On Sunday, the Senate voted along party lines to pass a massive spending bill. All 50 Democrat Senators voted for the bill, while all 50 Republican Senators voted against it. Vice President Kamala Harris was the tie breaking vote.
The $740 billion spending package now heads to the House of Representatives, which is set to reconvene at the end of this week to vote on it, according to The Hill. The legislation is projected to increase inflation, despite it being named the “Inflation Reduction Act,” and will raise taxes on virtually all Americans – including on those making less than $10,000 a year.
The largest portion of the bill is a $369 billion climate spending package which is claimed will cut carbon emissions by 40% by 2030, according to an analysis conducted by Majority Leader Chuck Schumer’s (D-NY). The plan additionally includes tax credits of $4,000 and $7,500 to buy used and new electric vehicles, but it does not allow those credits to be used on vehicles that have batteries with materials processed in China. Despite the ongoing energy crisis, the bill also includes a 16.4 cents per barrel tax on crude oil and petroleum products imported into the U.S.
The bill will also allow Medicare to negotiate the prices of some medications. “The Health and Human Services secretary would negotiate the prices of 10 drugs in 2026, and another 15 drugs in 2027 and again in 2028. The number would rise to 20 drugs a year for 2029 and beyond,” CNN reported. “This controversial provision is far more limited than the one House Democratic leaders have backed in the past. But it would open the door to fulfilling a longstanding party goal of allowing Medicare to use its heft to lower drug costs.”
“Democrats are also planning to extend the enhanced federal premium subsidies for Obamacare coverage through 2025, a year later than lawmakers recently discussed. That way, they wouldn’t expire just after the 2024 presidential election,” CNN added. “To boost revenue, the bill would impose a 15% minimum tax on the income large corporations report to shareholders, known as book income, as opposed to the Internal Revenue Service. The measure, which would raise $258 billion over a decade, would apply to companies with profits over $1 billion.”
The news comes after a survey from YouGov revealed that only 12% of Americans believe the Democrats’ “Inflation Reduction Act” will actually reduce inflation. That same day, a group of 22 Republican governors released a joint statement slamming the Democrats’ Inflation Reduction Act, noting that it is a massive spending bill and echoing Americans’ concerns that it would worsen inflation.
The group was led by Governors Henry McMaster (R-SC) and Brian Kemp (R-GA).
“The Democrats’ solution to 40-year high inflation is passing another reckless tax and spending spree to the tune of $740 billion, affecting Americans in every tax bracket,” the statement said. “While denying recession, Democrats want to raise taxes on businesses and manufacturers, which will force higher costs onto consumers, worsen inflation, and aggravate shortages.”
“With sky high prices at the pump, the last thing Americans need is for Democrats to punish energy producers, which will ultimately hurt working families struggling to pay for gas, goods, food, and utilities,” the statement continued. “Our citizens cannot afford Joe Biden’s broken promises on taxes and Democrats’ inflationary spending that will only exacerbate the economic crisis they created.”
