifted legislator, has struggled to produce for long stretches, needing every single vote from an ideologically mixed Democratic membership. Even his allies wondered whether he was too driven by a need to be liked or his own personal political considerations in warding off a potential primary challenge from his left to be capable of the kind of ruthlessness that would be needed.

Mr. Schumer said it was stamina, not bare knuckles, that had been the main requirement.

“This is the hardest job I’ve ever had, with a 50-50 Senate, a big agenda and intransigent Republicans,” Mr. Schumer said. He cited a persistence instilled in him by his father, who ran an exterminating company and died last year, as a motivating factor. “Keep at it, keep at it. Look at all the pitfalls we have faced to get this done.”

The swing on Capitol Hill was palpable as Democrats allowed themselves to hope that their legislative victories, coupled with a national abortion fight they felt was jolting the political landscape in their favor, might keep them in control of the Senate. And for once, they thought they had outfoxed Senator Mitch McConnell, Republican of Kentucky and the minority leader, who has a history of successfully confounding the Democrats.

“The mood is exuberant, expectant and really ecstatic with the progress we’ve made over the past weeks,” said Senator Richard Blumenthal, Democrat of Connecticut.

Mr. Schumer notched the wins without deep involvement from the White House. President Biden, who had campaigned for the presidency citing his deep experience cutting bipartisan deals in the Senate, ceded to him much of the responsibility for nailing down the details. The final negotiations with Mr. Manchin proceeded one on one in near-total secrecy.

Republicans licked their wounds as they watched the Schumer-led Democrats push through legislation the G.O.P. was powerless to stop under special budgetary rules. They weren’t sold on the notion that Democrats had dug themselves out of a political hole with a bill they named the Inflation Reduction Act, given that Mr. Biden’s popularity is still sagging and the cost of consumer goods is up.

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Democrats say that a threat by Senator Mitch McConnell to block the microchip bill he supported should Democrats proceed with the climate and tax legislation backfired.Credit...Haiyun Jiang/The New York Times

“The highest inflation in 40 years, 9.1 percent, families are hurting, they can’t afford a full tank of gas,” said Senator John Barrasso of Wyoming, the No. 3 Senate Republican. “The end of the month just came, and they ran out of money before they ran out of month.”

But Democrats pointed to approval of long-sought authority for Medicare to negotiate lower drug prices as something that would appeal to voters, along with the general sense that Democrats were finally getting things done on Capitol Hill. They relished the prospect of reminding voters that Republicans had voted against the drug-pricing measure, and forced Democrats to drop a proposal that would have capped the monthly cost of insulin at $35 for private insurers.

They also pointed to the climate change provisions as a huge leap forward, though not as extensive as Democrats had initially hoped to achieve before Mr. Manchin forced the party to pare back its goals.

“It’s a historic climate bill, and it wasn’t on the scoreboard one month ago,” said Senator Edward J. Markey, Democrat of Massachusetts and a leader on climate issues. “Senator Schumer, working with Manchin, has been able to pull out the key climate provisions that we need. It is not all that we wanted, but it was what we need to begin this effort to lead the rest of the world.”

Democrats also got some help from Republicans. Not only did the blunder on the veterans bill play into their hands, but Democrats said a threat by Mr. McConnell to block the microchip bill should Democrats proceed with the climate and tax bill backfired by motivating Mr. Manchin to pursue a compromise.

“Any time you threaten a bill you support because you are not getting your way on something else, you are in a bad spot,” said Senator Chris Van Hollen, Democrat of Maryland. “It just looks bad. It was so crassly political.”

While he was getting hammered from the left, Mr. McConnell was also getting pounded from the right for being too accommodating of Democrats on bills such as the microchip measure and the gun measure. But Mr. McConnell has his eye on the midterms as well, and he knows Republicans need suburban voters who might be turned off by knee-jerk obstructionism.

“Just because you have closely divided government doesn’t mean you do nothing,” Mr. McConnell said on Fox News last week. “Just because there is a Democrat in the White House, I don’t think means Republicans should do nothing that is good for the country in the meantime.”

That approach has bolstered Democrats at a crucial moment, entering the heart of the campaign season.

“There is a clear momentum change,” said Senator Gary Peters, Democrat of Michigan and the head of the party’s Senate campaign arm. “I feel like we are in a really good place. Here we are going into August coming into Labor Day, and you look at where the numbers are, and our candidates are all doing really well in a tough environment.”

After the recess, Mr. Schumer and fellow Democrats intend to try to press their success, scheduling politically charged votes on same-sex marriage, oil pricing and other issues they think can showcase their strengths and put Republicans on the spot.

But even as he was about to record a major accomplishment, Mr. Schumer was taking no chances. When the leader of an environmental advocacy group heralded him as a hero after an event outside the Capitol on Thursday, Mr. Schumer cautioned him, “Not yet, not yet.”

Mr. Schumer said the outcome underscored a key difference between him and Mr. McConnell, known more for his blockades and killing legislation than passing bills.

“He brags about the graveyard,” Mr. Schumer said. “I’d like to be proud of the achievements, of getting things done — not not getting things done.”

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Emily CochraneLisa Friedman
Aug. 7, 2022, 3:55 p.m. ET

How Manchin went from a holdout to the deal maker on climate.

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Senator Joe Manchin III of West Virginia at the Capitol on Saturday as the Inflation Reduction Act was going through the voting process.Credit...Tom Brenner for The New York Times

Senator Joe Manchin III of West Virginia, a conservative-leaning Democrat, has been at the heart of the laborious efforts to enact President Biden’s domestic agenda.

While Mr. Manchin helped unlock a $3.5 trillion budget blueprint, he quickly made clear to Democratic leaders that he would be hard-pressed to support more than $1.5 trillion in spending. He rejected the $2.2 trillion bill passed by the House of Representatives as excessive and inflationary, walking away from negotiations in December.

After talks resumed this spring, Mr. Manchin was reviled by environmentalists and some of his own colleagues after he said that he could not support a climate bill this summer because of inflation concerns. He then appeared to abandon hopes of swift passage of any climate and energy policy this year.

But in the end, it was Mr. Manchin who ultimately helped deliver the single largest climate bill in American history — with some key concessions for his state — after striking a surprise deal with Senator Chuck Schumer, Democrat of New York and the majority leader.

“I am proud the Senate passed this bill that will lower the inflation taxes that have been so hurtful for West Virginian and American families,” Mr. Manchin said in a statement. “By investing in American energy production and innovative technologies the U.S. is on a path toward energy security, lower gas and home energy prices and we are leading the fight on global climate.”

The measure requires the federal government to auction off more public lands and waters for oil drilling. It expands tax credits for carbon capture technology that could allow coal- or gas-burning power plants to keep operating with lower emissions.

Mr. Manchin also secured a promise from Democratic leaders to vote on a separate measure to speed up the process of issuing permits for energy infrastructure, as well as a commitment to complete a natural gas pipeline in West Virginia.

