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After more than a year of debating costs, taxes, tax credits, and regulations, President Joe Biden finally signed its sweeping tax, health and climate bill into law – albeit a dramatically reduced version of $1.75 trillion Rebuild a better plan he pushed for last year.
Considered a major victory for Democrats, the newly renamed Inflation Reduction Act includes a $369 billion investment in climate and energy policies, $64 billion to expand policy under The Affordable Care Act aims to reduce health insurance costs and the 15% corporate minimum tax is aimed at companies making more than $1 billion a year.
The $437 billion spending package is expected to boost revenue by $737 billion over the next decade, most of which will come from lower drug prices for people receiving Medicare and increased taxes on corporations. About $124 billion is expected to come from increased IRS enforcement, which means harder and more frequent audits for the wealthy. It is expected to reduce the deficit by more than $300 billion over a decade.
To complete a deal, Biden had to give up some of his favorite works in his original Build back better bills, including universal childcare and tax cuts for the middle class. Democratic Conservative Senator Joe Manchin of West Virginia was also a late Democrat until he and Senate Majority Leader Chuck Schumer, DN.Y., reached an agreement to move the bill forward earlier this month.
Freshman Sen. Kyrsten Sinema, D-Ariz., supported last-minute passage in the equally divided Senate of a provision that would have closed the so-called interest rate loophole that allowed stock managers Private equity and hedge fund executives pay significantly lower tax rates than most taxpayers.
The bill was passed by the US Senate 51-50 on August 7 without a Republican vote. Vice President Kamala Harris cast her breakout vote, giving the Democrats victory.
The US House of Representatives passed the bill on Friday by a Range 220-207.
