Photo Credit: Susan Walsh
US President Joe Biden has finally signed into law the bill that proposes the increase of corporate taxes to aid in the restoration and rehabilitation of the country in several aspects. The process was long as it took over a year of debates and assessments over matters on tax, regulations, credits, and costs. Nevertheless, the law is a condensed form of the Build Back Better Plan the President hoped to push last year.
The bill sponsors include Senate Majority Leader Chuck Schumer, Senator Joe Manchin, and representatives Jim Clyburn and Kathy Castor. After being passed into law, the bill became known as the Inflation Reduction Act.
“With this law, the American people won, and the special interests lost. For a while, people doubted whether any of that was going to happen, but we are in a season of substance,” said Biden to the press.
He hopes that with the new law, the government will be able to combat pressing issues in the country. The law allocates $369 billion investment for energy and climate policies, $64 billion for reducing health insurance costs through the Affordable Care Act, and the imposition of a 15% corporate minimum tax on companies that earn over $1 billion annually.
The spending package of the law – set at $437 billion – would be able to raise $737 billion in the next decade. If completed, it would be the biggest contribution from the drug price reductions and taxes from companies. In addition, the IRS will be more equipped, meaning the country’s wealthy individuals would have to meet with the agency more frequently than before for audit purposes. As a result, an estimated $300 billion would be gained from the law in just a decade.
While marking a major victory for Biden’s administration, the newly-signed law is not exactly what Biden had pushed for earlier. For example, the Inflation Reduction Act does not contain provisions on universal child care and middle-class tax cuts – these were two of the highlights of Biden’s Build Back Better bill he and a band of Democrats lobbied to Congress last year.
Another victory for Biden in the Congress
The new law is another legislative victory for Biden over the summer. Earlier, he signed a bill increasing the allocation of funds for the domestic production of semiconductors and the increase of benefits for veterans who were victims of toxic burn pits in Iraq and Afghanistan. The President has also signed a multi-billion dollar bill with South Korea’s SK Group for semiconductor production investments and other technological advancements.
Similarly, Biden has also announced other operations that were lauded by many, including the continued support to Ukraine in the country’s struggle against the Russian invasion and taking out al Qaeda’s leader Ayman al-Zawahiri through a drone strike several weeks ago.
The President is hopeful that these accomplishments would help bolster the citizenry’s confidence in his administration and, in extension, the public’s trust in Democrats, who are hoping for a positive outcome for the upcoming mid-term elections.
Biden talks to the public
“Today, too often do we confuse noise with substance. Too often we confuse setbacks with defeat. Too often we hand the biggest microphones to the critics and the cynics who delight in declaring failure while those committed to making real progress do the hard work of governing,” the President told the public.
“Making progress in this country, as big and complicated as ours, clearly, is not easy. It’s never been easy. But with unwavering conviction, commitment and patience, progress does come.”
Biden also made sure to exact his words and emphasize that the Republicans voted against the bill.
“Every single Republican in Congress voted against lowering prescription drug prices, against lowering health care costs, against the fair tax system. Every single Republican — every single one — voted against tackling the climate crisis, against lowering our energy costs, against creating good-paying jobs. My fellow Americans, that’s the choice we face — we can protect the already powerful or show the courage to build a future where everybody has an even shot,” Biden said during a press conference.