“We are moving full steam ahead on comprehensive bipartisan permitting reform so we can efficiently and safely bring more domestic energy projects online,” his statement continued. “Congress will pass that legislation next month.”

Several Republicans and Democrats have marveled at Mr. Manchin’s arc, from refusing to discuss a return to negotiations in early spring to embarking on a blitz of daily television appearances and interviews as the final deal’s most prominent salesman. He refused to support Republican amendments, vowing to “protect the integrity” of the Inflation Reduction Act.

“The Inflation Reduction Act is the product of years of bipartisan conversations about the most impactful ways to produce more energy domestically, bring down energy and health care costs and pay down our debt,” Mr. Manchin said on Twitter on Saturday evening. “Despite this, my R friends have made clear they’re completely unwilling to support this bill under any condition. None of their amendments would change that.”

Emily Cochrane
Aug. 7, 2022, 3:50 p.m. ET

“I want to thank Leader Schumer and every member of the Senate Democratic caucus for supporting this bill,” Biden added. “It required many compromises. Doing important things almost always does.”

Emily Cochrane
Aug. 7, 2022, 3:48 p.m. ET

President Biden issued a statement: “Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit, while making the wealthiest corporations finally pay their fair share.”

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Lisa Friedman
Aug. 7, 2022, 3:48 p.m. ET

Now that the Senate has passed a climate package, Democrats will be expected to fulfill a promise party leaders made to Senator Joe Manchin III of West Virginia to pass separate legislation completing a gas pipeline in his state and expediting permitting for energy infrastructure. Senator Thomas R. Carper, Democrat of Delaware, said he believed that will pass, despite opposition from the environmental community and many in the party. “We’ve come too far,” Carper said.

Stephanie Lai
Aug. 7, 2022, 3:42 p.m. ET

“This really culminates an incredible year of getting real things done for people,” Senator Debbie Stabenow, Democrat of Michigan, said, underscoring the number of bills Senate Democrats have managed to pass as this Congress approaches its conclusion.

Stephanie Lai
Aug. 7, 2022, 3:37 p.m. ET

As she exited the Senate Chambers, Vice President Harris said: “This is a great day and I think there is no question when you think about some of the historic work that has been accomplished.”

Emily Cochrane
Aug. 7, 2022, 3:30 p.m. ET

With most senators heading for planes out of Washington, Schumer has lingered on the Senate floor to offer an emotional tribute to all the staff members in his office and on the floor who helped craft the bill and muscled it through. “This bill is going to change America for decades, and you did it,” he told them.

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Stephanie Lai
Aug. 7, 2022, 3:23 p.m. ET

Senator Brian Schatz, Democrat of Hawaii, left the chambers in tears. “We’ve been fighting for this for decades. Now I can look my kids in the eye and say we’re really doing something about climate,” he said.

Emily Cochrane
Aug. 7, 2022, 3:21 p.m. ET

The climate tax and health care package now heads to the House, which is expected to return Aug. 12 to vote on the measure and send it to President Biden’s desk.

Emily Cochrane
Aug. 7, 2022, 3:19 p.m. ET

Vice President Harris broke the tie, and the bill has cleared the Senate. Democratic staff in the galleries and on the floor joined senators in raucous applause.

Stephanie Lai
Aug. 7, 2022, 3:18 p.m. ET

Senator Ron Wyden, Democrat of Oregon and chair of the finance committee, said the last-minute amendment from Warner would actually help save money.

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Credit...Haiyun Jiang/The New York Times

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Emily Cochrane
Aug. 7, 2022, 3:15 p.m. ET

Senator Chuck Schumer of New York also made a point of thanking the Senate parliamentarian, who labored overnight for days to help scrub the final bill.

Emily Cochrane
Aug. 7, 2022, 3:11 p.m. ET

Republicans quickly voted no and bolted for their flights. But Democrats, triumphant after more than a year of work, hugged and congratulated each other on the floor.

Emily Cochrane
Aug. 7, 2022, 3:10 p.m. ET

Democratic senators took a moment to applaud the staff members who lined the back of the room, some of whom were wiping away tears as the senators cast their votes.

Emily Cochrane
Aug. 7, 2022, 3:05 p.m. ET

Senator Chuck Schumer of New York is triumphant on the Senate floor as he prepares for final passage. “It’s been a long, tough and winding road.”

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Emily Cochrane
Aug. 7, 2022, 3:03 p.m. ET

Vice President Kamala Harris is now in the chair, and gavels down the Warner amendment that capped off a marathon overnight vote-a-rama session.

Aug. 7, 2022, 3:00 p.m. ET

A push to remove the carried interest loophole failed after Sinema objected.

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Senators Kyrsten Sinema and Mitt Romney on Thursday between votes on Capitol Hill.Credit...Tom Brenner for The New York Times

The last-minute removal by Senate Democrats of a provision in the climate and tax legislation that would narrow what is often referred to as the carried interest loophole was the latest win for the private equity and hedge fund industries. For years, those businesses have successfully lobbied to kill bills that aimed to end or limit a quirk in the tax code that allows executives to pay lower rates than many of their salaried employees.

In recent weeks, it appeared that the benefit could be scaled back. But a last-minute intervention by Senator Kyrsten Sinema, Democrat of Arizona, eliminated what would have been a $14 billion tax increase targeting private equity.

Lawmakers’ inability to address a tax break that Democrats and some Republicans have called unfair underscores the influence of lobbyists for the finance industry and how difficult it can be to change the tax code.

In addition to doing away with the carried interest provision, the deal Democratic leaders cut with Ms. Sinema included a 1 percent excise tax on stock buybacks and changes to a minimum corporate tax of 15 percent that favored manufacturers.

Under existing law, that money is taxed at a capital-gains rate of 20 percent for top earners. That’s about half the rate of the top individual income tax bracket, which is 37 percent. A tax law passed by Republicans in 2017 largely left the treatment of carried interest intact, after an intense lobbying campaign, but it did narrow the exemption by requiring executives to hold their investments for at least three years in order to enjoy preferential tax treatment.

An agreement reached last month by Senator Joe Manchin III, Democrat of West Virginia, and Senator Chuck Schumer, Democrat of New York and the majority leader, would have extended that holding period to five years from three, while changing the way the period is calculated in hopes of reducing taxpayers’ ability to take advantage of the lower 20 percent tax rate.

But Ms. Sinema, who has received political donations from wealthy financiers who usually donate to Republicans and who was cool to the idea of targeting carried interest last year, objected.

She has said little about why she considered it so important to preserve the carried interest tax treatment, though she has said that she plans to work on legislation with Senator Mark Warner, Democrat of Virginia, to address the loophole. But if it is not included in the current package, which is being fast-tracked under an arcane budget process, any overhaul will require support from at least 10 Republicans.

Emily Cochrane contributed reporting.

Emily Cochrane
Aug. 7, 2022, 2:56 p.m. ET

This appears to be one of the last votes before final passage of the entire package, which was negotiated over 14 months and nearly fell apart again and again. The chamber is packed: almost every senator in their seat, and staff lining the walls.

