Biden signs inflation-reduction law into law, sets 15% minimum corporate tax rate
After more than a year of wrangling over costs, taxes, tax breaks, and regulations, President Joe Biden finally signed his own comprehensive tax, health, and climate bill — albeit a drastically reduced version of the $1.75 trillion better rebuild plan he had been pushing for. last year.
The president signed the Inflation Reduction Act newly renamed into law flanked by Senate Majority Leader Chuck Schumer, DNY; Senator Joe Manchin, Deutsche Welle. Virginia; and Representatives Jim Cleburne, DS.C. and Cathy Castor, De-Phil.
“With this law, the American people have won, and special interests have lost,” Biden said in statements before he signed the law.
The new law includes a $369 billion investment in climate and energy policies, a $64 billion policy extension under the Affordable Care Act to reduce health insurance costs, and a 15% minimum corporate tax target for companies earning more than $1 billion annually.
Read more: Wall Street Analysts Say Biden’s Corporate Tax Increase in Inflation Cuts Act won’t hurt most US companies
The $437 billion spending package is expected to raise $737 billion in revenue over the next decade, with the largest share coming from drug price cuts for Medicare recipients and corporate tax increases. Nearly $124 billion is expected to come from increased IRS enforcement, which means tougher and more frequent audits of the wealthy. It is expected to reduce the deficit by more than $300 billion over a decade.
To get a deal done, Biden had to give up some of his favorite pieces of the original Build Back Better bill, including universal childcare and tax cuts for the middle class. Manchin, a conservative Democrat, was a Democratic naysayer of late until he and Schumer struck a deal to push the bill forward earlier this month.
New Senator Kirsten Senema, a Democrat from Arizona, halted at the last minute a passage in the evenly divided Senate on a provision that would have closed the so-called carry interest loophole that would allow private equity managers and hedge fund executives to pay much lower tax rates than most taxpayers.
During the president’s introduction, Schumer Manchin along with House Speaker Nancy Pelosi, a Democrat from California, thanked the White House staff “who did their best to end this bill.”
The bill narrowly passed the US Senate 51-50 on August 7 without a Republican vote. And Kamala Harris, the vice president, cast the tie-breaking vote, giving the Democrats the win.
The US House of Representatives passed the bill Friday by a margin of 220-207.
In remarks, Biden noted that every Republican in Congress voted against the measure.
“Let’s be clear. At this historic moment, Democrats have stood by the American people, and every Republican member of Congress has stood with a special interest in this vote,” he said. “Everyone alone.”