Senators Kelly, Sinema Agree To Biden’s Controversial Inflation Reduction Act

Senators Kelly, Sinema Agree To Biden’s Controversial Inflation Reduction Act

By Corinne Murdock |

Over the weekend, Arizona’s two Democratic senators, Mark Kelly and Kyrsten Sinema, fell in line with their party and backed the Inflation Reduction Act (IRA). The IRA passed the Senate on Sunday along party lines, 51-50, with Vice President Kamala Harris casting the tie-breaking vote. 

The IRA, a repackaged version of President Joe Biden’s Build Back Better (BBB) Act, projected well over $700 billion in revenue. However, some analysts have warned that the IRA will have the opposite desired effect on job creation, inflation and deficit reduction, incomes, tax rates, and drug prices.

The two senators opposed amendments to the IRA that would fund $500 million to finish the border wall, approve coal leases, increase domestic oil production in order to lower gas prices, protect those making under $400,000 from additional tax audits, limit price controls for treatments for conditions like cancer and Alzheimer’s disease, require oil and gas lease sales in the outer Continental Shelf, provide discounted insulin for low and middle-income Americans, remove $45 million in climate-related expenditures, retain Title 42, strike a tax increase resulting in higher energy prices for those earning under $400,000, hire more Border Patrol agents, reduce drug prices, invest in violent crime prevention, and prohibit tax credits for electric vehicles built with slave labor. 

The IRA will also expand the Internal Revenue Service (IRS) by up to 87,000 more employees through an $80 billion investment. That will make the IRS bigger than the Pentagon, State Department, FBI, and Border Patrol combined, as noted by Washington Free Beacon. IRS data reveals that over half of all IRS audits in 2021 focused on taxpayers making less than $75,000 a year. 

All Democrats, including Kelly and Sinema, rejected an amendment to remove provisions expanding the IRS.

Arizonans gathered on Saturday in Phoenix to protest Sinema and Kelly’s support of the bill. FreedomWorks Grassroots Director and Co-founder of EZAZ.org Merissa Hamilton, who helped organize the protest, criticized Sinema and Kelly for supporting the IRS increase, which she called an “inquisition” comparable to the treatment of ideological opponents under the Obama administration.

“Clearly, your IRS inquisitions are to target us like you did the Obama-Biden administration, and we have had enough,” said Hamilton. “We’re already in the middle of a recession — I know it’s tough for you to say the “r” word, but it’s time for you to take responsibility, represent Arizona, and stop betraying us.”

An amendment to prevent oil sales to China was ruled out of order by Senate chair after Kelly and Sinema joined the majority of Democrats to waive it. 

Sinema insisted that the IRA would “help Arizonans build better lives” through lowered prices on goods and services, accessible health care, and water and energy security. Sinema promised that the IRA would cause Arizona’s economy to improve.

As AZ Free News reported last week, Sinema’s original holdout on the IRA concerned its carried tax provision. Democratic leadership agreed to drop that provision in order to earn her vote. 

Kelly elaborated further on the rationale for the Arizona senators’ votes. He said that the IRA will lower prescription drug costs, implement funding to effectively combat drought and “climate change,” and reduce the deficit. Kelly promised that the IRA wouldn’t result in increased taxes for small businesses and middle-class Arizonans. 

“When I meet with Arizonans and small businesses across our state, the top concern I hear about is rising costs,” said Kelly. “This is going to lower costs for health care, prescription drugs, and energy while creating great-paying jobs in Arizona.”

Notable opposition to the IRA came from Senator Bernie Sanders (I-VT). The senator criticized the IRA for not doing enough to help the working class, and proposed amendments to modify the bill that were roundly rejected, 99-1. However, Sanders ultimately fell in line with the Democratic Party and voted for the bill.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Hollywood Movie Star Threatens to Primary Senator Sinema Over Corporate Tax Bill

Hollywood Movie Star Threatens to Primary Senator Sinema Over Corporate Tax Bill

By Corinne Murdock |

George Takei, of “Star Trek” fame, threatened to remove Senator Kyrsten Sinema (D-AZ) from office if she opposes President Joe Biden’s bill raising corporate taxes. 

The legislation in question, the 725-page Inflation Reduction Act (IRA) of 2022, would impose a 15 percent minimum tax on corporations with income of $1 billion or more and closure of a carried interest provision in the tax code. The legislation is a repackaged version of Biden’s Build Back Better (BBB) Act. It gained momentum after earning Senator Joe Manchin’s (D-WV) support last week, who held out previously over concerns that it would exacerbate inflation.

Takei is a New Yorker and prominent LGBTQ+ activist; Sinema’s the Senate’s first bisexual member. 

Sinema’s opposition stands in the way of Democrats’ budget reconciliation — the only way Biden can have his bill passed without Republican support. 

Costing around $433 billion, the IRA would invest $369 billion into renewable energy and climate change programs, enforce price controls on prescription medication, allow Medicare to negotiate drug prices and caps out-of-pocket cost to $2,000, expand the IRS budget by $124 billion, and extend the Affordable Care Act (ACA) while lowering premiums. 

Democratic leadership claimed that the IRA would raise $739 billion in revenues, effectively reducing the deficit by over $300 billion and countering the historic high inflation (9.1 percent) plaguing the nation currently. In the Democrats’ one-page summary of the IRA, they claimed that the IRA wouldn’t result in any new taxes on families making $400,000 or less, and no new taxes on small businesses.

The Tax Foundation estimated that the IRA would eliminate about 30,000 jobs and reduce economic output and after-tax wages in the long run. They identified the 15 percent minimum tax on corporations as the main cause for projected job reduction.

On Tuesday, Sinema spoke with Arizona Chamber of Commerce President and CEO Danny Seiden about the legislation. 

Seiden and the Arizona Chamber of Commerce oppose the bill. They insist that the IRA would raise taxes and disincentivize businesses’ growth. 

On Wednesday, Axios reported that sources close to Sinema revealed that the senator may support the IRA if it’s expanded to include provisions improving drought and water security in the Southwest. Politico sources close to Sinema put a price tag to that request: $5 billion. 

Arizona has been in a long-term drought for nearly 30 years, a status worsened by the recent reclassification of the Colorado River to Tier One drought status. That reduced Arizona’s water allotment, and prompted Governor Doug Ducey to seek out Israeli desalination technology to counter the drought.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.