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Sen. Manchin backs surprise climate and health care bill deal

Yahoo Finance Live anchors discuss Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) reaching a deal for clean energy and health care.

Video Transcript

- One more thing that we have talked about this morning, that's the surprise agreement in Washington. Senate Majority Leader Chuck Schumer and Senator Joe Manchin announced a surprise $369 billion deal yesterday on a really spread-- spreading energy and health care bill that will include billions of dollars for electric vehicles, for solar panels, for other clean energy priorities.

Democrats plan to include that deal in a budget reconciliation package on the floor next week. And what seems to have gotten this over the hurdle for Manchin, who had been very resistant to this bill in the past, it seemed like it was dead. The president had sort of tried to manage expectations.

It sounds like that there are, in addition to a lot of clean energy incentives, there are also still some incentives for coal and natural gas, for traditional petroleum. So that seems to have reassured Manchin and been one of the things that got him to agree to this.

- I'm setting myself up here to be pummeled, I think, and that's OK. Now this is all good. It's going to benefit a lot of industries. But really quick write up by the folks over at "The Hill" like breaking down where these gains will happen but also this will likely mean higher taxes.

"The Hill" is reporting here the tax chapter of the bill would tighten requirements for an estimated 200 large corporations that use loopholes in the tax code to pay an effective tax rate below 15%. So taxes might be going up on big business. Whether they adjust their hiring plans, who knows. But that is just the reality as a result of this.

- The other reality of this is the timing. Before a midterm election, Joe Manchin doesn't want to seem like he's just a continued blockade with anything that tries to get through in Washington DC. And he and his own right as well had said that he could have easily just continued in the same posturing and the same type of presence that he has been really being the logjam, the essential logjam between himself and Sinema for the Democratic party.

And for largely for Congress being able to get through meaningful legislation. And so he even acknowledged that all right, finally, it's time for him to do something. It's time for him to step up to the plate even if he didn't fully agree with every single thing in the bill at this point.

- I mean what's interesting to me is that the Democrats can claim this as a week-- that it's a week of wins for them. And a week of wins where they're really focusing on the long-term future of the country with the chips bill and with a lot of the climate measures within this bill. I'll leave the taxes aside for a moment. But you're looking at a bill here that for lower income consumers gives them a $7,500 incentive to buy electric vehicles, new electric vehicles, $4,000 for used electric vehicles.

And then you're talking about $30 billion in incentives for renewable energy solar panels, wind turbines, batteries, mining in the US. $60 billion to fight pollution in low income communities. I mean, you're seeing here the different amounts.

This is something that climate activists have pushed for a long time and they're saying that even as it has the fossil fuel stuff still attached, that this is still a step in a positive direction. And you could argue it's overdue, also, considering how long this has been talked about.

- You mentioned solar stocks. They're rocking here in the pre-market. I pulled up for solar coming into the office this morning on our platform. That's rocking. That is doing very, very well. But again, you know what's the tax impact of this? But to your point, this has been a week of wins, I would say, for the administration. I'm curious what Rick Newman is going to write in his Bidenomics column end of this week. But a lot of good things happen this week.