On Tuesday August 16, US President Joe Biden signed a $700 billion bill designed to address climate change and healthcare costs, as well as increase taxes for the wealthy.
The new legislation encompasses provisions to lower the cost of prescription drugs and allocate $375 billion to combat climate change, marking the most substantial federal investment in the issue to date.
Democrats are optimistic that the bill’s passage could provide a political advantage leading up to the November midterm elections, where voters will determine whether the Democrats maintain control of Congress for the next two years.
President Biden praised the bill as the “final piece” of his domestic agenda as he signed it into law.
According to an analysis by the consultancy Rhodium Group, the bill is expected to reduce US emissions by up to 44% by 2030, compared to the current trajectory, which would result in emissions being reduced by up to 35%.
While the bill does not mandate emission reductions for companies, it does offer tax incentives for businesses to invest in renewable energy and provides rebates for individuals purchasing electric cars or making energy-efficient home improvements.
The legislation establishes a minimum 15% tax for corporations and excludes tax hikes for individuals earning less than $400,000 annually.
Additionally, the bill enables the government to negotiate lower prices for certain prescription medications covered under the Medicare health insurance program for individuals over 65.
Calling it a “historic moment,” Biden emphasized, “Every single Republican in Congress voted against this bill.”
Meanwhile, Republican Senate leader Mitch McConnell contended that the legislation “means higher taxes, higher energy bills, and aggressive IRS [tax] audits.”