- Biden on Tues. signed the projected $739B Inflation Reduction Act, which includes tax, health, and energy provisions - the biggest legislative step yet toward his promise to wean the US off of fossil fuels.
- Biden has praised the $369B climate aspects of the bill, including incentives to switch to clean energy-driven vehicles and home appliances, predicting it could save consumers hundreds of dollars per year.
- Estimates say the bill will cut carbon emissions by 40% by 2030. Tax credits of $4k and $7.5k are included for the purchases of electric vehicles, excluding vehicles with battery materials processed in China.
- While the climate-related provisions will take effect immediately, the extended Affordable Care Act subsidies and $35-per-month cap on insulin prices for Medicare enrollees won't begin until January. Medicare prescription negotiations also won't begin until 2026.
- The tax provisions are expected to raise about $300B through new taxes on corporate stock repurchases, a minimum tax on corporations that use deductions to avoid taxes, and increased funding for the IRS to crack down on tax evasion by the wealthy and corporations.
- Regarding inflation, the Congressional Budget Office has said the bill will have "a negligible effect" on rising prices in 2022 and will range between reducing or increasing inflation by 0.1% next year.
- Democratic narrative, as provided by The Atlantic. After decades of failed attempts in the Senate, Democrats have successfully passed landmark legislation to address the climate emergency, increase competitiveness with China, reduce the deficit, and protect vulnerable Americans from corporate extortion by Big Pharma. The Inflation Reduction Act is Biden's greatest political achievement to date.
- Republican narrative, as provided by VOA. This legislation is going to make the US worse off, not better. Increasing taxes and the power of the IRS will cost ordinary Americans dearly. The bill will only exacerbate a looming inflation crisis, and further regulating the healthcare industry will undermine the competitiveness of the pharmaceutical market. The GOP was right to unify in opposition.