President Biden Signs "Inflation Reduction Act"
President Biden signed the “Inflation Reduction Act,” which was passed by both houses of Congress. The ceremony took place at the White House, in the presence of Vice President Kamala Harris and Democratic leaders in Congress.
Even before the signing, Joe Biden called the new law “the key to restoring economic growth through clean energy and manufacturing.” He said the law would make the largest investment in clean energy, which the White House administration calculates will guarantee a growth recovery for the American economy, as well as help lower inflation, reduce the budget deficit, address climate change and reduce the cost of health care for Americans.
“Today serves as proof that the American spirit is full of vitality, America’s future is bright, and the opportunities that America has always promised [its citizens] are real. It’s about ensuring that American families will progress and prosper,” President Biden said just before signing the law. – “In the coming years, thanks to the ‘Inflation Reduction Act,’ 13 million people will save an average of $800 each year on health insurance… This bill is the most significant step in the fight against climate change.”
Many U.S. economists agree that the plan could reduce inflation slightly in the long run and improve the fiscal outlook for the federal budget.
The Congressional Budget Office estimates that implementing the law would reduce the budget deficit by $305 billion over the next decade, but the figure could be higher. According to the Treasury Department, expanding the IRS’s authority would help raise an additional $400 billion for the budget.
The nonprofit Committee for a Responsible Federal Budget Foundation estimates that deficit reduction over the next 20 years could be as much as $1.9 trillion through lower prescription drug prices.
However, opponents of the law — primarily Republicans in Congress — warn of rising energy costs and that prescription drug price caps would reduce the amount of medical drugs available for sale.
“This bill will hit manufacturing,” Republican Senator Mike Crapo of Idaho said earlier. – The bottom line is that this tax is dangerous for America.”
Senate Republican leader Mitch McConnell said even before the vote that the bill is “a checklist of tax increases and budget waste on green projects.”
Republicans also point out that the new law’s 15% corporate tax floor would violate Biden’s pledge not to raise taxes on Americans earning less than $400,000. As evidence, they cite the Joint Committee on Taxation’s calculations that a portion of corporate tax costs would be passed on to workers in the form of lower wages.