Build Back Better

With its new Inflation Reduction Act (IRA), the government is pulling one of those infomercial tricks where they throw in a third bottle of OxiClean ABSOLUTELY FREE! Acting as if the cost of everything hasn’t already been calculated and passed onto the consumer. The IRA, you see, contains a “Methane Emissions Charge” that will impose a $900-a-ton tax on oil and gas producers that will increase to $1,500 after two years. The left is patting itself on the back for their valiant work to cut greenhouse gas emissions drastically by 2030. But here’s the thing: the energy industry is already working hard to cut emissions; it’s in their interest to do so. And when the government fines them for not capturing enough methane, guess who gets to foot the bill?

Like characters in a dystopian novel, the elderly bore the worst of it. Dianne Feinstein, whose friends were already whispering about how there she really was, was found walking back and forth between her private room and common area, which she was required to come to over and over again just to get through the 16-hour ordeal. Chuck Grassley, only a year younger, confessed to taking 10-minute naps and struggling to stay awake, while lamenting how he missed his family. Patrick Leahy, 84 and coming off hip surgery, was lucky. He received more comments about the Batman sticker on his wheelchair than he did questions about why he was even there in the first place. “Pat, I’m glad you’re here,” the comparatively juvenile Tim Kaine (64)  remarked. “We shouldn't have to suffer alone.

I, for one, never thought he would do it. I never thought Joe Manchin, who was elected in West Virginia after running an ad in which he literally shot the 2009 cap-and-trade bill, would sign on to Joe Biden's Build Back Better climate agenda. Yet sign on he has. Last night, Manchin announced that after over a year of logjamming Biden's spending plans, he'd struck a deal. The legislation he agreed to weighs in at a ballpark of $700 billion, a sharp climbdown from the $6 trillion Democrats had initially asked for. But it's still a lot of money, and even more importantly, it's a major psychological boost for the left. Now, barring some let-the-world-burn chaos from goth kid Kyrsten Sinema or revolt from House Dems, Build Back Better will be signed into law.

Five Guys has always been Cockburn’s first choice for a greasy cheeseburger — breakfast of champions, says he — but Good Stuff Eatery, a Capitol Hill joint, is a solid second. So it is that Cockburn finds himself with a new respect for Congressman Ro Khanna, Democrat of California, who was recently interviewed by Politico while eating at Good Stuff. Yet for sheer artery-clogging goodness, you can’t beat the story Khanna told about President Joe Biden. Per Politico, Khanna said he was once chatting with the president about the difficulties facing the Democratic senatorial caucus (as one does). “Mr. President,” he said, “why don’t you just get Bernie Sanders and Joe Manchin in the room and hammer this out?

By the middle of January, I’d read some version of the headline “Biden Can Still Rescue His Presidency” so many times that it seemed an algorithm had taken over from the editors. The New York Times placed it above a column by Bret Stephens, a prominent anti-Trump conservative and a member of the pundit pack that earnestly wished the president Godspeed when he entered the White House more than a year ago. Stephens, like most of his colleagues, argued that Biden was “flailing — and failing” — because of what the paper’s news pages have described as a “legislative agenda in shambles.

The Covid-19 pandemic has affected every part of society, and the country’s economic wellbeing has been no exception. The time since March 2020 has provided a sort of natural experiment as to how various untested policy ideas play out in real life. Initially, most politicians on both sides of the ideological spectrum agreed on the need for a robust federal response to the virus. These actions took many forms: universal relief checks, enhanced unemployment benefits, and historic funding of vaccine research and distribution — just to name a few. For well over a year, the federal government was a source of seemingly unlimited spending. Although many of those policies have since fallen by the wayside or are at least becoming less relevant, some remain part of a fierce public discussion.

The first workday of 2022 and already Washington, DC has been paralyzed by snow. That isn't saying much, given that half an inch is enough to shut things down around these parts. As a kid growing up in Connecticut, I remember countless snowy mornings when I'd wake up early, pad downstairs, turn on the listings, only to be devastated to learn that school was only delayed by half an hour. Cut to DC, where they'll close the schools because it's cold outside. So it goes in our thin-blooded nation's capital. And in fairness, the fact that many federal employees are still working from home has mitigated the paralysis somewhat. Still, a city needs to move in order to work, and it's there that the literal gets at something figurative.

