WASHINGTON—President Biden on Tuesday signed into law much-anticipated legislation aimed at reducing health care costs, cutting greenhouse gas emissions and raising taxes on businesses and wealthy investors, marking more than a year of ongoing negotiations. Limited discontinuation and solidified his early economic policy legacy.
After garnering a standing ovation from a White House audience of aides and supporters, Mr Biden said, “This bill is the biggest step forward on climate change ever.”
Dubbed the Cut Inflation Act by Democrats, it will invest $370 billion in low-emission energy spending and tax credits to fight climate change. This increased federal health insurance subsidies, allowed the government to negotiate the price of prescription drugs for Medicare seniors, and cut the federal budget deficit by about $300 billion over his decade. It is expected that
The bill would add about $300 billion in taxes, primarily by imposing new taxes on large corporations. The law includes a new tax on certain corporate stock buybacks and a minimal tax on large corporations that use deductions and other methods to reduce taxes. We will also increase funding of the Internal Revenue Service to crack down on tax evasion and recover potentially hundreds of billions of dollars currently owed to the government but unpaid by high income earners and businesses.
It passed the House and Senate entirely on party line earlier this month, as Democrats adopted the legislative process to sidestep Republican filibusters.
The bill represents America’s largest investment in fighting climate change. It aims to help the United States reduce greenhouse gas emissions by an estimated 40% by 2030 compared to 2005 levels. This will bring the country closer to Biden’s goal of reducing emissions by at least 50% over that period.
For months it looked like Mr. Biden would never have to sign such a bill. Despite a bipartisan victory over the funding of infrastructure, including roads, bridges, water systems, and high-speed internet, and an industrial policy bill aimed at countering China, the president won’t do so much. Couldn’t get the party together on a final bill to carry. The rest of his economic agenda as much as possible, using only the Democratic vote.
But a last-minute compromise was struck between Democratic majority Senator Chuck Schumer of New York and Senator Joe Manchin III of West Virginia and a staunch centrist Democrat. , paving the way for the agreement to move forward. Manchin, Schumer and other lawmakers joined Biden in Tuesday’s signature.
“For those who thought Washington was broken and incapable of doing big things, the Democrats have shown that real change is possible,” Schumer said before Biden’s remarks.
Biden nodded at Manchin’s remarks. “Joe,” he said.
Emily Cochrane, Michael D. Shear When Lisa Freedman contributed to the report.
