Biden Signs Inflation Reduction Act into law, President Joe Biden has signed his complete tax, health, and climate measure into law after more than a year of debate over expenses, taxes, tax credits, and regulations although a radically scaled-back version of the $1.75 trillion Build Back Better plan he was supporting for last year.
The president was joined by Sen. Joe Manchin of West Virginia, Reps. Jim Clyburn of South Carolina, and Kathy Castor of Florida as he signed the newly titled Rise Reduction Act into law.
Before he signed the legislation, Vice President Biden declared, “Biden Signs Inflation Reduction Act into law, the American people won and the special interests lost”.
The new law includes a $369 billion investment in energy and climate change programs, a $64 billion extension of the Affordable Care Act’s provision to lower the cost of health insurance, and a 15% corporate minimum tax targeted at businesses with annual revenues over $1 billion.
Over the following ten years, the $437 billion spending package is anticipated to generate $737 billion in income, with tax increases on corporations and lower prescription costs for Medicare beneficiaries accounting for the majority of that total. An estimated $124 billion is expected to be generated by greater IRS enforcement, which involves stricter and more frequent audits of rich taxpayers. Over a ten-year period, it is expected to reduce the deficit by more than $300 billion.
Biden Signs Inflation Reduction Act into law, in order to reach an agreement, Biden had to give up several of his preferred provisions in his original Build Back Better program, such as universal child care and middle-class tax cuts. Conservative Democrat Manchin was another late holdout until he and Schumer reached an agreement earlier this month to advance the package.
Sen. Kyrsten Sinema, a freshman senator from Arizona who represents an evenly divided Senate, blocked passage of the bill at the last minute over a provision that would have closed the so-called carried interest loophole, which permits executives of hedge funds and private equity firms to pay much lower tax rates than the majority of taxpayers.
Manchin, House Speaker Nancy Pelosi of California, and the White House staff “who gave it their all to finalizing this law,” Schumer said as she introduced the president.
On August 7, the U.S. Senate barely passed the measure 51–50 with no Republican support. The tie-breaking vote was cast by vice president Kamala Harris, giving Democrats the victory.
Biden Signs Inflation Reduction Act into law, the bill was approved by the US House on Friday by a vote of 220-207. In his remarks, Biden pointed out that every Republican in Congress opposed the bill.
Just to be clear. Democrats sided with the American people in this historic vote, but every single Republican in Congress sided with a special interest, he claimed. “Each and everyone”.