House passes Inflation Reduction Act

Politics

President Joe Biden speaks in the Rose Garden of the White House in Washington, Wednesday, July 27, 2022. (AP Photo/Andrew Harnik)

(NewsNation) — The House passed the Democrats’ $700 billion energy and tax bill Friday, sending the measure to President Joe Biden’s desk.

“Families will see lower prescription drug prices, lower health care costs, and lower energy costs,” Biden tweeted. “I look forward to signing it into law next week.”

The bill is what remains of Biden’s initial vision of a $3.5 trillion plan that would have provided free kindergarten and community college plus paid family leave, among other Democratic priorities. It stalled and appeared dead when Senators Joe Manchin (D, W.Va.) and Kyrsten Sinema (D, Ariz.) would not sign on, citing the cost.

Republicans opposed the smaller version in each chamber. The House and Senate passed it along party lines, with Vice President Kamala Harris casting a tiebreaking vote in the Senate.

“Democrats, more than any other majority in history, are addicted to spending other people’s money, regardless of what we as a country can afford,” said House Minority Leader Kevin McCarthy, R-Calif. “I can almost see glee in their eyes.”

The U.S. will now invest $375 billion to incentivize people to move away from carbon-emitting energy to cleaner alternatives. The bill would raise an estimated $740 billion based on higher taxes on corporations and lower costs for the government on prescription drugs.

The IRS will also be getting around $80 billion over 10 years, which could hire as many as 87,000 employees. Republicans have criticized this part of the bill in particular, claiming they would be used to target “everyday Americans.” The Associated Press reports the Treasury will not increase its audits of people making less than $400,000 per year.

Democrats say the IRS is understaffed and is missing tax fraud as a result.

Despite the bill’s name, its direct impact on inflation is unclear. It comes just days after Democrats passed a bill boosting the computer chip industry and pledged to offer healthcare for veterans exposed to toxic burn pits.

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