Last Friday (12th), the U.S. House of Representatives passed the $430 billion Inflation Reduction Act, a major healthcare and climate plan, by 220 votes to 207. President Joe Biden immediately said that this was a victory for the American people.
The Inflation Reduction Act includes the largest climate change investment in U.S. history, approximately $370 billion to reduce carbon emissions and promote green technologies. Experts estimate that the bill will help reduce U.S. carbon emissions by approximately 40% by 2030 compared to 2005 levels. The bill also provides $64 billion to alleviate healthcare issues.
The largest climate spending bill in U.S. history, the scaled-down Build Back Better Act, finally passed
Biden proposed a "Build Back Better" plan during his campaign and introduced the Build Back Better Act in 2021. However, the bill failed to gain support from key lawmakers and was subsequently amended and renamed the "Inflation Reduction Act." The Senate passed the "Inflation Reduction Act" on the 7th, and the House of Representatives passed it on the 12th. Biden's signature is expected to take effect this week.
The Inflation Reduction Act will impose a 15% minimum tax on companies with profits exceeding $1 billion and a 1% tax on treasury stock. It is expected to raise $740 billion in tax revenue over 10 years, with $300 billion earmarked for federal deficit reduction and the remainder for climate change and health care spending.
House progressives complained that the Inflation Reduction Act was much smaller than the Build Back Better Act, but they still supported it to get climate policy underway.
Climate spending priorities: industrial transformation, green consumption, and climate justice
The Inflation Reduction Act includes approximately $370 billion in climate spending. For industry, $60 billion provides tax credits for clean energy production and manufacturing facilities, and $30 billion for wind and solar production. For consumers, the bill encourages consumers to purchase appliances, heat pumps, and other energy-efficient appliances, and also offers tax credits for electric vehicles.
The bill also provides $60 billion for pollution reduction and environmental justice, including air quality monitoring and building resilience for communities most affected by climate change, such as those affected by rising sea levels and wildfires.
The Inflation Reduction Act provides approximately $64 billion in health care funding, which will be used to lower prescription drug prices and extend premium subsidies for 13 million low- and middle-income households.
With the US midterm elections approaching in November, passing a climate bill at this time is a major boon for the Democrats. Biden tweeted that day, "Today, the American people won, and the special interests lost," adding that the bill will result in lower prescription drug prices, lower health insurance premiums, and lower energy costs. He looks forward to signing the bill next week.
Source: Environmental Information Center (https://e-info.org.tw/node/234780)
