Not as strong as the proposal President Joe Biden once envisioned to rebuild America's public infrastructure and family support system. Climate change and deficit reduction strategies remain important tasks.
The estimated $740 billion bill — set to pass the Senate and head to the House on Sunday – is full of party priorities. This includes limiting the cost of prescription drugs to the $2,000 out-of-pocket for seniors, helping Americans pay for private health insurance, and giving Democrats a historic campaign to fight climate change. That includes what we call our biggest investment, about $375 billion over 10 years.
Almost half of the funds raised, his $300 billion, will go toward paying the federal deficit.
It's all mostly funded by the new corporate tax, including a 15% minimum tax to ensure big companies don't skip paying taxes at all.
It is far from clear whether the 755-page bill, dubbed the Inflation Reduction Act of 2022, will significantly ease inflationary pressures, but millions of Americans will lose their health care and other costs. It is hoped that this will reduce costs somewhat.
The vote was 50-50, strictly in line with Senate party line, with all Democrats in favor, all Republicans against, and Vice President Kamala Harris voting his 51-50 vote. I cast a tie-break vote to pass. The House is due to vote by Friday.
What's included and not included in the final package:
Reduced prescription drug costs
Enabling negotiations has saved the federal government about $288 billion over a 10-year budget window.
These new revenues will go towards lowering the cost of medicines for the elderly, including a $2,000 co-payment cap for seniors to purchase prescriptions at pharmacies.
The funds will also be used to provide free immunizations to the elderly, according to the summary document.
For the elderly, the price of insulin also limits him to $35 a time. A provision to extend the insulin price cap to Americans with private health insurance was inconsistent with the Senate budget rule, and Republicans removed it from the final bill.
Help pay for health insurance
This bill extends subsidies provided during the COVID-19 pandemic to help some Americans buy their own health insurance. It's about helping people.
Additional aid was set to expire this year under previous pandemic relief. But the bill would allow the assistance to continue for another three years and lower premiums for those who purchase their own health insurance.
"The largest investment in climate change in the history of the United States."
The bill includes strategies to combat climate change, including investment in renewable energy production and tax rebates for consumers. plans to invest approximately $375 billion over 10 years in Buy a new or used electric vehicle.
This includes $60 billion in clean energy manufacturing tax credits and $30 billion in wind and solar production tax credits to help reduce the nation's energy dependence. Fossil fuels seen as a way to boost and support industry. The bill also provides tax credits for nuclear power and carbon capture technologies that oil companies such as ExxonMobil have invested millions of dollars in advancing.
This measure would impose new fees on excess methane emissions from oil and gas drilling, while giving fossil fuel companies access to more leases of federal land and waters.
43}A follow-up bill pushed by Senator Kirsten Cinema, the Arizona Democrat, and other Democrats in Arizona, Nevada, and $4 billion to deal with This includes conservation efforts in the Colorado River Basin, where approximately 40 million Americans depend for drinking water.
For consumers, tax cuts are an incentive to go green. One is his 10-year consumer tax credit for renewable energy investments in wind and solar. There are tax breaks for purchasing electric vehicles, including a $4,000 tax credit for purchasing a used electric vehicle and a $7,500 tax credit for new electric vehicles.
Overall, Democrats believe that this strategy could put this country on a path to reducing greenhouse gas emissions by 40% by her 2030, making it the "largest climate investment in US history." I think it will be
All this payment methods.
The bill's biggest revenue-boosting factor would be a minimum tax rate of 15% on companies whose annual profits exceed her $1 billion.
This is how we crack down on about 200 US. Companies that avoid paying the standard 21% corporate tax rate include those that end up paying no tax at all.
The new corporate minimum tax will begin after tax year 2022 and will raise approximately $258 billion over 10 years.
Revenue was supposed to be $313 billion, but Cinema insisted on changing the corporate minimum standard of 15% and allowed depreciation allowances used in the manufacturing industry. This will cut about $55 billion from total revenue.
To win over cinema, Democrats dropped plans to close the tax loophole that wealthy Americans have long enjoyed. This is the so-called carry interest under current law where wealthy hedge fund managers and others are subject to his 20% tax rate.
For years, the Left has sought to increase the effective interest rate, which was raised to 37% in the original bill, to suit higher earners. Cinema did not allow it.
Maintaining tax breaks for the wealthy would rob the party of his $14 billion in revenue they were hoping to help pay for the package.
Instead, Democrats, with Cinema's consent, will impose his 1% excise tax on share buybacks, raising about $74 billion over 10 years.
It also raises money by boosting the IRS to pursue tax fraud. The bill proposes her $80 billion investment in taxpayer services, enforcement, and modernization, which is expected to generate $203 billion in new revenue.
The bill is in line with Biden's original pledge not to raise taxes on family members and businesses earning less than $400,000 a year.
Lower drug prices for the elderly are funded by savings negotiated by Medicare and pharmaceutical companies.
Extra money to pay back the deficit
With about $740 billion in new revenue and about $440 billion in new investment, the bill would cut the deficit by the difference of about $300 billion. I promise to fill it.
The federal deficit surged during the COVID-19 pandemic, as federal spending surged and the country's economy was rocked by shutdowns, office closures, and other major changes. , tax revenue decreased.
The country's deficit has been increasing and decreasing in recent years. But the overall federal budget is on an unsustainable path, according to the Congressional Budget Office, which released a new report this week on long-term forecasts.
What remains.
This latest package popped up in late July after his 18-month start-and-stop negotiations that left many of Biden's more ambitious goals behind.
Senate Majority Leader Chuck Schumer (D., N.Y.) reached a deal with Joe Manchin to restore Biden's package and negotiate his Virginia Democrats West slimmed down to fit back into the table. Then I drew the rest of the party holdout, Cinema, with some additional changes.
While still solid by typical standards, the package is far from the sweeping his Build Back Better program Biden once envisioned.
Congress passed his $1 trillion bipartisan infrastructure bill for highways, broadband and other investments, but Biden signed into law last year, but the president and other important parties Priorities overlooked.
Among them was the continuation of the $300 monthly child tax credit, which was sent directly to families during the pandemic and is believed to have significantly reduced child poverty.
Also, for now, the first paid U.S. to provide free preschool and community planning for his college, as well as up to $4,000 per month for births, deaths and other critical needs. The family leave program has also been discontinued.
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Associated Press writer Matthew Daly contributed to this report.