Former Senator Byron Dorgan (D-N.D.) joins Yahoo Finance Live to discuss various tax laws, health care policies, and immigration reforms the new Congress will be expected to debate in 2023.

Video Transcript

SEANA SMITH: Well, a number of new laws are set to go into effect on January 1, as big pieces from President Biden's agenda are implemented. That includes changes to the tax code for corporations, drug pricing, and the biggest attempt ever to turn the tide on climate change.

Joining us now is former senator Byron Dorgan, also senior fellow at the Bipartisan Policy Center. Senator, it's great to have you here on Yahoo Finance. So certainly a number of changes on the horizon. Let's start with the new tax credits for clean energy. It's certainly a priority for the Biden administration. I guess, how will it work, and do you expect Americans to take full advantage of them?

BYRON DORGAN: Well, they have a lot of tax credits that were passed with the legislation, the Inflation Reduction Act. And those credits dealing with electric vehicles, energy, healthcare, they're very significant. For example, some of them started immediately, the $7,500 tax credit for electric vehicles, some credits for battery technology and capability.

And I also say with respect to the homes, tax credits will begin immediately if you're going to buy solar panels, if you're going to put new windows in your home, if you're going to purchase heat pumps. There's a whole series of things. If you're going to put a charging station for an electric vehicle in your garage, those are the kinds of tax credits that will start almost immediately.

JARED BLIKRE: And senator, we had-- 2022 was a year marked by a number of big Supreme Court decisions. Just wondering what might be coming down the pike in 2023.

BYRON DORGAN: Oh, I wish I knew. I mean, this court is so far off to the right. And the issue, I think abortion will remain a very significant issue. But there are other big issues coming from this Supreme Court. And we'll have to wait and see. There are also significant healthcare changes. Finally, at long, long last, the Congress and the Inflation Reduction Act took aim at the issue of the price of insulin. But this only applies to Medicare recipients, but they've said the price of insulin, you won't have to pay more than $35 a month.

But that's only for Medicare recipients. All the rest of the folks will still be paying a great deal of money for insulin, and they should not be paying that kind of money. So there's a lot of things that in healthcare also that are going to be changed. And there will be caps with respect to the costs for prescription drugs for citizens on Medicare. But we need to take a better approach on the issue of drug costs generally. Prescription drug-- brand name prescription drugs cost far too much in this country.

SEANA SMITH: And drug pricing certainly an issue that has support from both sides of the aisle. Senator, what about the corporate tax changes? A new 15 minute-- 15% minimum corporate tax here. What do you think of this new rate, and I guess, the impact that you see it having on US competitiveness and also just on companies here in the US?

BYRON DORGAN: Frankly, I don't think it's going to be a problem for competitiveness. I think the tax cut that was passed about two to three years ago that reduced it to 21%, I think that was too significant. But so I don't think it's going to reduce our competitiveness. But the 15%, take a while, that's with respect to those companies, only those companies that have $1 billion in income and that deals with the book value.

So there's also, by the way, a new excise tax that begins immediately on stock buybacks, a 1% excise tax on companies that start buying back their own stock. So there are a couple of things like that that I think corporations will say that there's a significant problem with them. I don't think there's a significant problem honestly. And I think there does need to be some sort of corporate minimum tax because we've seen a lot of companies make a great deal of money and pay zero in taxes.

JARED BLIKRE: Well, we've also seen a lot of pain this year not only for individuals, but also corporations. Just wondering if there's any kind of relief on the horizon for next year. Maybe something-- some inkling of something that might be coming down the pike.

BYRON DORGAN: You mean tax policy [INAUDIBLE]

JARED BLIKRE: It could be tax policy, anything stimulative in nature, whether that could be tax policy or direct investment.

BYRON DORGAN: Well, I think the issue of inflation is very significant. And I think the Fed, obviously, their desire is stable prices and full employment. I mean, those are the two goals of the Federal Reserve Board. They're going to be doing all they can. They don't have a lot of tools, honestly, other than interest rates. And they're going to do all they can to deal with inflation. But look, both political parties have to start dealing with immigration. You just have to start dealing with immigration somehow. And I hope they do it in a way that allows the two parties or pushes the two parties to work together.

Even when they vastly disagree on what the result might be, everyone understands what the problem is. And compromise is the lubrication here. The lubrication of democracy when people feel very differently about something, even though they all feel that there's a significant problem, you need to compromise. And I think it's important for Republicans and Democrats to start caring a whole lot more about the country than their political parties. And there needs to be this lubrication called compromise in order to make democracy work.

SEANA SMITH: And senator, speaking from your several years that you spent on Capitol Hill, I think many Americans would like to see compromise from both sides of the aisle. Some of the issues, though, that you think Democrats and Republicans might be able to agree upon, any one or two things that you think we could see advance through both the Senate and the House?

BYRON DORGAN: Well, I think both political parties understand the urgency of dealing with inflation and want to find a way to deal with inflation. So my hope is that you'll have some support for that. Obviously, the war in Ukraine remains a significant issue. I think most Republicans and most Democrats feel very strongly that we need to continue to be involved in helping the Ukraine. So those will be some of the areas.

But spending as well, we have a $31 trillion debt. And both political parties need to understand that's a pretty serious problem. And we need to begin dealing with the spending issues in a significant way.

JARED BLIKRE: Senator, we've got time for one more, so I'll just give you the floor here. Anything we didn't cover that you'd like to discuss or make a point about?

BYRON DORGAN: Well, the issues that exist, for example, with China, just to use an example, you move along and something happens, and it's a new issue. The issue of baby formula shortage, right? I mean, who would have thought? And so these things happen. But the issue of China, I think especially, is going to remain a very significant issue for the United States. We watch Xi Jinping, who now apparently is the leader for life in China. We've got lots of issues with him.

And I hope we can find a way to work-- continue to begin working with China in a thoughtful way. And so we'll have to wait and see. But I think it will have a profound impact on our country and China. And we also have to, at the same time, be very, very concerned about what Mr. Putin is trying to do in Russia. And as a result, we need to continue to provide support with Western Europe and others for Ukraine.

SEANA SMITH: Yeah, certainly a massive issue. And senator, before we do let you go, the Supreme Court is also going to be focused on President Biden's revival here of what he's looking to do for student loan forgiveness plan. I'm curious just to get your thoughts on his plan and what you think should be done when it comes to student loan forgiveness.

BYRON DORGAN: Well, I wasn't a big fan of the plan the president announced. I'm a Democrat, but I-- you know, look, I think the best way to deal with student loans is to reduce interest rates, number one, and number two, to put some pressure and some backbone in colleges to say, you can't keep doing what you're doing with respect to these costs. You're ratcheting up costs in dramatic ways that are terribly unfair. So I think that's what we should have done. I'm not a big fan of wholesale abandonment of the obligations that exist with student loans. But I would like to see interest rate reductions that are very substantial for them.

JARED BLIKRE: It looks like 2023 going to be a year critical for interest rate policy. Thank you for that, former senator Byron Dorgan.