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Emily Cochrane
Aug. 7, 2022, 2:49 p.m. ET

Six Democrats joined Sinema in backing the Thune amendment. But Mark Warner — offering what he says is the last substantive step before final passage — is putting forward an amendment whose changes will protect the overall package.

Emily Cochrane
Aug. 7, 2022, 2:42 p.m. ET

In a sign that Democrats are confident they are in the final stretch, Vice President Kamala Harris has arrived in the Senate, ostensibly to break the tie on final passage. Senators, who have been milling around restlessly, are now mostly seated and ready to vote.

Emily Cochrane
Aug. 7, 2022, 2:40 p.m. ET

Here’s how the Democrats’ big domestic agenda bill has shrunk.

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Senator Joe Manchin III, a centrist Democrat protective of his state’s oil and gas industries, forced his party to set aside many of its climate proposals.Credit...Tom Brenner for The New York Times

WASHINGTON — The sweeping climate change, health care and tax package that is on track to clear Congress this week is a major victory for President Biden and Democrats in Congress, who toiled for months to salvage as much as they could of a domestic agenda that met with solid Republican opposition and resistance from within their own ranks.

But the plan, which passed the Senate on Sunday, falls far short of the transformational cradle-to-grave social safety net plan that Mr. Biden had pitched, which would have invested trillions in public education, affordable child care and a federal paid leave program, paid for by an overhaul of the tax code to target the highest earners and big corporations.

Many of those elements were dropped as Democrats contended with the realities of their slim majorities in Congress and the demands of two Democratic holdouts, Senators Joe Manchin III of West Virginia and Kyrsten Sinema of Arizona, with conflicting priorities.

Here’s a look at how the Democrats’ domestic legislation has shrunk.

Climate change programs were scaled back.

How it started: President Biden made a variety of climate proposals central to his administration’s agenda, aiming to fulfill a pledge that the nation would reduce its emissions at least 50 percent below 2005 levels by the end of the decade. The proposals included the establishment of a Civilian Climate Corps, limits on offshore drilling, and ambitions to drive people and companies toward wind and solar power.

How it shrank: Mr. Manchin, a centrist Democrat protective of his state’s oil and gas industries, forced his party to set aside many of its climate proposals, including a plan that would have replaced coal- and gas-fired power plants with wind and solar power. In November, the House approved $555 billion for programs intended to curb fossil fuel emissions.

Where it stands now: Mr. Manchin signed off on nearly $400 billion in climate and energy programs, the largest federal investment toward battling climate change, but still well short of what Democrats had wanted. It was projected to cut greenhouse gas emissions about 40 percent below 2005 levels by the end of the decade. He also secured benefits for the fossil fuel industry and requirements for new oil drilling leases, as well as separate commitments to complete a natural gas pipeline in West Virginia and pass legislation to overhaul the permitting process for energy infrastructure.

Education, family and jobs initiatives were dropped.

How it started: Mr. Biden and Democrats pushed to redefine infrastructure beyond roads and bridges to include child care, a program to provide federal paid family and medical leave, and billions of dollars for college financial aid, housing support and home care. The House-passed bill also sought to maintain expanded monthly payments to families with children, which helped reduce child poverty.

How it shrank: Mr. Manchin expressed reservations about many of the programs, insisting that they should be limited only to the people who needed them — if they were included at all. When Mr. Manchin rejected a $2.2 trillion version of the domestic policy plan passed by the House last fall, the monthly payments aimed at reducing child poverty lapsed at the end of 2021.

Where it stands now: The programs were scrapped at Mr. Manchin’s insistence. Top Democrats spent time on the Senate floor Saturday vowing to pursue them in future legislation, though it was unlikely they could draw the requisite level of Republican support to do so.

A Medicare expansion fell, but a drug price reduction plan was added.

How it started: Mr. Biden, backed by leading liberals like Senator Bernie Sanders, the Vermont independent, pushed to expand not only the scope of the Affordable Care Act, but Medicare benefits to cover hearing, dental and vision.

How it shrank: As lawmakers whittled down a $3.5 trillion budget blueprint, the House agreed to spend $165 billion to cover hearing for Medicare, provide insurance for an additional four million people through Medicaid and continue reducing health care premiums for people covered through the Obamacare marketplace.

Where it stands now: The Medicare expansion was among the items dropped in negotiations with Mr. Manchin. In a deal he struck late last month with Senator Chuck Schumer, Democrat of New York and the majority leader, the bill includes a three-year extension of expanded Affordable Care Act subsidies, set to expire at the end of the year, for an additional three years.

Democrats also added a plan aimed at lowering the cost of prescription drugs, fulfilling a longstanding goal of allowing Medicare to negotiate the prices of prescription drugs directly. The legislation would also cap the out-of-pocket amount that Medicare patients can be asked to pay for prescription drugs at $2,000 each year and restrict how much drug companies can increase prices for Medicare.

Hundreds of billions in proposed tax increases were abandoned.

How it started: Democrats had envisioned a sweeping effort to make the tax code more fair that would roll back the tax cuts Republicans pushed through in 2017, vastly increasing what is paid by the wealthiest people and corporations. The House legislation was projected to bring in nearly $1.5 trillion over a decade by substantially increasing taxes on corporations and high earners.

How it shrank: Ms. Sinema objected to increasing most tax rates, throwing her support behind other tax-raising ideas that met with some pushback. She insisted on dropping a proposal aimed at narrowing a tax break for hedge funds and private equity managers that Mr. Manchin had pushed to include in the plan, which would have raised about $14 billion.

Where it stands now: To counter Ms. Sinema’s opposition to tax rate increases, Democrats included a more complicated 15 percent minimum tax on corporations. They narrowed that provision even further on Sunday, after a Republican amendment during the vote-a-rama, and included an extension of a deduction that small businesses take that had been scaled back under the 2017 tax law and was set to expire.

They also agreed to a 1 percent increase on company stock buybacks, set to go into effect in 2023. And in a bid to crack down on wealthy tax evaders, Democrats plan to invest $80 billion in enforcement at the Internal Revenue Service.

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Emily Cochrane
Aug. 7, 2022, 2:36 p.m. ET

After a frenzied few hours, it appears Democrats are ready to navigate out of an unexpected amendment jam. Senator John Thune of South Dakota is offering his amendment to take out a $35 billion tax provision, offset by a one-year extension of the so-called SALT cap. Senator Kyrsten Sinema of Arizona was leaning toward supporting it, but it appears Democrats have developed an alternative.

Lisa Friedman
Aug. 7, 2022, 2:30 p.m. ET

The bill would be the largest infusion of federal funding to steer the country away from fossil fuels.

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Offshore wind farm turbines near Block Island, R.I., in 2017. The measure would invest $369 billion over 10 years in tax credits and incentives to bolster wind and solar power and electric vehicles.Credit...Chang W. Lee/The New York Times

The Inflation Reduction Act would be the first significant legislation in U.S. history to slow climate change, delivering the largest-ever infusion of federal funding to pivot the country away from the fossil fuels that are driving global warming.

