On Friday, the House passed the above $430 billion ‘Inflation Reduction Act’ thus paving the way for the fulfillment of another part of President Joe Biden’s agenda. The Biden administration had put forth a domestic “Build Back Better” agenda. Although the agenda has not been able to fulfill its lofty ideals, it has done moderately well considering that the Senate is tied 50-50 and the Democrats have a slim margin in the House.
Earlier, Senate members had voted along party lines with 50 Democrats in favor and 50 Republicans against the Act. Vice Presidential Kamala Harris’ vote was required as the tie-breaker, to pass the legislation 51-50 through the process of reconciliation. The House passed the bill, on Friday with a 220-207 margin. All the Democrats in the House voted in favor while all the Republicans in the House voted against it.
Some of the key takeaways that will improve the lives of all Americans, though tax cuts and benefits of the ultra rich might decrease, are as follows:
$369 billion for climate and energy policies
$64 billion to extend Affordable Care Act program
$80 billion to improve enforcement and compliance capabilities of the IRS.
The Inflation Reduction Act will also bring about much needed reform in prescription drug pricing. Medicare will have the power to negotiate prices on 100 drugs over the next ten years. The Senate estimates that such reforms will bring it $265 billion. They expect boosted enforcement by the IRS to bring in $124 billion in revenue.
The Inflation Reduction Act will ensure that corporates pay a 15 percent alternative minimum tax. Earlier, corporates were successful in shrinking their tax burden much below 21 percent using losses and other deductions to lower taxes. A report by ProPublica, published months ago, showed that many corporates had paid almost zero to less than one to less than five percent taxes. An excise tax on stock buybacks is also expected to bring in $74 billion.
Although the Biden administration has been a little slow in bringing about the much needed reforms it had said it would bring, it has faced slim or non existent support from the GOP. President Biden has been waiting to sign bills that would take his agenda forward and is expected to sign the Inflation Reduction Act at the earliest, months before the upcoming midterms.
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