The US Senate finally passed the US President on the 7th after a marathon night of votingBidenThe major economic bill, which would raise taxes on large, profitable companies and spend hundreds of billions of dollars on various programs to reduce carbon emissions, also marks Biden andDemocratsA major legislative victory ahead of the crucial November midterm elections.
The Climate, Taxes and Health Care Bill, dubbed the “Inflation Reduction Act”, was passed by 51 votes in favor of 50. In a difficult situation, Vice President Harris, who also serves as president of the Senate, cast a key vote and decided the final result.
The bill will then be sent to the Democratic-majority House of Representatives, which will reopen this Friday, for a vote, before being sent to Biden for signature.
Democrats say the bill is the largest investment in the fight against climate change in US history and aims to reduce greenhouse gas emissions by about 40 percent from 2005 levels by 2030.
Reduction in overall inflation The size of the bill has been reduced from the original $6 trillion to approximately $437 billion. It will be used to fight climate change and expand coverage of medical care and increase taxes on companies.
370 billion yuan to spray clean energy
The bill includes some of the most important climate legislation in the United States, estimates $369 billion in climate and clean energy programs, and allows governmentmedical(Medicare) negotiated lower prescription drug prices, poured nearly $80 billion into the IRS, and expanded subsidies for the Affordable Care Act health insurance. In addition, in addition to applying a minimum corporate tax rate of 15% for large companies, companies that own Treasury shares are also taxed at 1%, and approximately $300 billion is set aside to reduce future losses. goes.
On the climate front, the bill’s tax incentives aim to channel millions of dollars into wind, solar and battery development to push clean energy into the grid. Consumers get subsidies to install certain windows, heat pumps and other energy-efficient products, plus a $7,500 tax credit for buying electric vehicles, a big plus for electric-car makers like Tesla. However, electric vehicles must be built in North America, and automakers should stop relying on China’s battery supply chain as soon as possible.
These investments could help the US reduce greenhouse gas emissions by 31% to 44% by 2030 from 2005 levels, according to the Rhodium Group, a research firm. In addition, at the urging of Democratic MP Manchin, the bill provides support for conventional energy sources such as oil, natural gas and coal as well as nuclear power. Democrats have pledged to introduce legislation later this year to simplify the permitting process for energy projects.
In addition, part of the bill on the minimum corporate tax rate affects fewer than 150 companies that year, but technology companies such as Google parent company Alphabet and Facebook parent company Meta could be affected by the tax system.