It would invest $369 billion over 10 years in tax credits and incentives to bolster wind and solar power and electric vehicles, as well as nascent technologies like carbon capture and storage, and low-emissions hydrogen.

Several analyses have shown that the measure will help the United States slash greenhouse gas emissions about 40 percent below 2005 levels by the end of this decade. The bill alone will not fulfill President Biden’s goal of cutting emissions roughly in half by 2030, but it will get close.

Senator Chuck Schumer, Democrat of New York and the majority leader, called the bill on Saturday “the boldest clean-energy package in American history” and said it would “deliver to our children and grandchildren the planet they deserve.”

A number of fossil fuel provisions are also tucked into the 755-page bill, including one that requires the federal government to hold oil and gas lease sales in the Gulf of Mexico and the Cook Inlet in Alaska. It also requires the Interior Department to continue to hold auctions for fossil fuel leases if it plans to approve new wind or solar projects on federal lands.

Senator Joe Manchin III of West Virginia, whose state is a major producer of oil and gas, won those and other concessions during months of negotiations with other Senate Democrats.

Senator Bernie Sanders, independent of Vermont, on Sunday called those provisions “incompatible” with tackling climate change. But several analyses, including from large environmental groups, found that the emissions cuts from the legislation would be as much as 10 times greater than the effects from the support it extends to fossil fuels.

Scientists said Congress and the Biden administration would still have to take more steps to prevent dangerously high global temperatures even if the bill passes, including regulating automobile and power plant emissions and methane leaks from oil and gas wells.

Emily Cochrane
Aug. 7, 2022, 2:01 p.m. ET

Senator Sherrod Brown, Democrat of Ohio, captures the mood here: “It’s just all chaos now until the end.” Senators are expressing some optimism that the last-minute amendment wrinkles have been resolved.

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Lisa Friedman
Aug. 7, 2022, 1:46 p.m. ET

Two Republicans move to protect the ethanol industry.

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The production line of the Ford F-150 Lightning, an electric pickup, in Dearborn, Mich. The average price for an electric vehicle in the United States is about $66,000, compared with $46,000 for all new cars.Credit...Brittany Greeson for The New York Times

Two Republicans from farming states are taking aim at electric vehicles, which some see as a threat to the corn-based ethanol industry.

One amendment from Senator Joni Ernst, Republican of Iowa, would prohibit a planned $7,500 tax credit for new electric vehicles from being used if any battery materials were extracted or processed by a country known to use slave or child labor. Chinese-owned cobalt and lithium mines in the Democratic Republic of Congo have been accused of using child labor.

Another amendment from Senator Deb Fischer, Republican of Nebraska, would limit the use of the electric vehicle tax credit and prohibit it from being used for any vehicle costing more than $42,000. The average price for an electric vehicle in the United States is about $66,000, compared with $46,000 for all new cars.

It also would limit the tax credit to buyers with an annual income of less than $75,000.

Both lawmakers are strong supporters of ethanol, which is made from corn and other crops produced in their states and has been mixed into some types of gasoline for years as a way to reduce reliance on oil.

The amendments are expected to fail.

Emily Cochrane
Aug. 7, 2022, 1:40 p.m. ET

Part of the wrinkle with Senator Thune’s amendment is that it would extend the cap on state and local tax deductions — something northeastern Democrats fought to lift in earlier versions of the spending and tax packages. Should that language pass, it could be a nonstarter for other lawmakers.

Emily CochraneLisa Friedman
Aug. 7, 2022, 1:33 p.m. ET

Here is what’s in the climate, tax and health care package.

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A petrochemicals refinery unit in Port Arthur, Texas. Legislation on the verge of Senate passage would be the largest single U.S. investment in fighting climate change.Credit...Brandon Thibodeaux for The New York Times

WASHINGTON — After months of painstaking negotiations, Democrats are set to push through a climate, tax and health care package that would salvage key elements of President Biden’s domestic agenda.

The legislation, while falling far short of the ambitious $2.2 trillion Build Back Better Act that the House passed in November, fulfills multiple longstanding Democratic goals, including countering the toll of climate change on a rapidly warming planet, taking steps to lower the cost of prescription drugs and to revamping portions of the tax code in a bid to make it more equitable.

Here’s what’s in the final package:

It is the largest single American investment to slow global warming.

The bill includes the largest expenditures ever made by the federal government to slow global warming and to reduce demand for the fossil fuels that are primarily responsible for causing climate change.

It would invest nearly $400 billion over 10 years in tax credits aimed at steering consumers to electric vehicles and prodding electric utilities toward renewable energy sources like wind or solar power.

Energy experts said the measure would help the United States to cut greenhouse gas emissions about 40 percent below 2005 levels by the end of this decade. That puts the Biden administration in striking distance of meeting its goal of cutting emissions roughly in half by 2030. Far more will be needed to help keep the planet from warming to dangerously high global temperatures, scientists said, but Democrats considered it a momentous first step after decades of inaction.

At the same time, Democrats agreed to a number of fossil fuel and drilling provisions as concessions to Senator Joe Manchin III of West Virginia, a holdout from a conservative state that is heavily dependent on coal and gas.

The measure would assure new oil drilling leases in the Gulf of Mexico and Alaska’s Cook Inlet. It would expand tax credits for carbon capture technology that could allow coal or gas-burning power plants to keep operating with lower emissions. And it would mandate that the Interior Department continue to hold auctions for fossil fuel leases if it plans to approve new wind or solar projects on federal lands.

The tax credits include $30 billion to speed the production of solar panels, wind turbines, batteries and critical minerals processing; $10 billion to build facilities to manufacture things like electric vehicles and solar panels; and $500 million through the Defense Production Act for heat pumps and critical minerals processing.

There is $60 billion to help disadvantaged areas that are disproportionately affected by climate change, including $27 billion for the creation of what would be the first national “green bank” to help drive investments in clean energy projects — particularly in poor communities. The bill would also force oil and gas companies to pay fees as high as $1,500 a ton to address excess leaks of methane, a powerful greenhouse gas, and it would undo a 10-year moratorium on offshore wind leasing established by President Donald J. Trump.

Medicare could directly negotiate the price of prescription drugs, pushing down costs.

For the first time, Medicare would be allowed to negotiate with drugmakers on the price of prescription medicines, a proposal projected to save the federal government billions of dollars. That would apply to 10 drugs initially, beginning in 2026, and then expand to include more drugs in the following years.

Opponents argue that the plan would stifle innovation and the development of new treatments by cutting into the profits that drug companies can plow into their business, while some liberals expressed frustration that the policy would be too slow to take hold. Should the package become law, as expected, it would be the largest expansion of federal health policy since passage of the Affordable Care Act.

The package would cap the out-of-pocket costs that seniors pay annually for prescription drugs at $2,000, and would ensure that seniors have access to free vaccines. Lawmakers also included a rebate should price increases outpace the rate of inflation. (Top Senate rules officials, however, said that penalty could apply only to Medicare, not private insurers.)

