LUS President Joe Biden signed into law his sweeping climate and health investment plan on Tuesday, bringing his Democratic camp a major political victory less than three months from crucial legislative elections.
Presented by the Biden administration as the largest investment in the United States in the fight against climate change, the text provides for a series of financial incentives intended to move the American economy towards renewable energies, limits the price of certain drugs and creates a minimum corporate tax rate. “A country can be transformed. This is what is happening today, ”said Joe Biden, in a speech with electoral overtones delivered before signing this reform, called “Inflation Reduction Act”, at the White House. “It’s about the future. This is about bringing progress and prosperity to American families,” he said. “It’s about showing America and the American people that democracy still works in the United States. »
$370 billion to reduce greenhouse gas emissions
The result of difficult negotiations with the right wing of the Democratic Party, the envelope includes the largest investment ever committed in the United States for the climate — 370 billion dollars to reduce greenhouse gas emissions by 40% by by 2030. The second part of this major investment plan aims to partially correct the huge inequalities in access to healthcare in the United States, in particular by lowering the price of drugs. Medicare, a public health insurance system intended among others for those over 65, will for the first time be able to negotiate the prices of certain drugs directly with pharmaceutical companies, and thus obtain more competitive rates.
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To finance these investments, the reform provides for the adoption of a minimum tax rate of 15% for all companies whose profits exceed one billion dollars. This new tax aims to prevent certain large companies from using the tax loopholes which have allowed them to pay far less than the theoretical rate. According to estimates, this measure could generate more than 258 billion dollars in revenue for the US federal state over the next ten years.
