Biden signs Inflation Reduction Act into law, sealing major Democratic victory on climate, health care and taxes

Date:

Washington — President Biden signed the Inflation Reduction Act Bill passed into law Tuesday at the White House, finalizing a landmark piece of legislation in the last few weeks before the midterm elections aimed at combating climate change, lowering health care costs and increasing the cost of health care. taxes on companies.

The House and Senate passed the bill along party lines last week after Democratic Senator Joe Manchin and Senate Majority Leader Chuck Schumer struck a deal after many months of negotiations. Both senators attended Tuesday’s signing ceremony.

“Let me say from the outset that with this bill, the American people have won and special interests have lost,” Biden told the crowd gathered at the White House. The president had to silence cabinet members, members of Congress and staff in the audience at the venue as they continued to cheer and clap after he took the lectern.

Passing the bill was many months in the making and at times seemed unlikely with a 50-50 Senate and midterm elections fast approaching. It is realizing long-held democratic goals to lower the cost of prescription drugs, invest in clean energy transitions, and reform the country’s tax laws.

“It was one of the few truly historic days in the 30 years I’ve spent in Congress,” House Democratic whip Jim Clyburn said alongside Mr. Biden, praising the president’s legislative achievements.

President Biden Signs Inflation Reduction Bill of 2022
President Biden signs the Inflation Reduction Act of 2022 in the State Dining Room of the White House in Washington, DC, US, on Tuesday, August 16, 2022.

Sarah Silbiger/Bloomberg via Getty Images


Senate Majority Leader Chuck Schumer said the bill came amid “one of the most prolific periods in Senate history” when Democrats passed gun check, comprehensive care for veterans exposed to fire pits and provided billions of dollars in subsidies to boost U.S. semiconductor manufacturing. Schumer also praised the president for sending the Inflation Reduction Act across the finish line.

“I’m confident this bill will be one of the greatest legislative achievements in decades,” Schumer said, adding that it was “the most important bill we’ve passed in a long time.”

Manchin, who sat in the front row of the room for the signing, received thunderous applause as Schumer thanked him for his role in the bill’s approval. The West Virginia Democrat had rejected previous versions of the president’s Build Back Better agenda, but embraced the Inflation Reduction Act, which was much more restrictive. The president handed Manchin his pen after signing the bill.

The announcement of a deal between Manchin and Schumer last month came as a surprise to many Democrats. Manchin explained to reporters on Tuesday why he did not share the workings of the deal earlier.

“I didn’t want anyone to be disappointed again because I didn’t think we would get there,” he said.

The new law provides $369 billion to fund energy and climate projects aimed at reducing CO2 emissions by 40% by 2030, the most significant investment ever in the fight against climate change. It will also limit out-of-pocket drug costs for seniors on Medicare to $2,000 per year, and allow Medicare to negotiate prescription prices with drug manufacturers.

The legislation sets a corporate tax rate of at least 15% for most large companies and provides $80 billion in funding to the IRS, allowing the agency to hire thousands of agents and revamp decades-old technology systems.

The president signed the bill after returning from vacation in South Carolina. First Lady Jill Biden tested positive for COVID-19 on Tuesday and will remain in South Carolina, but the president tested negative and returned to Washington. He is considered a close contact of the first lady.

In the coming weeks, the White House says the president will travel around the country to explain how the bill will help Americans. He will also host an event to mark the bill’s entry into force on September 6.

Despite the name, the extent to which the bill will help lower inflation remains to be seen. A model from Penn Wharton says the bill won’t measurably affect inflation, and the Congressional Budget Office called the impact on inflation this year “negligible” before helping lower inflation in later years. Still, the White House points to a letter signed by more than 120 economists promoting the bill and insisting it will “put downward pressure on inflation by cutting the government’s budget deficit by an estimated $300 billion over the next decade.” “.

A reporter on Tuesday pointed out to Manchin that the CBO doesn’t think the law will do much to curb inflation.

“They weren’t always right, I can tell you that,” he replied.

Republicans have pointed to models that suggest the law could cut incomes somewhat.

“With the stroke of a pen, Joe Biden will guarantee the careers of Democrats in Congress come to an end,” Republican National Committee chairman Ronna McDaniel said in a statement. “Biden and Democrats raised taxes on hard-working Americans and gave the IRS $80 billion to hire 87,000 new IRS agents. Americans will never forget that Biden and the Democrats raised taxes during a recession.”

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related