This is the result of 18 months of negotiations and a marathon night of debates. The US Senate on Sunday, August 7th, approved Joe Biden’s major climate and health plan, giving the President a major milestone victory less than 100 days before the crucial election.
By their votes alone, Democrats have approved this more than $430 billion investment plan, which will be brought to the House of Representatives for a final vote next week before it is signed into law by Joe Biden.
This enormous envelope includes the largest climate investment ever made in the United States: $370 billion to reduce greenhouse gas emissions by 40% by 2030. So with this reform, an American will get up to $7,500 in tax credits for buying an electric car. The installation of solar panels on the roof is covered for 30%.
This reform must also make it possible to increase the resilience of forests in the face of the monster fires that are ravaging the American West and whose proliferation is directly attributed to global warming.
Also, billions of dollars in tax credits are being offered to the most polluting industries to help them in their energy transition, a move that has drawn criticism from the party’s left wing, which has had to back the text for lack of reach for a more ambitious deal after long months of negotiations .
In the Senate, Democrats enjoy a tiny majority. All – including the very centrist Joe Manchin, whose opposition to the text has long prevented its adoption by his party – have voted in favor of the plan. But this unity was achieved at the cost of compromise. Especially for the left wing of the party: if the text calls for $64 billion in investments in health and gradually lowering the prices of certain drugs, the progressives have also clearly abandoned their ambitions for free kindergartens and public universities in favor of better care for the elderly People.
In parallel with this massive investment, the bill plans to reduce the state deficit with a new minimum tax of 15% for all companies whose profits exceed $1 billion. It aims to prevent certain large corporations from taking advantage of the tax loopholes that have allowed them to pay far less than the theoretical tax rate. It is estimated that this measure could generate more than $258 billion in US federal revenue over the next 10 years.
The Republican opposition thinks the Biden plan is too expensive.