Joe Manchin was never going to vote for Build Back Better. Now that he's declared himself a "no" and all but killed President Biden's titanic spending package, it's time for Democrats to admit as much. To be sure, Manchin has played well the role of centrist negotiator. He's furrowed his brow and raised pragmatic concerns over renewable energy and inflation. He's huddled with his fellow Joe at the White House and won plenty of concessions. He's provided chum for bored (and boring) political analysts, as analyzing him and his fellow holdout Kyrsten Sinema became a kind of Kremlinology for the Twitter-addicted. But such breathless parsing forgets one simple fact: all politics is local.

Language about insulin is supposed to be one of the bigger selling points of the Build Back Better Act. Democrats say prices would be capped at $35, which is true from a certain point of view. Insulin co-pay prices get capped at $35 — starting in 2023 — for Medicare Part D and Medicare Advantage plans. Individual and private insurers face different rules, however, only having to charge $35 for either a vial or a pen. They can also pick one kind of insulin to cover. Insulin price controls are a hot topic right now for good reason. Over the last twenty-three years, Humalog brand insulin has gone from $21 a vial to $275. The generic version of insulin called Semglee costs almost the same.

Much has been written about the expansiveness of the Biden administration’s signature priority: the Build Back Better Act (BBB). The legislation is projected by the Congressional Budget Office (CBO) to spend more than $1.6 trillion in its attempts to address countless Democratic priorities ranging from climate change to the expansion of Medicaid. One aspect of the bill, however, has attracted far less fanfare than it should have: its impact on the cost of prescription drugs. Provisions in the bill would, among other things, impose rebates on drug manufacturers if prices rise faster than inflation. It’s an idea that sounds great in the current moment of creeping inflation, but is ultimately little more than a market distortion likely to produce an array of adverse consequences.

The fate of the Build Back Better plan is now in the hands of the Senate. The House approved the gargantuan $1.85 trillion bill on Friday despite efforts from Republicans to delay the vote. House Minority Leader Kevin McCarthy played the role of Rand Paul or Ted Cruz, railing against the legislation in an over eight-hour-long speech. The Associated Press suggests that McCarthy viewed his talk-a-thon as an opportunity to show his conservative bona fides should Republicans take control of the House in 2022 and he decide to push for the speakership. “This is a tipping point,” McCarthy said on Friday morning as he wrapped up the speech. “This is a point of not coming back. The American people have spoken, but unfortunately, the Democrats have not listened.” Which Americans?

In October, Meghan Markle, the Duchess of Sussex, made her most significant political intervention to date. She marked her fortieth birthday by writing an open letter “as a mom” to Nancy Pelosi and Chuck Schumer, and asked Congress to legislate for paid family leave for new parents. Markle may have thought she was pushing at an open door: the Democrats were striving to include paid family leave in the Build Back Better Act. But this may not be the only open door Meghan is pushing at. Seasoned observers will notice the Markle trademarks in the letter. There is the folksy appeal to her humble heritage: “I grew up on the $4.99 salad bar at Sizzler... I knew how hard my parents worked to afford this because even at five bucks, eating out was something special, and I felt lucky.

The worst kept secret in Washington, DC is that Joe Biden is a one-term president — whether he knows it or not. This weekend, palace intrigue stories from Politico and CNN pitted Vice President Kamala Harris against Transportation Secretary Pete Buttigieg. The kids are fighting over Grandpa Joe’s inheritance before he’s even cold. Biden doesn’t acknowledge this. He’s signaled multiple times that he intends to run for a second term in 2024. He has been trying to capture the White House for over thirty years. He’s not just going to give that up willingly as he managed to go from party punchline to party patriarch in the span of one election. But to believe the choice is up to him is to believe that his staggering fall in poll numbers is imaginary.

President Joe Biden during his 2020 campaign vowed not to raise taxes on anyone earning less than $400,000 a year. That promise recently hit an iceberg in the form of a new excise tax on nicotine. Kentucky Congressman John Yarmuth inserted the tax into the tome-like Build Back Better Plan bill last week. Yarmuth’s amendment appears to focus on e-cigarettes, vape juice, and other non-tobacco items by classifying them as extracted nicotine products with a max levy of over $50. That’s like the current tobacco tax. It’s unknown how much revenue Yarmuth hopes to raise, though the original Build Back Better Plan included $96 billion in tobacco and e-cigs taxes. Any nicotine tax will hit the lower and middle classes harder than anyone else.

For months, Democratic negotiations over Joe Biden’s twin spending bills were stuck in a cycle of infighting that felt it would never end: the unstoppable force of progressive overexcitement up against the immovable object of moderate resistance. That deadlock was finally broken late on Friday night, when the House passed an infrastructure bill worth $550 billion in new spending. The breakthrough came after a head-spinning day on the Hill (a day that progressive congressman Mark Pocan described as a “clusterfuck”).