President Joe Biden signed the Inflation Reduction Act at the White House on Tuesday, injecting $473 billion in new spending on climate and health care amid concerns it will do little to reduce inflation.
Biden thanked Joe Manchin, the moderate Democratic senator who killed his initial Build Back Better package and eventually signed the new legislation after months of negotiations — including the guarantee of a gas pipeline in his home state of West Virginia.
Republicans have criticized the bill, claiming it will impose taxes on middle-class Americans and do little to help reduce rising costs.
“Joe, I never had any doubts,” he told the Democrat at a signing ceremony, where Biden praised the measure as a tool to take on special interests.
Biden, who wore a mask after first lady Jill Biden tested positive for COVID, called it a “historic moment” and beat up Republicans for voting against in unison.
“For a while, people doubted that anything was going to happen,” he told Senate leader Charles Schumer, who helped seal the final deal with Manchin.
Schumer himself called it the “most important” thing Congress had done in a long time. He also praised “one of the most productive periods in Senate history,” and curiously told the president, “We wouldn’t be here without you.”
Biden returned to the White House from vacation on Tuesday to sign the bill that ripped party leaders from the jaws of defeat — only to fly home to Delaware after a very short round of victory.
President Joe Biden Returns to the White House from South Carolina to Sign the Inflation Reduction Act
The House passed the bill 220-207 Friday in a party vote after it passed the Senate 51-50, with all Democrats and Vice President Kamala Harris voting for it during the reconciliation process, which protected it from a Republican filibuster.
Details on the 2022 Inflation Reduction Act
Senators Joe Manchin and Chuck Schumer’s new bill will bring in $739 billion in new revenue through several proposals:
$313 billion by introducing a minimum corporate tax rate of 15 percent
$288 Billion by Enabling Medicare to Negotiate Lower Drug Prices
$124 Billion Due to Strong IRS Tax Enforcement
$14 billion from closing the loophole for money managers
GOP wins in the bill:
Republicans forced Democrats to cut bill from bill that would cap price of insulin to $35
Senator John Thune’s amendment exempts some companies from the recently passed minimum of 15 percent corporate tax
The bill also includes $433 billion in new spending:
$369 billion in energy security and climate change
$64 billion to extend health care subsidies for the Affordable Care Act
All this would leave $300 billion to reduce the deficit
It ranks as one of Biden’s most significant legislative achievements, and the president has scheduled a bill to be signed in the White House’s State Dining Room to advocate.
It comes after a well-rested Biden returns from vacation on Kiawah Island, South Carolina at the home of a Democratic donor after a battle with Covid and a subsequent rebound case.
According to the White House schedule, Biden will be in the building barely more than five hours.
The Bidens got more bad health news on Tuesday, when the White House announced that first lady Jill Biden had tested positive for Covid on a PCR test.
She will remain in South Carolina, while Biden will fly to the couple’s Wilmington home shortly after signing the bill.
Biden tested negative for an antigen test Tuesday morning and will mask for 10 days in indoor environments when he is close to other people, according to the White House.
He’ll be back on the road soon, as he looks to sell the legislation and boost Democrats as they try to maintain control of the House and Senate, where the party has recently won polls in some key Senate races.
In the coming weeks, the president will hold a cabinet meeting focused on implementing the Inflation Reduction Act, travel the country to highlight how the bill will help the American people, and host an event to mark the entry into force of the Act. bill at the White House on Sept. 6,” the White House said.
The bill includes $430 billion in spending, brings in $737 billion over a decade in revenue, and is expected to shave about $300 billion of the deficit. It raises $265 billion by allowing the government to negotiate with drug companies to lower the cost of Medicare prescription drugs.
The climate benefits, totaling $369 billion, are expected to reduce carbon emissions by 40 percent from previous levels, and it includes extensions to the Affordable Care Act grants totaling $64 billion.
The new tax on share buybacks came at the urging of Senator Kyrsten Sinema (D-Ariz.), after she scrapped a provision to close the carried interest loophole. sen. Joe Manchin (DW.Va.) had been negotiating that provision with Senate Majority Leader Charles Schumer when the two reached a deal that suddenly revived stalled legislation.
It jettisoned many of the major social programs from Biden’s original Build Back Better proposal, but gave Democrats a piece of legislation to pass as the parties begin pushing ahead of the fall election.
The US middle class will eventually pay $20 billion in taxes as a result of Democrats’ Inflation Reduction Act, an unbiased report from the Congressional Budget Office suggests
Americans earning less than $400,000 a year could end up paying $20 billion of the new tax revenue brought in by the Democrats’ Inflation Reduction Act, a recent analysis of the bill suggests.
The impartial Congressional Budget Office (CBO) found on Aug. 12 that an amendment by Republican Senator Mike Crapo would have caused the legislation to bring in $20 billion less than in its current form.
His measure would have guaranteed that Americans earning less than $400,000 would not be targeted by the $80 billion IRS expansion included in the bill.
Crapo’s amendment was not passed, nor did the CBO score the legislation before it was first passed in the Senate along party lines in a 51-50 vote.
The Democrat-controlled House of Representatives passed the bill Friday.
No Republican in either house voted for the bill.
The CBO’s analysis showing that middle-class Americans will pay new taxes contradicts Biden’s promise not to increase fines for those earning less than $400,000.
The CBO also found that the effect of the Inflation Reduction Act on rising consumer prices would be “negligible.”
It comes despite Treasury Secretary Janet Yellen writing a letter to the IRS urging them not to spend the extra money on that group of taxpayers.
“I recommend that any additional resources — including new staff or hired auditors — not be used to increase the share of small businesses or households below the $400,000 threshold being audited from historic levels,” Yellen wrote last week. .
President Joe Biden cycles along the beach in Kiawah Island, SC, Sunday, August 14, 2022. Biden is on vacation with his family on Kiawah Island. He flies to his home in Wilmington, Del. on Tuesday evening.
The White House announced on Tuesday that first lady Jill Biden tested positive for Covid
Democratic West Virginia Senator Joe Manchin negotiated deal outline with Majority Leader Senator Charles Schumer