The Senate has passed the Inflation Reduction Act of 2022 in an effort to help address inflation, lower the cost of health care, combat the climate crisis and ensure that the biggest corporations and the wealthiest few pay their fair share of taxes.
The vote on the $750 billion legislation was tied at 50-50 along party lines when Senate chair and Vice President Kamala Harris broke it by using her privilege in favor of the Bill.
The Bill’s passage is seen as a political booster for the Democrats ahead of the upcoming midterm elections.
The Bill, which is a key policy of the Biden administration, is expected to pass through the Democrat-controlled House, where the voting is expected to be held on Friday.
The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.
Nearly half of the Bill earmarks $369 billion for climate action – the largest investment in U.S. history.
The bill will also finally allow Medicare to negotiate for prescription drug prices and extend the Affordable Care Act subsidies for three years, through 2025.
This bill caps seniors’ out-of-pocket spending for prescription drugs at $2,000 per year. In addition, 13 million Americans, covered under the Affordable Care Act, will see their health insurance premiums reduced by $800.
Under the Act, a 15 percent corporate minimum tax will be implemented, and IRS enforcement will be strengthened.
Additionally, the Bill calls for comprehensive Permitting reform legislation to be passed before the end of the fiscal year. Permitting reform is essential to unlocking domestic energy and transmission projects, which will lower costs for consumers and help the Biden administration meet its long-term emissions goals.
It also honors President Joe Biden’s promise not to impose new taxes on families making less than $400,000 and no new taxes on small businesses.
This bill tackles inflation by lowering the deficit and lowering costs for regular families, Biden said in a statement.
He thanked Senate Majority Leader Chuck Schumer, D-N.Y. and other members of the Senate Democratic caucus for supporting the Bill.
Not surprisingly, Republicans were highly critical of the bill, with Republican National Committee Chairwoman Ronna McDaniel claiming, “Democrats will pay the price in November for raising taxes on families during a recession.”
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