After more than a year of debating costs, taxes, tax credits and regulations, President Joe Biden has finally signed his sweeping tax, health and climate bill into law – although he this is a significantly scaled down version of the $1.75 trillion Build Back Better plan he was pushing for. Last year.
The President signed the new Inflation Reduction Act, joined by Senate Majority Leader Chuck Schumer, DN.Y. ; Sen. Joe Manchin, DW. Virginia.; and Representatives Jim Clyburn, DS.C. and Kathy Castor, D-Fl.
“With this law, the American people won and special interests lost,” Biden said in remarks before signing the bill.
The new law includes a $369 billion investment in climate and energy policies, $64 billion to expand a policy under the Affordable Care Act to reduce health insurance costs, and a minimum tax on 15% for companies that earn more than a billion dollars a year.
Read more: Biden’s corporate tax hike in the Cut Inflation Act won’t hurt most U.S. businesses, Wall Street analysts say
The $437 billion spending package is expected to generate $737 billion in revenue over the next decade, with the largest share coming from lower drug prices for Medicare beneficiaries and corporate tax hikes . About $124 billion is expected to come from increased IRS enforcement, which means stricter and more frequent audits for the wealthy. It is expected to reduce the deficit by more than $300 billion over a decade.
To make a deal, Biden had to drop some of his favorite pieces from his original Building back better bill, including universal child care and middle-class tax cuts. Manchin, a conservative Democrat, was also a Democratic latecomer until he and Schumer struck a deal to push the bill forward earlier this month.
Freshman Sen. Kyrsten Sinema, D-Arizona, blocked passage in the equally divided Senate at the last minute over a provision that would have closed the so-called carried interest loophole that allows private equity managers and executives hedge funds pay much lower tax rates than most taxpayers.
During the president’s presentation, Schumer thanked Manchin as well as House Speaker Nancy Pelosi, D-California, and White House staff “who gave their all to finish this bill.”
The bill narrowly passed the US Senate 51-50 on Aug. 7 without a Republican vote. Vice President Kamala Harris cast the deciding vote, giving Democrats a victory.
The U.S. House of Representatives passed the bill on Friday by a margin of 220 to 207.
In his remarks, Biden noted that all Republicans in Congress voted against the measure.
“Let’s be clear. In this historic moment, Democrats have sided with the American people and every Republican in Congress has sided with a particular interest in this vote,” he said. “Each.”