The U.S. House of Representatives passed the Party-Wide Inflation Reduction Act on Friday.
The legislation passed in a vote of 220 to 207 secured a huge victory for President Joe Biden and the Democratic Party months before the midterm elections in November.
“This is a resounding victory for American families starting at their kitchen tables,” House Speaker Nancy Pelosi told House members. “Our Cut Inflation Act is a robust cost-cutting program that responds to the times, ensuring our families thrive and our planet survives.”
The Democratic Party rallied on all sides to praise the bill which addressed a host of issues beyond inflation, including taking aggressive action on climate change, cutting drug costs and prescription drugs and reducing the national deficit.
The plan includes a record $369 billion in spending on climate change and energy policies, which is expected to cut U.S. carbon emissions by about 40% by 2030.
It also allocates $64 billion to lower health insurance costs by locking in lower premiums under the Affordable Care Act, saving 13 million families an average of $800 a year.
The bill will also cap drug costs at $2,000 and allow the federal government to negotiate lower prices for prescription drugs.
It would be funded by imposing a 15% corporate tax on wealthy corporations. The plan also spends $80 billion to bolster the Internal Revenue Service’s enforcement and compliance divisions, which are expected to generate $124 billion in revenue.
Although the measure does not immediately affect rising gasoline and food prices, it aims to reduce the deficit by $300 billion over the next 10 years, with the total provisions of the bill estimated at $737 billion, as well as reducing the overall deficit by nearly $2 trillion over the next two decades.
The bill narrowly passed the Senate in a 50-50 vote with Vice President Kamala Harris’s deciding vote.
It now goes to Biden’s office to be signed into law.
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