United States Legislative Package
US Congress Decides To Invest Billions In Climate And Social Affairs
US President Biden’s plans for climate and social reforms already seemed to have failed. Now Biden has finally pushed a legislative package through Congress. Now it is not as ambitious as it was before. Still, it’s a presidential victory.
Success for US President Joe Biden: After a long dispute, Congress in Washington passed a package of laws to invest billions in climate protection and the social sector. After the Senate, the House of Representatives also approved the so-called Anti-Inflation Act on Friday. In both houses of parliament, all votes for the law came from Democrats in US President Joe Biden’s ranks, while all votes came from the ranks of Republicans.
Biden’s original plans for climate protection and social reforms were among the main projects of his tenure. The current package is compromised due to disputes within his party. There is only one part of it that the President once wanted to take forward. Biden wrote on Twitter on Friday evening that the law needed “many compromises.” That’s almost always the case with important things.”
At this historic moment, I want to thank Congressional Democrats for supporting the Inflation Reduction Act.
This required a number of compromises. It’s almost always important to do important things. I look forward to signing it into law. pic.twitter.com/S1WmyTSOBM
— President Biden (@POTUS) 12 August 2022
The fact that the law was passed at all was hardly expected until recently – a remarkable victory for the president. Biden has long struggled with poor approval ratings. Only 40 percent are satisfied with their work, no more than 55 percent are, according to data from the FiveThirtyEight website that brings together various surveys. His stats have improved a bit lately.
The so-called Anti-Inflation Act that Congress has now passed is much broader than it namesake. It includes the following aspects, among other things:
- Climate Protection: About $ 370 billion (about 359 billion euros) is to be invested in the sector over the next ten years. It aims to promote the manufacture of solar cells and wind turbines. Financial incentives are also provided for the construction of electric car plants. Energy research should be promoted. The measures should reduce CO2 emissions in the United States by about 40 percent by 2030.
- Affordable Medicines: For the first time, state health insurance for the elderly or disabled (Medicare) should be allowed to negotiate the prices of certain expensive drugs directly with drug companies. Democrats expect savings of about $290 billion over ten years.
By 2025, patient co-pays for the drug will be capped at $2,000 per year. In addition, health insurance premiums are expected to drop for millions of Americans.
- Steer: The legislative package aims to plug tax loopholes. Companies with profits of more than $1 billion annually must pay at least 15 percent in future taxes. This minimum tax should flow into the domestic exchequer about $313 billion over the next ten years.
The IRS is expected to receive an additional $80 billion over the same period. This should enable the IRS to collect an additional $124 billion in taxes from wealthy and highly profitable companies. According to the US government, households with a household income of less than $400,000 per year should not be affected.
- Loss reduction: The US government believes the legislative package could reduce the state’s deficit by more than $300 billion. This should also bring down inflation, which was 8.5 per cent in July.