U.S. Senate Passes biggest Climate bill in U.S. history.
On Sunday the United States Senate passed The Inflation Reduction Act and it’s expected to pass in the House of Representatives later this week. The Inflation Reduction act is a package that would fulfill multiple longstanding goals including addressing climate change, lowering the cost of prescription drugs, and adjust tax code. This $700 billion bill dedicates about $369 billion to climate action - officially becoming the largest investment in climate action in US history.
The tiebreaking vote in the 51-50 decision was cast by Vice President Kamala Karris after a marathon session of negotiations and voting.
In summary the package includes legislation around healthcare, taxes, and climate change. Within healthcare the bill seeks to lower the cost of certain prescription medications provided through Medicare, an insurance program for those who are 65 years or older. By negotiating lower costs of these prescriptions is it expected to save hundreds of billions of dollars over the next decade. This will apply to 10 drugs beginning in 2026 and will expand to other drugs in the subsequent years. Around taxes, this packages includes a minimum 15% tax on most corporations that make more than $1 billion a year in profits. Lastly, as we begin address climate change this bill is forecasted to cut the country’s carbon emissions by 40% by 2030. Within the bill it is estimated that,
“Some households could receive up to $7,500 in tax credits to buy an electric car, or $4,000 for a used car. Billions will also be spent in an effort to speed up the production of clean technology such as solar panels and wind turbines. There will also be $60bn given to communities that have suffered the most from fossil fuel pollution.” - BBC News
This climate action side of The Inflation Reduction Act comes just after extreme weather has been seen across the US. Most notably a recent heatwave as well as deadly flooding in Kentucky that killed at least 37 people and counting. Democratic Senate majority leader Chuck Schumer said:
"After more than a year of hard work, the Senate is making history. To Americans who've lost faith that Congress can do big things, this bill is for you." - Chuck Schumer, Democratic Senate Majority Leader
This bill does come with a fair amount of skepticism and worry from those against the bill. Arguing around costs, that it will not lower inflation fast enough and/or would increase the cost of US oil and gas production, and event that certain technologies could prolong the use of fossil fuels, among others. As of right now, this is seen as a huge success for the Democratic party and a massive step forward for climate action. The Democratic party’s ability to pass the legislation had been in question and many thought the bill was dead until a deal between and Democratic Senate Majority Leader Chuck Schumer and Republican US Senator Joe Manchin agreed to include the climate provisions in the bill.
“There is no reason to be a purist about this stuff. The only thing we should care about is, how do we achieve the absolute largest emissions reductions given the current configuration of Congress.” - Sen. Brian Schatz (D-Hawaii)
Sources:
https://www.reuters.com/world/us/us-senate-leader-schumer-says-excise-tax-stock-buybacks-included-climate-tax-2022-08-05/
https://www.bbc.com/news/world-us-canada-62457386
https://www.nytimes.com/2022/08/07/us/politics/climate-tax-health-care-bill.html
https://www.politico.com/news/2022/08/07/inflation-reduction-act-climate-biden-00050230
https://www.esgtoday.com/senate-passes-landmark-bill-with-largest-ever-us-climate-investment/
https://www.usatoday.com/story/news/nation/2022/08/07/kentucky-flooding-appalachia-climate-change/10215762002/
