All state subsidies in Biden's anti-inflation law
Biden signed the Inflation Reduction Act. Analysts think the law won't have a big impact on inflation, but it represents the U.S.'s largest investment in clean energy technologies (and more). All the details
On Tuesday, August 16, U.S. President Joe Biden signed the Inflation Reduction Act, a law that aims to lower health care costs, reduce greenhouse gas emissions and raise taxes on large corporations and wealthiest investors. Coming after more than a year of complex negotiations, it was approved by the House and Senate in recent days and was called on Tuesday by Biden "the biggest step forward ever made on climate".
ENERGY OBJECTIVES
The Inflation Reduction Act allocates 375 billion dollars over ten years, between spending and tax credits, in technologies for low-emission energy (solar panels, wind turbines, batteries, nuclear reactors, CO2 capture): it is the largest American investment in the fight against climate change, which aims not only to mitigate global warming but also to strengthen national energy security in an increasingly decarbonized future.
HEALTHCARE AND MEDICINES
The law also extends federal health insurance benefits and allows the government to negotiate the prices of prescription drugs (capping $2,000 a year) for seniors who fall under Medicare, the federal health insurance for people over 65.
BUDGET AND TAXES
The Inflation Reduction Act is expected to help reduce the U.S. federal budget deficit by $300 billion over ten years. By about 300 billion dollars will then increase taxes, which will be imposed mainly on large corporations.
POLITICAL DIFFICULTIES
As the New York Times recalls, despite having obtained important bipartisan victories over funding for infrastructure (the Infrastructure Investment and Jobs Act) and for the production of microchips (the CHIPS and Science Act), for months it had seemed that Biden would not be able to sign the Inflation Reduction Act due to internal divisions in the Democratic Party: the situation was unblocked only with an agreement between Joe Manchin (senator from Virginia). Western, centrist) and Chuck Schumer (Senator from New York and Senate Majority Leader).
Biden called the Inflation Reduction Act "the last piece" of his domestic agenda. The bill represents the reduced version of a much more ambitious initial plan, worth over 3000 billion dollars, which Manchin judged too expensive: his vote is fundamental in the Senate, where there is parity of seats (50 each) between Democrats and Republicans.
THE IMPACT ON INFLATION
According to the Republicans, the Inflation Reduction Act will not favor a lowering of the American inflation rate – to the highest since 1981 -, but on the contrary it will raise it, because the increase in taxes on large companies will lead to an increase in prices.
According to non-partisan analysts, despite the name, the Inflation Reduction Act will have only a minimally perceptible impact on prices.