What does the US Democrats’ mega-bill contain?

First modification: 08/09/2022 – 04:33

The package, worth 740,000 million dollars, approved by the US Senate on Sunday and headed to the House of Representatives, is full of party priorities.

The rule seeks to limit prescription drug costs to $2,000 for seniors, as well as finance part of what Americans pay for private health insurance. The highest investment would go to the fight against climate change for a decade.

Nearly half of the money raised, $300 billion, will go toward reducing the federal deficit. The project will be funded by new taxes on businesses, including a minimum 15% tax on large businesses to ensure they don’t miss any taxes, as well as anticipated federal savings from lower drug costs from the ‘Medicare’, which will be negotiated with pharmaceutical companies.

The Inflation Reduction Act of 2022, a 755-page bill, makes it unclear how it will ease inflationary pressures, though the immediate impact is that millions of Americans will see some relief in health care and other costs.

Voting ran strictly along party lines in the Senate, with all Democrats for, all Republicans against, and Vice President Kamala Harris providing a tie-breaking vote for approval 51-50. The House of Representatives is expected to vote on Friday.

This includes the bill

The measure would allow the ‘Medicare’ program to negotiate the prices of prescription drugs with pharmaceutical companies, which would save the federal government about 288,000 million dollars over 10 budget years.

These revenues would go toward reducing drug costs for seniors, capped at $2,000 out-of-pocket for seniors buying prescriptions at pharmacies. The money would also be used to offer free vaccines to the elderly, who are now among the few who are not guaranteed free access, according to a document.

Insulin prices would be capped at $35 per dose.

The bill would also expand subsidies provided during the pandemic to help Americans who buy health insurance on their own. The previous pandemic aid expires this year, but the bill would allow the aid to continue for three more years, lowering insurance premiums for people who buy their own health policies.

The largest investment to combat climate change

Nearly $375 billion would be spent over the decade on climate change strategies, including investments in renewable energy production and tax breaks for consumers to buy new or used electric vehicles, a boon for producers like Tesla. .

Also contemplated is about $60 billion for a tax credit for clean energy manufacturing and $30 billion for a tax credit dedicated to wind and solar energy production. The bill grants tax credits for nuclear energy and carbon capture technology, in whose development some oil companies such as ‘Exxon Mobil’ have invested millions of dollars.

How would the project be financed?

The bill’s biggest take comes from a minimum 15% tax on businesses that make more than $1 billion in annual profits. It’s a way to clamp down on some 200 US companies that avoid paying the standard 21% tax rate.

The new minimum corporate tax would take effect from the next fiscal year and would raise more than 258,000 million dollars throughout the decade.

with AP