The US Senate finally passed the “Inflation Reduction Act” on Sunday (7th), a $437 billion bill that will raise taxes on companies, fight climate change, and reduce the cost of prescription drugs, a symbol of President Biden’s 11 A major victory ahead of the mid-month elections.
With 51 Democrats in favor and 50 Republicans against, the Senate passed the Inflation Reduction Act, which is expected to be passed by the House of Representatives on Friday. The case is finally sent to Biden to sign and become law.
U.S. Vice President Harris, who also serves as the speaker of the Senate, cast a key vote on Sunday to break the deadlock between Democrats and Republicans and give Democrats a victory.
Democrats say the bill is the largest investment in the fight against climate change in U.S. history, and aims to reduce greenhouse gas emissions by about 40 percent from 2005 levels by 2030.
The “Inflation Reduction Act” is about $437 billion, of which the U.S. has invested $369 billion in climate and clean energy programs. The bill covers new measures that allow the government to negotiate lower prices for prescription drugs and imposes a 1% tax on corporate treasury stock plans.
In the fight against climate change, consumers will get a $7,500 tax credit for buying an electric car, a big plus for electric car makers such as Tesla. However, automakers must assemble electric vehicles in North America and must stop relying on the Chinese battery supply chain as soon as possible.
Last year, Biden proposed a goal of making up half of all new car sales by 2030. Automakers such as General Motors, Toyota and Volkswagen said on Sunday that a rule that automakers must assemble electric vehicles in North America will make it difficult for the U.S. government to meet the standard.