Republicans successfully challenged the inclusion of a $35 price cap on insulin for patients on private insurance during a rapid-fire series of amendment votes early Sunday morning, forcing its removal. But a separate proposal that caps the price of insulin at $35 per month for Medicare patients remained intact.

Expanded health care subsidies would be extended.

As part of the $1.9 trillion pandemic aid law that Democrats muscled through last year, lawmakers agreed to broaden subsidies available under the Affordable Care Act. That proposal lowered premiums for almost every American who relies on the program’s marketplace, either making some plans free for lower-income people or extending some support to higher-income people who previously did not receive any aid.

The package would extend those subsidies, now set to expire at the end of the year, for an additional three years. Democrats fear a backlash in the November midterm elections if they allow the subsidies to lapse.

Wealthy corporations will see a tax hike, while the I.R.S. will get a funding boost.

The tax proposals were shaped by Senator Kyrsten Sinema, Democrat of Arizona, who resisted her party’s push to increase tax rates on the country’s wealthiest corporations and individuals.

To avoid the rate increase Ms. Sinema opposed, Democrats instead settled on a far more complex change to the tax code: a new 15 percent corporate minimum tax on the profits companies report to shareholders. It would apply to companies that report more than $1 billion in annual income on their financial statements but that are also able to use credits, deductions and other tax treatments to lower their effective tax rates.

Ms. Sinema did protect a deduction that would benefit manufacturers, a change she successfully demanded before committing on Thursday to moving forward with the legislation. And she joined six other Democrats and all Republicans in narrowing the scope of that corporate minimum tax by backing an amendment in the final hours of the vote-a-rama Sunday afternoon.

Democrats, to make up for the loss of revenue forced by that amendment, extended a limit on tax deductions for business losses that was enacted as part of the Trump tax cuts in 2017.

She also forced the removal of a proposal supported by Democrats and Republicans that would have narrowed a tax break used by both hedge fund and private equity industries to secure lower tax rates than their entry-level employees. And she committed to pursuing separate legislation outside of the budget package, but that would require at least 10 Republicans to support it.

The legislation would also bolster the I.R.S. with an investment of about $80 billion, hoping to recover additional tax revenue by cracking down on wealthy corporations and wealthy tax evaders.

Republicans, who have historically opposed shoring up funds for the agency, have argued that this will increase audits and scrutiny on lower-income households. The I.R.S., in turn, has dismissed the concern, telling Congress that “these resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans.”

Jim Tankersley contributed reporting.

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Stephanie Lai
Aug. 7, 2022, 1:20 p.m. ET

Will the bill curb inflation? Democrats think it will, but not immediately.

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Senator Richard Blumenthal, Democrat of Connecticut, outside the Senate chamber on Saturday. “We’re going to see costs of gasoline continue to drop, costs of necessities to decline,” he said on CNN on Sunday.Credit...Tom Brenner for The New York Times

The estimated effect of the Senate’s climate and tax bill on inflation was among the many points Democrats defended on Saturday night and into Sunday morning.

Some economic analyses, including from the Congressional Budget Office, found that the legislation would have little to no impact on inflation this year.

Senator Richard Blumenthal, Democrat of Connecticut, said on CNN’s “State of the Union” on Sunday that prescription drug costs would fall after Medicare negotiations and energy costs would be reduced from credits and rebates.

“We’re going to see costs of gasoline continue to drop, costs of necessities to decline,” Mr. Blumenthal said. “And I think Americans will see historic results.”

Senator Lindsey Graham, Republican of South Carolina, also appeared on “State of the Union” on Sunday. He said that the bill could discourage companies from investing in equipment and factories, and that the tax on imported barrels of oil could raise gas prices for consumers.

Senator Chris Coons, Democrat of Delaware, said on “This Week” on ABC that Americans might not feel the bill’s cost-saving effects this year or next. But “the Treasury secretaries that have served in both Republican and Democratic administrations support this bill,” he added.

On “Fox News Sunday,” Senator Benjamin L. Cardin, Democrat of Maryland, also said the bill would help lower inflation. The bill would reduce the deficit through its cost-saving measures, he said.

Stephanie Lai
Aug. 7, 2022, 1:08 p.m. ET

“Obviously, I’d like to get her and many others to support the amendment,” Thune said of Sinema. “But how she comes down is up to her.”

Stephanie Lai
Aug. 7, 2022, 1:08 p.m. ET

“Hopefully we’ll have a solution to land the plane,” said Senator John Thune of South Dakota, the No. 2 Republican. “We’re kind of on the descent, I would say right now.” He declined to talk about his conversations with other senators.

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Stephanie Lai
Aug. 7, 2022, 1:08 p.m. ET

There are rumblings about issues with an upcoming amendment as Republicans and lobbyists try to reverse a proposal that would make the 15 percent corporate minimum tax apply to companies that are owned by private equity funds if their combined income puts the private equity fund’s total income over $1 billion. Senator Kyrsten Sinema, Democrat of Arizona, is seen as a possible supporter of the change, which could reduce the bill’s revenue by billions.

Emily Cochrane
Aug. 7, 2022, 1:00 p.m. ET

Republicans force the removal of a measure that would cap insulin prices at $35 for private insurers.

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More than 3.3 million people on Medicare receive some common form of insulin.Credit...Charity Rachelle for The New York Times

Senate Republicans on Sunday forced the removal of a Democratic proposal that would have capped insulin prices at $35 for private insurers, even as seven Republicans joined all 50 members of the Democratic caucus in an effort to preserve the provision in the climate, tax and health care spending bill.

Left untouched as of Sunday morning, however, was a separate proposal that caps insulin at $35 per month for Medicare patients. More than 3.3 million people on Medicare receive some common form of insulin, according to the Centers for Medicare & Medicaid Services.

The cap for private insurers was widely viewed as a violation of the strict budgetary rules that govern the reconciliation process Democrats are using to fast-track the package and shield it from a Republican filibuster. But Democrats intentionally did not drop the provision, daring Republicans to vote on the Senate floor to strip it out.

“We have an opportunity to make a difference and permanently cap insulin,” said Senator Patty Murray of Washington, the chairwoman of the Senate health committee. She added, “This should not be a hard vote to cast.”

Republicans instead offered a separate amendment, which Democrats dismissed as too weak and opposed, before Senator Lindsey Graham, Republican of South Carolina, challenged the inclusion of the original private market proposal.

Seven Republicans joined the entire Democratic caucus in voting to preserve the insulin cap, but the 57-to-43 margin was not enough to meet the 60-vote threshold needed to overrule the challenge. The Republicans were Senators Susan Collins of Maine, Josh Hawley of Missouri, Cindy Hyde-Smith of Mississippi, Lisa Murkowski and Dan Sullivan of Alaska, and John Kennedy and Bill Cassidy of Louisiana.

Some lawmakers, led by Ms. Collins and Senator Jeanne Shaheen, Democrat of New Hampshire, had sought to pass a separate insulin pricing bill outside the budget process. But that required 60 votes to advance on the Senate floor, and the vote on Sunday showed that there was most likely not enough Republican support for that measure.

