Inflation Reduction Act is approved by the US Senate

• Senate approves Inflation Reduction Act.
• Another victory for Biden.
• Who will this new law help?

On Sunday the US Senate managed to approve the Democrats’ ambitious climate, health and fiscal plan which means billions of dollars will go to promote clean energy in the next ten years. The bill was approved by the progressives in the chamber with Vice President Kamala Harris making the tie-breaking vote.

The Inflation Reduction Act, the official name of the bill, went ahead thanks to the disciplined votes of the Democratic senators, who endured a marathon session with more than 20 hours of debate and amendments in which the Republicans tried to force politically difficult votes with the intention of breaking the progressive consensus, according to EFE.

It has been a long and difficult road

«It’s been a long and difficult road, but we’re finally at the end,» Democratic leader Chuck Schumer said triumphantly, moments before voting began. The bill went ahead despite the passage of one of the last Republican amendments, aimed at limiting the 15% on companies that earn more than a billion dollars a year, thanks to the support of the wayward Democratic senator Kyrsten Sinema, which raised fears for the future of the agreement.

There were also some amendments from Democratic Senator Bernie Sanders to try to tilt some of the climate and health aspects of the bill further to the left, but all were rejected in order to keep the bill as intact as possible and thus ensure the support of all progressives.

The bill was believed to have died

Despite the complicated process, Dems managed to stick together and voted in unison for the plan, including fractious senators Kyrsten Sinema and Joe Manchin, whose recent support for the proposal revived a bill thought dead until just over a week ago.

The bill required the affirmative vote of all the progressive representatives to go forward, since all the Republicans were against it. Currently, the Senate is divided 50-50 between progressives and conservatives, although the Democrats have the tie-breaking vote of the US vice president, who acts as president of the chamber.

Who will win with the Inflation Reduction Act?

The Inflation Reduction Act contemplates more than $400,000 million in new investments, almost all focused on giving a boost to the green energy industry and reducing the emissions of polluting gases. It would represent the largest public investment in fighting climate change in the history of the United States. Its supporters estimate that it will serve to reduce the country’s polluting emissions by 40% between now and 2030.

To finance it, the Democrats propose a minimum tax of 15% on companies with profits of more than a billion dollars, and to strengthen the IRS to make it more difficult to avoid payments, among other things. Filed Under: Inflation Reduction Law

What are the benefits of this law?

In addition, the bill would allow Medicare, a health coverage program for people over 65, to negotiate the prices of prescription drugs. The White House hopes that this will reduce drug prices and help in part to reduce the pressures of high inflation, 9.1% in June, as well as helping to reduce the public deficit.

“It is legislation for families who cannot make ends meet, for the elderly who cannot pay for their medications, and for children with asthma,” said Schumer when introducing the proposal on Saturday afternoon. Republicans argued, however, that the plan will only serve to increase inflation, and that the tax hikes will end up hurting the middle and working classes more than big corporations. Filed Under: Inflation Reduction Law

What is needed for the Inflation Reduction Act to become law?

The Inflation Reduction Act must now go through the House of Representatives, where the Democrats have a large majority, before being definitively approved. This Saturday’s vote in the Senate is a huge victory for Biden and his party.

This comes just a few months before November mid-term elections, in which many predict will tilt the balance in Congress toward the Republicans. Filed as: Inflation Reduction Law