Climate, Medical, And Taxation Addressed In Act Passed By US Senate
On Sunday, August 8th, 2022, the U.S. Senate passed a significant bill impacting climate, inflation, and medical costs. By a vote of 50-50, the Inflation Reduction Act passed without the support of any Republicans, with Vice President Kamala Harris being the deciding vote ensuring the bill’s passage.
The bill spans over 700 pages and addresses actions to combat climate change, lowering the cost of medical drugs, extending the affordable care act, and introducing a rise in corporate taxes.
Approximately $430 billion is allocated to climate and energy programs in the bill. This includes incentives and tax breaks for electric car owners, more significant wind and solar energy investments, and reducing carbon emissions. This could help the U.S cut its emissions by half, as they have hoped to do by 2030.
The Inflation Reduction Act also prolongs the Affordable Care Act health insurance for three more years. It also opens negotiations for lower prescription drug prices, mainly for people on Medicare.
Lastly, the act introduces a 15% minimum tax on large corporations with an income of $1 billion. It also addresses the loopholes for tax and aims to get them resolved. These changes aim to cut the federal deficit by $300 billion, and representatives say it will also lower inflation, helping the economy.
However, Republicans worry that the act may not solve all these problems. They say the act could hurt the economy more than it already is and suffer from even higher inflation. The representatives argue that energy prices will rise and jobs will be lost.
Under Democratic leadership, the bill is expected to pass through the House on Friday. After that, it reaches the Presidents desk to sign into law.
“Image from Joe Bidens social media”