Stephanie Lai
Aug. 7, 2022, 12:42 p.m. ET

Senate holds an all-night ‘vote-a-rama,’ with Democrats’ agenda at stake.

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A Senate staff member taking a break during the “vote-a-rama,” an hourslong series of proposed amendments, on Sunday morning.Credit...Haiyun Jiang/The New York Times

WASHINGTON — A bleary-eyed Senator Joe Manchin III, the West Virginia Democrat who brokered the climate, health and tax deal that was on a glide path to passage within hours, sat silently at his desk in the Senate chamber around midnight on Saturday, gazing blankly into the middle distance as he munched on M&Ms.

A triumph was nearly at hand on a substantial piece of Democrats’ domestic agenda — but first, Mr. Manchin and his colleagues would have to pull an all-nighter, fueled by junk food and caffeine, perhaps some liquor and plenty of politically charged speeches, as they debated and voted on a rapid-fire series of nonbinding amendments.

The vote-a-rama (yes, it is actually called that), a familiar but reviled ritual for the octogenarians and elders who make up the Senate, began late Saturday night and stretched into Sunday afternoon. It was a final chance for Republicans to try to derail Democrats’ top legislative priority — or at least to lob political attacks against them on its path to passage — and a test of Democratic resolve to preserve their delicate compromise.

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Senator Joe Manchin III helped broker the climate, health and tax deal.Credit...Tom Brenner for The New York Times
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Senator Kirsten Gillibrand, Democrat of New York, exiting the Senate chamber.Credit...Tom Brenner for The New York Times
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Senator Rick Scott, Republican of Florida, took a phone call during the vote-a-rama.Credit...Tom Brenner for The New York Times

It was also the ultimate display of senatorial weirdness and dysfunction — a time-consuming exercise that has little impact on policy but keeps senators up through the night, ending only when they run out of steam for offering more amendments. That happened on Sunday afternoon, after about 16 hours.

“You know how much I’ll miss vote-a-rama?” said Senator Patrick J. Toomey, a Pennsylvania Republican who is retiring this year. “The answer is not at all.”

The vote-a-rama is part of the arcane process known as reconciliation that Democrats are using to speed their sweeping climate, energy and tax package through Congress. It shields certain budget-related legislation from a filibuster, allowing it to pass with a simple majority rather than the normal 60 votes needed to avoid a Republican filibuster. But it also allows any senator to offer any proposal to change the legislation when it reaches the floor. That gives rise to all manner of political point-making — in this case, just a few months before midterm elections.

In anticipation of the theatrics, senators stocked their offices with blankets, snacks and energy drinks. Takeout food containers could be spotted throughout the Capitol hallways on Saturday night. By 8 a.m. on Sunday, more than eight hours after it began, senators reclined in their chairs and Senator Jeff Merkley, Democrat of Oregon, let out a yawn and rubbed his eyes.

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Senator Ron Wyden, Democrat of Oregon, discussing the tax provisions in the legislation.Credit...Haiyun Jiang/The New York Times
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The vote-a-rama began late Saturday night and stretched into Sunday afternoon.Credit...Haiyun Jiang/The New York Times
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A staff member carrying caffeinated drinks before the start of voting.Credit...Haiyun Jiang/The New York Times
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Senator Debbie Stabenow, Democrat of Michigan, spoke to journalists before the votes.Credit...Tom Brenner for The New York Times

It was the fourth vote-a-rama for the current Congress, with previous episodes each drawing about 40 votes. This time as in the past, Democrats stood together to fend off Republican efforts to torpedo their bill, defeating amendments along party lines. In total, 41 proposed changes were considered and voted upon.

They included an attempt to slash the funding for the Internal Revenue Service and the Environmental Protection Agency. Republican senators also tried and failed to add oil and gas lease sales in certain states.

In a bid to squeeze Democrats on a politically potent issue, Republicans forced a vote taking out a tax on gas and energy companies, which they argued could drive the country into a recession and raise prices at the pump.

Republicans succeeded in making a couple of changes to the bill, including striking a provision that would have capped insulin prices at $35 per month. Democrats left it in the legislation even amid concern that it could violate reconciliation rules, effectively daring Republicans to demand the removal of a popular measure and go on the record voting to do so. (The action left the cap intact for Medicare patients, millions of whom have diabetes and could still benefit from it.)

Republicans, with the help of seven Democrats including Senator Kyrsten Sinema of Arizona, also won a change that would narrow the scope of a new 15 percent corporate minimum tax.

Members of the Democratic caucus also used the process to make their own political points. Senator Bernie Sanders, 80, the Vermont independent and Budget Committee chairman, offered up several proposals throughout the night to express his disappointment over how much the bill had been scaled back. “This could be actually the very last time in a long time that people are going to have the opportunity to vote” on progressive issues, Mr. Sanders said on Sunday morning at about 8:30, his eyes bloodshot after a sleepless night.

But Democrats were determined to resist the temptation to alter the legislation even slightly, fearful of losing the unanimous support of their caucus for a fragile compromise.

“This one is so delicately balanced that ANY amendment, even a ‘good’ one, risks upsetting the balance — so look forward to a lot of ‘no’ votes on things we would ordinarily want,” Senator Sheldon Whitehouse, Democrat of Rhode Island, explained in a Twitter post.

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Senator Chuck Schumer, the majority leader, and Mr. Manchin stunned their colleagues with an agreement to include hundreds of billions of dollars for climate and energy programs in the legislation.Credit...Haiyun Jiang/The New York Times
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Senator Bernie Sanders has been vocal about his disappointment with how much the bill has been scaled back.Credit...Kenny Holston for The New York Times
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The vote-a-rama brought Senator Patrick Leahy to the Capitol for the first time since his hip surgery last month.Credit...Kenny Holston for The New York Times
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Senate staff members stayed throughout the night.Credit...Haiyun Jiang/The New York Times

The ongoing coronavirus pandemic added yet another element of risk to the session, as the 100 senators — the oldest class in recent history — gathered for hours on end to cast votes in a confined indoor space. With their bare-minimum margin of control in the 50-50 Senate, Democrats could not afford even one illness that could deprive them of their majority.

“With the way Covid numbers are now, it’s likely one of those individuals could have Covid,” said Kirsten Coleman, an assistant research professor at the University of Maryland’s School of Public Health, who noted that the event created the perfect conditions for a superspreader event.

“I would be especially cautious because there is an older age group, which is at higher risk for more severe illness if they do catch Covid,” she added.

Senator John Cornyn, Republican of Texas, wondered aloud whether Democrats might have opted not to test for Covid to avoid imperiling their bill, saying that doing so for the voting marathon could endanger “not only each other, but the staff members, the Capitol Police, the custodial staff, food service workers and countless others who keep this institution running.”

Senator Dianne Feinstein, 89, said she was not especially concerned, as she planned to be masked and take necessary precautions. She added that she had been testing in the lead-up to the weekend.

