In a major victory for US President Joe Biden ahead of November’s crucial midterm elections, the Senate has passed the climate and health bill worth $750 billion.
Marking the biggest investment in US history in the fight against climate change, the bill proposes a series of financial incentives aimed at steering the world’s biggest economy away from fossil fuels.
For example, every American who buys an electric vehicle will be allotted up to $7,500 in tax credits and anyone installing solar panels on their roof would see 30 per cent of the cost subsidised.
From wind turbines to the processing of minerals needed for electric car batteries, around $60 billion would be allocated for clean energy manufacturing.
Through grants for home renovation to improve energy efficiency and access to less polluting modes of transportation, the same amount would go towards programs to help drive investment in underprivileged communities.
In comparison to 2005’s levels, the bill aims to help the United States reduce its carbon emissions by 40 percent by 2030.
By reining in skyrocketing prescription drug prices, the bill will help reduce the huge disparities in access to health care across the United States.
In order to yield better results, the nation’s health insurance plan for those aged 65 and older, Medicare could be permitted to negotiate prices of certain medications directly with Big Pharma for the first time.
If the prices rise faster than soaring US inflation the plan would require pharmaceutical companies to offer rebates on certain drugs.
Extending benefits under Barack Obama’s signature Affordable Care, the bill will ensure cheaper prescription drugs.
Seeking to pare down the federal deficit through the adoption of a minimum corporate tax of 15 percent for all companies, the Inflation Reduction Act will prevent certain massive firms from taking undue advantage of tax havens to pay far less than what they theoretically owe.
Over the next 10 years, the measure could generate more than $258 billion in tax revenue for US government coffers, according to estimates.
(With inputs from agencies)
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