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Senate Democrats and Republicans are at odds over how the 2022 Inflation Relief Act will affect the American economy as the midterm elections fast approach.

The measure — a watered-down version of Build Back Better — was introduced on Wednesday by Sen. Joe Manchin, DW.Va. And accepted by Senate Majority Leader Chuck Schumer.

According to Schumer and Manchin’s offices, the bill would raise $739 billion in revenue by closing IRS tax enforcement, the corporate minimum tax and the carried interest loophole. They said it would spend a total of $433 billion, on energy and climate change regulations and on the extension of the Affordable Care Act.

Manchin, Schumer agree to a largely pared-back version of Build Back Better

Sen.  Gary Peters, D-Mich., and Sen.  Rick Scott, R-Fla.

Sen. Gary Peters, D-Mich., and Sen. Rick Scott, R-Fla.
(Tom Williams, CQ-Roll Call, Inc / Al Drago, Bloomberg)

In a statement released Wednesday evening, the chairman of the Democratic Senatorial Campaign Committee, Sen. Gary Peters, D-Mich., suggested the measure would help “fight inflation, lower drug and health care costs and address climate change.”

“We don’t need to do more to lower costs for Michigan and American families,” Peters said. “The Inflation Reduction Act will help fight inflation, lower prescription drug and health care costs, and address climate change. The Act will reduce the deficit while allowing for key investments in domestic clean energy production and manufacturing. I’m important to our economy, innovation and consumers.” Also happy to have the electric vehicle tax credit.”

Lawmakers React After Manchin, Schumer Agree to Reconciliation Deal: ‘Build Back Broke’

Peters said the legislation would “give families more breathing room and weather the climate crisis” as well as create “good-paying jobs and economic opportunity.”

“This will both provide relief for Michiganders now and help position us for a stronger future, including for Michigan workers and auto manufacturers,” Peters added. “The future of the auto industry is electric and autonomous, and that will support jobs at home and improve domestic manufacturing.”

Democratic Senatorial Campaign Committee Chair Sen. Gary Peters, D-Mich., speaks at a hearing at the US Capitol in Washington, DC on February 1, 2022.

Democratic Senatorial Campaign Committee Chair Sen. Gary Peters, D-Mich., speaks at a hearing at the US Capitol in Washington, DC on February 1, 2022.
(Bonnie Cash/Pool/AFP via Getty Images)

In contrast, Sen. Rick Scott, R-Fla., in a statement to Fox News Digital on Thursday, accused Democrats of “reckless spending” and claimed that President Biden has “officially plunged America into recession.”

“Joe Biden has officially plunged America into a recession, and how will the Democrats in Congress respond? With massive spending and even more reckless spending,” Scott said. “It’s crazy and what’s worse is that we’ve gotten to this point with bipartisan bad decisions. Yesterday’s announcement by Joe Manchin and Chuck Schumer showed again that many Senate Republicans are unfortunately fooled by Democrats. Some are pretending to be shocked. It’s not surprising. Not at all.”

The US economy will enter a technical recession after growth fell 0.9% in the second quarter

“Democrats have never faced a tax hike they didn’t like, and Joe Manchin is a Democrat,” Scott added. “Manchin is going with Schumer, Biden, and Pelosi for huge tax hikes on Americans as we run into 9.1% inflation, over $30 trillion in debt, and into recession. This is another failure for many politicians in Washington to stand up to. Fight against reckless spending and for real accountability to American families. Democrats will The country is being destroyed, and Republicans cannot continue to approve their reckless, inflation-fueled spending.”

Scott, who serves as chairman of the National Republican Senatorial Committee, insisted that Democrats would divert attention from the economic problems facing Americans now by claiming that the country is not in recession and that the Manchin-endorsed measure would reduce inflation.

Senator Rick Scott, chair of the National Republican Senatorial Committee, speaks during a news conference at the US Capitol in Washington, DC, Tuesday, July 26, 2022.

Senator Rick Scott, chair of the National Republican Senatorial Committee, speaks during a news conference at the US Capitol in Washington, DC, Tuesday, July 26, 2022.
(Eric Lee/Bloomberg via Getty Images)

“Now, the Democrats do two things: They say the US is not in recession and their new, partisan tax-and-spend will reduce inflation. These are all lies,” Scott said. “Joe Biden’s recession has begun and more spending does not equal less inflation. It’s time for Republicans and Democrats in Washington to wake up and stop approving reckless, inflation-fueled spending that is crushing American families.”

Gross Domestic Product (GDP), a broad measure of goods and services produced across the economy, shrank 0.9% on an annualized basis in the three months from April to June, the Commerce Department said in its first data reading on Thursday. Refinitive economists had expected the report to show the economy expanded 0.5%.

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Economic output fell in the first three months of the year, with GDP falling 1.6%, the worst performance since spring 2020 when the economy was still deep in a Covid-induced recession.

A recession is technically defined as “a significant decline in economic activity that spreads throughout the economy and lasts more than a few months,” and is characterized by high unemployment, low or negative GDP growth, falling incomes and slowing retail sales, according to National. Bureau of Economic Research (NBER), which tracks recessions.

Fox News’ Tyler Olson and Fox Business’ Megan Henney contributed to this story.