“I’m not afraid of it. We do the best we can,” Ms. Feinstein said.

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Senator John Hickenlooper outside of the Capitol. All 50 members of the Democratic caucus will have to remain united to ward off changes proposed by Republicans and win final passage.Credit...Haiyun Jiang/The New York Times
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Senator John Thune of South Dakota spoke to reporters. Republicans have acknowledged that their chances of derailing the bill are slim.Credit...Kenny Holston for The New York Times
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Business carried on mostly as usual despite the coronavirus.Credit...Haiyun Jiang/The New York Times

Senator Brian Schatz, Democrat of Hawaii, said he resumed wearing N-95 masks last week because he “didn’t want to get Covid and blow this.”

Still, business carried on as usual with mostly unmasked lawmakers huddled on the Senate floor instead of isolated in their personal offices, as many did in vote-a-ramas last year.

The vote-a-rama brought Senator Patrick Leahy, 82, Democrat of Vermont, back to the Capitol for the first time since his hip surgery last month. An aide escorted the senator, who serves as the president pro tempore, through the Capitol in a wheelchair adorned with a Batman sticker.

Senators prepared for the long evening as they normally did for vote-a-ramas: naps and stocking their offices with comfort foods and other items.

Senator Ben Sasse, Republican of Nebraska, said on the Senate floor that he had caught two hours of shut-eye before the fast-paced votes began.

Ms. Feinstein said she had Mounds bars and soft drinks readied; Senator Tina Smith, Democrat of Minnesota, had her beloved Atomic Fireballs in her purse for easy access; and Senator Bob Casey, Democrat of Pennsylvania, stocked cotton candy- and Hot Tamales-flavored Peeps, a product of his home state, for his staff to enjoy.

Mr. Schatz stocked his office with extra battery packs for his cellphone, a hoodie, drinks “and a little booze,” he said.

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A Capitol Police officer before voting began on Saturday.Credit...Haiyun Jiang/The New York Times

Emily Cochrane contributed reporting.

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Emily CochraneLuke Broadwater
Aug. 7, 2022, 12:30 p.m. ET

Democrats hold off Republican amendments, and some of their own.

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Senator Bernie Sanders of Vermont, an independent who caucuses with Democrats, tried to push the bill in a more progressive direction and recapture some of the policy items that had been cut from President Biden’s initial package during negotiations.Credit...Haiyun Jiang/The New York Times

For Republicans, the hourslong ritual of the vote-a-rama served as a last-ditch effort to inflict political pain over a package they have no intention of supporting.

They railed against the hundreds of billions of dollars in climate spending, tried to siphon funds toward restricting immigration at the southwestern border and repeatedly attacked a $80 billion plan to beef up tax enforcement at the I.R.S.

It also became an opportunity to encourage those watching on C-SPAN, however few, to back Republicans in November.

“If you’re tired of paying high gas prices, then vote Republican,” Senator Lindsey Graham, Republican of South Carolina, concluded after pushing back against one amendment.

While Democrats beat back most of the Republican amendments over nearly 16 hours, they used a tricky procedural maneuver in some cases that allowed a few Democrats to vote in favor of changes that could help them politically without endangering passage of the final bill. For example, Senator Raphael Warnock of Georgia, who is up for re-election in November, proposed a change to close the Medicaid gap in his state. Because Democrats set the bar for passage of the measure at 60 votes, Mr. Warnock could vote yes without any chance the amendment would be adopted.

One Republican challenge has prevailed: a move to strip a $35 insulin cap for private insurers as a violation of the strict rules governing the process. An effort to preserve that proposal fell short of the 60-vote threshold. And in the final hours of the vote-a-rama early Sunday afternoon, seven Democrats joined all Republicans in narrowing the scope of the 15 percent corporate minimum tax.

While Republicans proposed most of the amendments, Senator Bernie Sanders of Vermont, an independent who caucuses with Democrats, tried to push the bill in a progressive direction and recapture some of the policy items in Mr. Biden’s initial package that had been cut during negotiations.

Mr. Sanders forced a series of votes that included a cap on the costs of prescription drugs, extending the child care tax credit and establishing a civilian climate corps.

But his amendments failed by large margins: 1-99, 1-98 or 1-97. Many Democrats had pledged before the vote-a-rama to stick together as a voting bloc to preserve the delicate coalition of progressives and centrists brought together to support the legislation. The amendment votes put his colleagues in an uncomfortable position.

“Come on, Bernie,” Senator Sherrod Brown of Ohio could be heard muttering after he explained that he would oppose the inclusion of expanded payments to most families with children — a policy he has long championed — to protect the broader deal.

Mr. Sanders said he felt he had to push for the policies because Democrats could lose control of Congress in the midterm elections.

“We don’t know what the election results will be,” he said. “This could be actually the very last time in a long time that people are going to have the opportunity to vote on child tax care credit.”

Stephanie Lai contributed reporting.

Emily Cochrane
Aug. 7, 2022, 12:08 p.m. ET

Regardless of procedural chaos, the decorum of the Senate always prevails. Because the chamber has been in session for 24 hours straight, everything is going to pause for the pledge and prayer.

Emily Cochrane
Aug. 7, 2022, 11:39 a.m. ET

The vote-a-rama has now crossed the 12-hour mark, having begun 11:31 p.m. Saturday. But there is still no indication of when the votes may end, as Republicans continue to offer amendments.

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Emily Cochrane
Aug. 7, 2022, 11:04 a.m. ET

The $35 cap on insulin prices for private insurers is officially out of the bill. Seven Republicans voted with Democrats to keep the cap for private insurers in the bill, but a 57-to-43 margin is three votes short of overcoming the objection.

Emily Cochrane
Aug. 7, 2022, 10:43 a.m. ET

Republicans, as expected, are currently challenging the $35 cap on insulin prices for the private marketplace, as a violation of the strict budget rules governing passage of this bill. But Senator Lindsey Graham, Republican of South Carolina, did not challenge the $35 cap for Medicare patients, which appears likely to remain in the legislation.

Emily Cochrane
Aug. 7, 2022, 10:17 a.m. ET

Even if Republicans strip out the $35 cap for the commercial market and private insurers because they violate the strict budget rules, some Democrats are optimistic that they will be able to keep the cap for Medicare. The top Senate rules official previously said that a separate inflation rebate could apply to Medicare, not private insurers, which has buoyed Democratic hopes that some patients will be able to benefit from the cap.

Emily Cochrane
Aug. 7, 2022, 10:09 a.m. ET

This amendment is essentially a bid to show Republican support for addressing the cost of insulin, though Democrats will oppose it as insufficient. It comes right before Republicans are expected to strip out the Democratic-authored insulin proposal in the bill for violating Senate rules — which Democrats essentially kept in for the purpose of daring them to block a cap on insulin prices for all patients.

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Emily Cochrane
Aug. 7, 2022, 10:04 a.m. ET

Most of the amendments from Republicans are political poison pills for Democrats. But this insulin amendment from Senator John Kennedy of Louisiana is about to kick off an interesting political chain of events here.

