After more than a year of debate over costs, taxes, tax credits and regulations, President Joe Biden finally signed his sweeping tax, health andclimate bill into law.
The Inflation Reduction Act includes a $369 billion investment in climate and energy policies, 64 billion to extend a policy under theAffordable Care Act to reduce health insurance costs, and a 15% corporate minimum tax for companies that earn more than $1 billion a year.
Wall Street analysts say Biden's tax hike won't hurt most US companies.
Reductions in drug prices for Medicare recipients and tax hikes on corporations are expected to raise $737 billion in revenue over the next ten years. Increased IRS enforcement is expected to result in more frequent audits for the rich. The deficit is expected to be reduced by more than $300 billion over the next decade.
Universal child care and tax cuts for the middle class were some of the things Biden had to give up in order to get a deal done. Senate Majority Leader Chuck Schumer, D-N.Y., and conservative Democratic Sen. Joe Manchin of West Virginia struck a deal to move the bill forward.
A provision that would have closed the carried interest loophole that allows private equity managers and hedge fund executives to pay lower tax rates than most taxpayers was held up by a freshman senator.
The bill was narrowly passed by the US Senate. The tiebreaking vote was cast by the Vice President.
The bill was passed by the US House of Representatives.
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