US President Joe Biden has signed the Inflation Reduction Act – a law that will allocate approximately $ 370 billion to climate change and energy transformation projects, and twice as much to health care. The act also introduces a minimum 15% tax for the largest corporations.
“Now I will do what I have been waiting for 18 months,” said Biden, just before signing what he described as one of the most important laws of his presidency and taking “the most aggressive action on the climate crisis in history.”
Biden signed the Inflation Reduction Act
The law provides for the issuance of $ 369 billion over 10 years – mostly in the form of tax breaks – for investments, incl. in renewable energy, thermal modernization of houses, purchase of electric cars manufactured in USA and limiting methane emissions. According to the forecasts of the White House, this is to reduce greenhouse gas emissions by 40 percent. by 2030 compared to 2005 level
The second part of the law, dealing with health services, allows the government’s senior health insurance program to negotiate the price of drugs – to lower the price – and to increase health insurance subsidies for low- and middle-income families.
The main source of funds for new expenses is to be the establishment of a minimum, 15 percent. tax on the largest corporations. Until now, many of them have paid little or nothing if they showed losses. In addition, the budget is to fund the investment in the employment of tens of thousands of new employees of the tax office (IRS). The move is supposed to increase tax collection – especially among those earning over 400,000. hole. per year, although it is the subject of intense criticism from the Republican side. The White House predicts that the bill is expected to decrease within a decade budget deficit by $ 300 billion At the same time, according to the analysis of the effects of legislation, contrary to its name “the law on reduction inflation“will not have a significant impact on inflation.
“These advances are part of our vision and plan”
The act signed by Biden – achieved after a year and a half of tumultuous negotiations within the Democratic Party – is the fulfillment of some of the president’s election promises, although the initial version of the act has disappeared from, among others, introducing free kindergartens and state-guaranteed paid parental leave. It is also another of Biden’s “generational” investments after Biden signed a $ 1.2 trillion investment. infrastructure spending package and $ 280 billion for investment in research and semiconductor production.
“All of these advances are part of our vision and plan … to ensure that democracy works for your generation,” Biden said.
Main photo source: PAP / EPA / JIM LO SCALZO