Biden signs the Inflation Reduction Act with some compromises.
After more than a year of discussion over expenditure, taxes, tax credits, and regulations, President Joe Biden signed his comprehensive tax, health, and climate legislation. However, the bill is a dramatically lessened version of the $1.75 trillion Build Back Better proposal he was battling for last year.
The President signed the Inflation Reduction Act, which includes Senate Majority Leader Chuck Schumer, Senator Joe Manchin, and Representatives Jim Clyburn and Kathy Castor.
President Joe Biden stated before signing the legislation, that the American people would win and that special interests would lose.
The new measure includes $369 billion in climate and energy policies, $64 billion to expand an affordable healthcare policy that reduces health insurance premiums, and a 15% corporate minimum tax for businesses that earn more than $1 billion a year.
The government plans to spend $737 billion on the $437 billion expenditure package, the majority of which will come from corporate tax increases and lower prescription price cuts for Medicare users. Around $124 billion is expected from the Internal Revenue Service's more stringent and frequent audits of the wealthy. Estimates suggest a deficit savings of approximately $300 billion over ten years as a result of this strategy.
In order to reach a compromise on some of the things he desired most in his initial Build Back Better package, such as tax cuts for the middle class and universal child care, Manchin and Schumer both reached an agreement earlier this month.
At the last minute, Arizona Democratic senator Kyrsten Sinema pushed through a measure that would have closed the so-called carried interest loophole, which allows private equity managers and hedge fund executives to pay significantly lower taxes than most taxpayers.
Before presenting the president, Schumer thanked Manchin and House Speaker Nancy Pelosi. Schumer also commended the White House staff who gave their all to completing this bill.
The measure passed the Senate by a 51 to 50 vote on August 7, with Republicans' backing. Democrats won with Vice President Kamala Harris' tiebreaking vote.
The measure received 220 yes votes in the House of Representatives on Friday, and 207 no votes.
Biden mentioned that every Republican in the House of Representatives had voted against the measure during his remarks.
Let's be clear: In this historic moment, Democrats sided with the American people, and every single Republican in the Congress sided with a special interest in this vote, he said. Every single one.