After greater than a yr of debate over costs, taxes, tax credits and regulations, President Joe Biden finally signed his sweeping tax, health and climate bill into law — albeit a significantly reduced version of the $1.75 trillion Construct Back Higher plan he was pushing for last yr.
The president signed the newly renamed Inflation Reduction Act into law flanked by Senate Majority Leader Chuck Schumer, D-N.Y.; Sen. Joe Manchin, D-W. Va.; and Reps. Jim Clyburn, D-S.C. and Kathy Castor, D-Fl.
“With this law, the American people won and the special interests lost,” Biden said in remarks before he signed the bill.
The brand new law features a $369 billion investment in climate and energy policies, $64 billion to increase a policy under the Inexpensive Care Act to cut back medical insurance costs, and a 15% corporate minimum tax geared toward firms that earn greater than $1 billion a yr.
Read more: Biden’s corporate tax hike within the Inflation Reduction Act won’t hurt most U.S. firms, Wall Street analysts say
The $437 billion spending package is anticipated to lift $737 billion in revenue over the following decade, the most important share coming from reductions in drug prices for Medicare recipients and tax hikes on corporations. Roughly $124 billion is anticipated to come back from increased IRS enforcement, meaning tougher and more frequent audits for the rich. It’s projected to cut back the deficit by greater than $300 billion over a decade.
To get a deal done, Biden had to present up a few of his favorite pieces of his original Construct Back Higher bill, including universal child care and tax cuts for the center class. Manchin, a conservative Democrat, was also a late Democratic holdout until he and Schumer struck a deal moving the bill forward earlier this month.
Freshman Sen. Kyrsten Sinema, D-Ariz., held up passage within the evenly divided Senate on the last minute over a provision that may have closed the so-called carried interest loophole that enables private equity managers and hedge fund executives to pay significantly lower tax rates than most taxpayers.
While introducing the president, Schumer thanked Manchin together with House Speaker Nancy Pelosi, D-Calif., and the White House staff “who gave it their all to ending this bill.”
The bill narrowly passed the U.S. Senate 51-50 on Aug. 7 with no Republican votes. Vice President Kamala Harris forged the tiebreaking vote, giving Democrats a win.
The U.S. House passed the bill Friday by a 220-207 margin.
In remarks, Biden noted that each Republican in Congress voted against the measure.
“Let’s be clear. On this historic moment, Democrats sided with the American people and each single Republican within the Congress sided with a special interest on this vote,” he said. “Each one.”