In Washington, the Democrats’ majority in the House of Representatives has also approved President Joe Biden's mega climate law. This legislation not only allocates hundreds of billions of dollars for environmental and climate policy in agriculture, but also for modernization and addressing deferred maintenance of rural America.
Earlier, a compromise was reached in the Senate. Biden said he would sign the law next week, after which the White House will hold a celebration on September 6th in honor of what he called 'this historic legislation.'
With this tax, health, and climate law, the Democrats and President Biden have scored a major victory just three months before crucial midterm elections.
The parliament approved the $430 billion-plus package with 220 votes in favor and 207 against, as all Democrats supported the proposal and all Republicans opposed it.
The measure ends a more than year-long struggle within the Democrats during which President Biden’s initial total package was considerably 'pared down.'
The plan includes a record sum of $369 billion for climate and energy policies to reduce CO2 emissions by about 40% by 2030. There is also $64 billion to lower health insurance costs.
Much attention is focused on the mega subsidies for the production of electric vehicles in the U.S. It is not the buyers who receive discounts or subsidies upon purchase, but the car manufacturers upon delivery. This incentive therefore does not apply to imported foreign electric vehicles.
The bills are estimated to raise $737 billion in higher tax assessments over the next ten years for large corporations and wealthy Americans. Biden puts an end to many 'exemptions' for large multinationals with a minimum tax of 15 percent. Democrats say the bill will also reduce the government deficit by more than $300 billion.