Emily Cochrane
Aug. 7, 2022, 9:49 a.m. ET

Sinema’s support for the climate and tax deal cleared the way for votes.

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Senator Kyrsten Sinema, Democrat of Arizona, had been her party’s final holdout on the package.Credit...Tom Brenner for The New York Times

Senator Kyrsten Sinema, Democrat of Arizona, announced on Thursday that she would support moving forward with her party’s climate, tax and health care package, clearing the way for a major piece of President Biden’s domestic agenda to move through the Senate this weekend.

To win Ms. Sinema’s backing, Democratic leaders agreed to drop a $14 billion tax increase on some wealthy hedge fund managers and private equity executives that she had opposed, to change the structure of a 15 percent minimum tax on corporations, and to include drought money to benefit Arizona.

Ms. Sinema had been the final holdout on the package after Senator Joe Manchin III, Democrat of West Virginia, struck a deal with top Democrats late last month that resurrected a plan that had appeared to have collapsed.

Her support brought Democrats closer to enacting the package and salvaging key pieces of their domestic agenda. It came just over a week after Mr. Manchin and Senator Chuck Schumer, Democrat of New York and the majority leader, stunned their colleagues with an agreement to include in the legislation hundreds of billions of dollars for climate and energy programs and tax increases, on top of a proposal to reduce the price of prescription drugs and to extend expanded health insurance subsidies.

“For over a year, I’ve made clear the importance of ensuring all legislation stays thoughtful and targeted to help our economy grow,” Ms. Sinema said in a statement on Saturday after a key procedural vote.

The final package, she added, “lowers costs for everyday Arizonans, makes health care more affordable and accessible, secures Arizona’s water and energy future, and creates jobs — and does so in a way that boosts Arizona’s innovation and economic competitiveness so Arizonans can build better lives for themselves and their families.”

With Republicans united in opposition, the measure needs the unanimous support of Democrats to move forward in the 50-50 Senate, so Democrats cannot afford even one defection.

Ms. Sinema had insisted on the removal of a provision that would have limited the preferential tax treatment of income earned by some wealthy hedge fund managers and private equity executives. Democrats instead added a new 1 percent excise tax that companies would have to pay on the amount of stock they repurchase.

That provision, Democrats said, was included to ensure that the package still reduces the federal deficit by as much as $300 billion, the same amount that Democrats aimed for with the original deal and a key priority for Mr. Manchin.

While most Democrats had been quick to rally around the deal that Mr. Manchin reached with Mr. Schumer when it was announced last month, Ms. Sinema had refused to weigh in and privately signaled that changes, particularly to the tax proposals, would be needed to win her vote.

An enigmatic centrist, Ms. Sinema had already forced her party to abandon its plans to overhaul much of the tax code, and her characteristic silence frustrated Democrats eager to take up the bill. After hearing that she had given the bill her support, several Democratic senators and aides celebrated, confident that final passage was within reach.

Alan Rappeport contributed reporting.

Emily Cochrane
Aug. 7, 2022, 8:57 a.m. ET

While Democrats have beaten back amendments they support, they have also used a tricky procedural maneuver to hold some votes at a 60-vote threshold so their politically vulnerable peers can stake key positions without derailing final passage. Raphael Warnock of Georgia, for example, just proposed a change to close the Medicaid gap in his state, but with a higher bar for passage he can vote yes and not imperil the bill.

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Emily Cochrane
Aug. 7, 2022, 8:22 a.m. ET

Just now, Sanders tried to woo the support of his caucus behind an amendment that would restore monthly expanded payments to most families with children — a plan all but one Democrat support. But it failed 1 to 97, as Democrats kept a promise to vote down most amendments to protect the overall package. (“C’mon Bernie,” Sherrod Brown of Ohio could be heard muttering on a hot mic after a slightly testy exchange.)

Emily Cochrane
Aug. 7, 2022, 8:21 a.m. ET

Most of the amendments we’ve seen overnight have been from Republicans, furious about legislation they unanimously oppose and looking to inflict political pain. But one Democrat — Senator Bernie Sanders of Vermont, who has been vocal about his disappointment with how much his party scaled back the bill — has also sought to force changes.

Emily Cochrane
Aug. 7, 2022, 8:17 a.m. ET

The Senate is on hour eight of the laborious ritual known as “vote-a-rama,” after starting just after 11:30 last night. Senators are yawning — there are bleary eyes and lots of caffeine — but Republicans are expected to force votes for at least another few hours in a last-ditch effort to change the bill.

Alan Rappeport
Aug. 7, 2022, 8:04 a.m. ET

A new corporate minimum tax could reshape investments and change how the government collects revenue.

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Senator Ron Wyden of Oregon, the Democratic chairman of the Senate Finance Committee, before a news conference on Thursday. “Companies are paying rock-bottom rates while reporting record profits to their shareholders,” he said.Credit...Tom Brenner for The New York Times

At the center of the climate and tax package that Democrats appear to be on the verge of passing is one of the most significant changes to the United States’ tax code in decades: a new corporate minimum tax that could reshape how the federal government collects revenue and alter how the most profitable companies invest in their businesses.

The proposal is one of the last remaining tax increases in the package that Democrats are aiming to pass along party lines. After months of intraparty disagreement over whether to raise taxes on the wealthy or roll back some of the 2017 Republican tax cuts to fund their agenda, they have settled on a longstanding political ambition to ensure that large and profitable companies pay more than $0 in federal taxes.

To accomplish this, Democrats have recreated a policy that was last employed in the 1980s: trying to capture tax revenue from companies that report a profit to shareholders on their financial statements while bulking up on deductions to whittle down their tax bills.

The re-emergence of the corporate minimum tax, which would apply to what is known as the “book income” that companies report on their financial statements, has prompted confusion and fierce lobbying resistance since it was announced last month.

Republicans have misleadingly tried to seize on the tax increase as evidence that President Biden was ready to break his campaign promises and raise taxes on middle-class workers. And manufacturers have warned that it would impose new costs at a time of rapid inflation.

Seven Democrats — led by Senator Kyrsten Sinema, an Arizona centrist whose aversion to tax increases sparked the policy — backed a Republican amendment that narrowed the scope of the proposal after concerns about small businesses being impacted. Republicans estimated that it would sap $35 billion from the overall revenue raised by the provision.

The new 15 percent minimum tax would apply to corporations that report annual income of more than $1 billion to shareholders on their financial statements but use deductions, credits and other preferential tax treatments to reduce their effective tax rates well below the statutory 21 percent. It was originally projected to raise $313 billion in tax revenue over a decade, though the final tally is most likely to be $258 billion once the revised bill is completed.

The new tax could also inject a greater degree of complexity into the tax code, creating challenges in carrying out the law if it is passed.

Because of that complexity, the corporate minimum tax has faced substantial skepticism. It is less efficient than simply eliminating deductions or raising the corporate tax rate and could open the door for companies to find new ways to make their income appear lower to reduce their tax bills.

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