After months of negotiating, Democrats have finally cleared another hurdle to go ahead and push through a climate, tax, and health care package. Included in the package are some items which would salvage some key features of Biden’s domestic agenda. This package will fulfill long-time goals set by the President which include countering the toll of climate change on a planet that continues to get warmer every year, taking necessary steps to lower the cost of prescription drugs, and revamping the tax code in hopes to make it more equitable.
Specifics
A large part of this deal would invest nearly $400 billion over the next 10 years in tax credits aimed at getting consumers to start purchasing more electric vehicles and other electric utilities to further the US’s shift to renewable energy sources like wind and solar power. Energy experts say this could help the United States cut its greenhouse gas emissions by 40% by the end of the decade. If this plays out as expected, it would put the Biden administration within striking distance of their original goal of cutting emissions in half by 2030. These tax credits will also include $30 billion to speed up the production of solar panels, wind turbines, batteries, and critical mineral processing.
For the first time, Medicare will be able to negotiate with drugmakers on the price of prescription medicines, a proposal that would be able to save the federal government billions. This would apply to 10 drugs off the bat beginning in 2026 and would expand to allow for more drugs in the following years.
Tax Hike for Wealthy Companies, IRS Funding Boost
Another piece of this package includes a push for increased tax rates for some of the country’s wealthiest corporations and individuals. A 15 percent corporate minimum tax on the profits companies report to shareholders. It applies to companies that report more than $1 billion in annual income on their financial statements, however, they are still allowed to utilize tax credits, deductions, and other tax treatments to lower their effective tax rates.
The IRS will also be receiving funding of $80 billion over 10 years. This massive influx in funding will be mainly used to try and recover additional tax revenue by cracking down on more corporations and tax evaders.
Wrap Up
If this package works out as intended it could be a huge step in the right direction regarding Bidens end of decade goal of halving the country’s greenhouse gas emissions.