Senate Approves Inflation Reduction Act After Marathon Debate

stimulus check

Despite stiff opposition from the full Republican camp, the Inflation Reduction Act said through the Senate after a whole night of debate. The vote is a major win for President Joe Biden and the Democrats. The original Build Back Better Bill now moves to the House where the passage is likely to be a mere formality, given the Democratic majority.

It took Kamala Harris’ tiebreaking vote to break the 50-50 deadlock in a split Senate. The Inflation Reduction Act has been watered down by the Democrats to accommodate wayward Senators Joe Manchin and Kyrsten Sinema.

The Inflation Reduction Act will be the most substantial investment ever by the US to lower prescription drug prices and fight climate change. Democrats finally banded together despite the last-minute changes forced by Manchin and Sinema. President Biden managed to piece together major domestic agendas despite facing unified opposition from the GOP members.

Large parts of the Inflation Reduction Act appeared destined to be scrapped even weeks earlier as the wayward Democratic Senators used their power in a split Senate to push through personal agendas.

Inflation Reduction Act To Inject Over $370B In Energy And Climate

The act would push around $370B into various energy and climate programs, allowing the US to bring down emissions of greenhouse gas by over 40% to pre-2005 standards by 2030.

It will also achieve the long-standing goal of the Democrats to slash the prices of prescription drugs. Medicare will now directly negotiate medicine prices and put a cap on the price paid by people to $2,000 per year. low and moderate-income people will also get more health coverage subsidies for at least 3 years under the Affordable Care Act.

The additional expenses will be taken care of by an increase in taxes on corporations. This included a 15% minimum corporate tax and also additional taxes on stock buybacks by companies. But it remains to be seen if the Inflation Reduction Act lives up to its name and manages to bring down prices gradually.