Sen. Joe Manchin (L) with Sen. Chuck Schumer (R) | Photo Credit: Patrick Semansky/AP
The Senate approves a bill on Sunday afternoon that sets aside nearly $750 billion for tax, tax reform, and climate legislation. President Joe Biden and his alliance have won once more with this milestone.
A close vote in the Senate culminated in US Vice President Kamala Harris casting the swing vote, 51-51. It required several months of discussion and analysis for the bill to advance to the panel’s third and final reading. The Democrats would have the power to set goals and adjustments to the policy that could benefit them in their campaign for the midterm elections.
The bill will be reviewed this Friday, August 12, in the Lower Chamber, which the Democrats basically dominate. Before being submitted to Biden for approval, the bill would need to receive support from the Democrat-controlled House.
Bill on Healthcare
The Inflation Reduction Act bill would have been the largest climate investment in US history had it been enacted into law. Moreover, given that it would authorize Medicare to implement price adjustments on prescription pharmaceuticals and that the measure enables authorities to extend healthcare incentives for an extra three years, it may potentially fundamentally alter US healthcare policy.
By raising the corporate tax rate to at least 15% and adding an additional 1% for tax buybacks, the state would receive more income tax revenue. The proposal would also give the Internal Revenue additional authority in the collection of taxes, meaning tax evaders would face the consequences if they disobeyed the new rules outlined by the bill.
In just ten years, the measure would have generated more than $700 billion in tax money, which would be used to extend health insurance subsidies and cut carbon emissions. The listed items will receive around $430 billion under the stipulations of the bill.
Senator Joe Manchin of West Virginia, one of the bill’s main backers, asserted that the measure he authored and backed was adequately calibrated to assist both the people and the county.
“I think we’ll all benefit from it; the country will. We have energy security; that’s what we were looking for. And we have the ability to invest in the energy of the future,” the official told the press.
Biden also expressed pleasure with the outcome of the voting process. He praised his colleagues for giving life to a bill that was part of an earlier attempt by him and other Democrats to pass.
“Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit while making the wealthiest corporations finally pay their fair share,” the president stated.
On the Climate crisis issue
Regarding the bill’s potential to combat the nation’s current climate catastrophe instigators, economists have differing views. However, the bill’s provisions would have a significant influence on the reduction of carbon emissions if they were carried out as required by the law.
In the law, clean energy and the environment will receive subsidies totaling more than $370 billion. Since the US Clean Air Act’s passage, this sum is the largest investment in tackling climate change in US legislative history. Experts claim that the bill was passed during a period of extreme heat brought on by heat waves, which devastated the nation. The climate subsidy should help lessen the effects of climate-related issues in the US now that the bill just needs to clear the Democratic-controlled House.
The primary objective of the legislation, according to Senate Majority Leader Chuck Schumer, one of the bill’s principal proponents along with Sen. Manchin, is a 40% decrease in carbon emissions by 2030.
Prior to that, Biden campaigned for 50 percent by 2030. However, the president’s plan could only be accomplished if laws on large corporations and other elements that significantly contribute to global warming were tightened.
“This isn’t about the laws of politics, this is about the laws of physics. We all knew coming into this effort that we had to do what the science tells us what we need to do,” Democratic Sen. Brian Schatz of Hawaii said.