Hundreds of billions of dollars for clean energy projects, cheaper prescription drugs and new corporate taxes are some of the key items in US President Joe Biden’s massive investment plan, which the House of Representatives is expected to pass Friday after Senate approval.
Here’s a closer look at the distinctive elements of the plan, which could offer the Democratic leader a major political victory ahead of crucial midterm elections in November.
– $370 billion for clean energy, climate –
If passed, the law will be the largest investment in US history in the fight against climate change.
Instead of trying to punish the biggest polluters in American companies, the bill presented by Biden’s party instead proposes a range of financial stimulus aimed at steering the world’s largest economy away from fossil fuels.
Wind, solar and nuclear energy producers and consumers would receive tax credits.
If passed, the law would give up to $7,500 in tax credits to every American who buys an electric vehicle. If you install a solar system on your roof, you get 30 percent of the costs subsidized.
Around $60 billion would be allocated to manufacturing clean energy, from wind turbines to processing minerals needed for electric car batteries.
The same amount would be used for programs to encourage investment in disadvantaged communities, notably through grants for home renovations to improve energy efficiency and access to less polluting transport.
Huge investments would flow to make forests less vulnerable to wildfires and protect coastal areas from erosion from devastating cyclones.
The law aims to help the United States reduce its carbon emissions by 40 percent by 2030 compared to 2005 levels.
– $64 billion for healthcare –
The second important aspect of the legislation is to help narrow the huge disparities in access to healthcare across the United States, particularly by curbing skyrocketing prescription drug prices.
If the bill eventually becomes law, Medicare — the national health insurance company for people aged 65 or older or on modest incomes — could be allowed, for the first time, to negotiate the prices of certain drugs directly with Big Pharma, which would likely yield far better deals.
The plan would require drug companies to offer discounts on certain drugs if prices rise faster than US inflation.
It would also extend benefits under Barack Obama’s signed Affordable Care Act – known colloquially as Obamacare – until 2025.
– Minimum corporate tax of 15% –
Alongside these huge investments, the so-called “Inflation Reduction Act” would seek to reduce the federal deficit by imposing a minimum corporate tax rate of 15 percent on all companies with profits over $1 billion.
The new tax aims to prevent certain large corporations from using tax havens to pay far less than they theoretically owe.
It is estimated that the measure could generate more than $258 billion in tax revenue for the US government coffers over the next 10 years.
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