Schumer, Manchin announce deal on reconciliation bill with tax,

Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., on Wednesday announced that they have struck a long-awaited deal on legislation that aims to reform the tax code, fight climate change and cut health-care costs.

The bill would invest more than $400 billion over 10 years, to be fully paid for by closing tax loopholes on the richest Americans and corporations, the senators said in a joint statement. It would reduce deficits by $300 billion over that decade, the senators said, citing estimates from nonpartisan congressional tax and budget offices.

The reconciliation package, which Democrats hope to pass without needing GOP votes, was revealed hours after the Senate passed a bipartisan bill aimed at boosting U.S. competitiveness with China by subsidizing the domestic production of semiconductors.

Senate Minority Leader Mitch McConnell, R-Ky., had previously warned that Republicans would not back that China competition bill if Democrats continued to pursue unrelated reconciliation legislation.

Schumer and Manchin billed the package as a way to fight runaway inflation while addressing other Democratic agenda items, including cutting down on carbon emissions by 40% by 2030.

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