Sen. Joe Manchin (L) with Sen. Chuck Schumer (R) | Photo Credit: Patrick Semansky/AP
The Senate adopts the bill appropriating over 750 billion dollars for tax, tax reform, and climate legislation on Sunday afternoon. The accomplishment is yet another win for President Joe Biden and his allies.
US Vice President Kamala Harris cast the deciding vote in the Senate’s close 51-50 vote on the bill. The bill didn’t get to the panel’s third reading until after several months of discussion and deliberation. It would provide the Democrats with the opportunity to develop goals and modifications to existing policies that might aid them in their campaign for the midterm elections.
This Friday, August 12, the bill will be discussed in the Lower House, which the Democrats control substantially. Before the bill can be forwarded to Biden for signing, the Democratic-controlled House must support it.
Bill can boost healthcare
The Inflation Reduction Act bill, had it been enacted into law, would have represented the largest climate investment in US history. It could potentially affect the course of US healthcare policy by allowing Medicare to enforce price changes on prescription pharmaceuticals. In addition, the law gives authorities the option to extend healthcare subsidies for an additional three years.
A minimum hike in the corporate tax rate to 15% and an additional rate of 1% on tax buybacks would result in a rise in tax income for the state. Tax evaders would face the consequences if they violated the new rules set forth by the bill, and the measure would also grant the Internal Revenue Department more flexibility in the collection of taxes.
Within just a decade, the bill would have generated more than $700 billion in tax revenue, which will be used to reduce carbon emissions and extend healthcare subsidies. According to the bill’s provisions, the aforementioned items will receive approximately $430 billion in funding.
Senator Joe Manchin of West Virginia, one of the bill’s primary sponsors, stated that the bill he wrote and endorsed was balanced enough to aid both the public and the county.
“I think we’ll all benefit from it; the country will. We have energy security; that’s what we were looking for. And we have the ability to invest in the energy of the future,” Manchin said.
As for the voting’s outcome, Biden said he was pleased. He expressed gratitude to his party’s members for giving life to a law that he and other Democrats had previously tried to pass.
“Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit while making the wealthiest corporations finally pay their fair share,” the president said.
Climate Crisis mitigation
Regarding the bill’s potential to combat the country’s climatological problem, economists hold a variety of perspectives. The bill’s provisions would have a significant influence on the decrease of carbon emissions, nonetheless, if carried out as required.
The bill includes a more than $370 billion climate and clean energy subsidy. Since the passage of the US Clean Air Act, this amount represents the largest investment in tackling climate change in US legislative record. The bill was passed, say experts, during a time when heat waves were destroying the nation. The climate subsidy should assist in lessening the effects of climate-related problems in the US now that the bill only needs to pass the House, which is packed with Democrats.
The fundamental aim of the legislation, according to Senate Majority Leader Chuck Schumer, who co-sponsored it with Sen. Manchin, is to reduce carbon emissions by 40% by 2030.
Fifty percent by 2030 was a goal that Biden had originally proposed. But in order to achieve the president’s goal, laws on large firms and other variables that significantly contribute to global warming must be strengthened.
Democratic Sen. Brian Schatz of Hawaii said,” This isn’t about the laws of politics, this is about the laws of physics. We all knew coming into this effort that we had to do what the science tells us what we need to do.”
Opinions expressed by Texas Today contributors are their own.