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Rep. Pramila Jayapal, D-Wash., speaks during a news conference with Sen. Elizabeth Warren, D-Mass., to announce legislation that would tax the net worth of America's wealthiest individuals at the U.S. Capitol on March 1, 2021. |
Democrats in the U.S. House on Friday gave final approval to a $740 billion bill without the help of a single Republican. This bill includes historic investments in the development of renewable energy, a minimum tax on large corporations, and a historic requirement that Medicare directly negotiates the costs of a subset of prescription drugs.
Even though the package includes substantial handouts to the fossil fuel industry in addition to the plethora of tax incentives and subsidies for green energy that could significantly reduce greenhouse gas emissions, Democratic supporters of the bill and outside organizations have hailed the Inflation Reduction Act (IRA) as the most important climate action measure ever passed by U.S. lawmakers.
The reconciliation measure was approved by the Senate on a party-line vote last weekend, and the final House vote on Friday was 220 to 207, with all Democrats voting in favor and every single member of the Republican caucus voting "no."
Rep. Pramila Jayapal (D-Wash.), head of the Congressional Progressive Caucus, stated after the vote that "Today, Democrats are upholding our commitments to the American people and advancing vital progressive causes."
"The Democratic majority in Congress has unanimously delivered a broad plan to tackle climate change, tax justice, and reduce prescription costs to the President's desk," Jayapal said. "After more than a year of discussions and much longer campaigning on these causes." Despite being supported by the majority of Americans across the political spectrum, not a single House Republican voted for this measure, unlike their Senate counterparts.
President Joe Biden is expected to sign the bill into law as soon as Friday evening, capping off more than a year of negotiations that were repeatedly sabotaged by Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.), who succeeded in dramatically scaling back their party's agenda.
The IRA is "a game-changer and grounds for hope," according to Johanna Chao Kreilick, head of the Union of Concerned Scientists, despite the fact that certain clauses "risk boosting fossil fuel production and consumption."
The majority of Americans favor sustainable energy solutions, and we now have a Congress that is paying attention to the data on the severity of human-caused climate change, according to Kreilick. Republican politicians have mostly declined to support important climate policies, which is incredibly disappointing and disturbing given how urgent action is required.
Every member of the Congressional Progressive Caucus voted for the bill despite grassroots climate advocates' vocal concerns about the legislation's giveaways to the fossil fuel industry, including a section that requires new oil and gas lease sales as a prerequisite for wind and solar development.
Rep. Jamaal Bowman (D-NY) remarked upon the bill's passing, "It is a start, and we have more work to do to completely respond to the cost of the living challenge."
Bowman stated, "People deserve reduced insulin pricing and lower prescription prices generally, even if you have private health insurance." "In addition to ultimately reducing our reliance on oil, gas, and coal, we must safeguard vulnerable populations from the pollution caused by fossil fuels. Our efforts continue to provide high-quality, reasonably priced housing, child care, education, a $15 minimum wage, and other things like immigration justice. We vow to tackle every objective in Build Back Better and go above and beyond as we celebrate the accomplishments accomplished today."
Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, claimed at a press conference in advance of Friday's vote that the IRA "marks the largest-ever federal investment in climate action, putting the United States back on track to cut carbon pollution by 40% by 2030." However, given that this prediction depends on the efficacy of unproven carbon capture technology, some climate advocates have questioned this claim.
Jayapal stated on the House floor, referring to the bill's omission of funds for housing and daycare, "We've got more to do." "But let's celebrate this significant investment in the people today."
"We ... are heartbroken to see investments in care, in housing, immigration, workforce, and more left on the cutting room floor."
— The Recount (@therecount) August 12, 2022
— House Progressive Caucus Chair Rep. Pramila Jayapal (D-WA) signals she is not satisfied with the end product of the Inflation Reduction Act. pic.twitter.com/JC1HNI9B8m
The IRA, according to House Speaker Nancy Pelosi (D-Calif.), moves toward "loosening the grip" of corporate interests on Congress.
But in many respects, the law illustrates the influence that corporate America continues to have on the political process. In addition to the gifts Manchin obtained for Big Oil, Sinema helped the private equity sector win the last-minute repeal of tax rules intended to close the infamous carried interest loophole.
Republicans eliminated a provision that would have capped insulin copays for people with private insurance at $35 per month after the unelected Senate parliamentarian provided them with an opening to do so. Both a $2,000 yearly restriction on beneficiaries' prescription medication spending as well as an insulin payment cap for Medicare Part D subscribers remains in the measure.
Despite regressive late-stage changes to the bill, corporate lobbying groups such as the U.S. Chamber of Commerce mobilized aggressively against the IRA, with particular focus on tanking its drug price provisions and the 15% minimum tax on highly profitable companies.
Liz Zelnick, a representative for Accountable.US, stated just before the vote on Friday, "Multibillion-dollar corporate special interests, especially Big Pharma, say the sky would fall if they finally pay their fair share in taxes or negotiate better prices." The industry's official papers, which show record profits, almost any fair taxes paid, and significant giveaways to rich investors and executives, contradict its statements.
According to Zelnick, "the fact is that extremely prosperous firms can afford to contribute more to a functioning economy, but many would prefer to keep charging seniors and families whatever they want in exchange for essentially nothing." Therefore, Congress must complete the task of reducing expenses, curtailing corporate greed, and ensuring affluent corporations pay their fair share.
The Inflation Reduction Act, which has received harsh criticism, "takes vital measures to encourage renewable energy, but entirely fails to reign in toxic, destructive fossil fuel exploitation," according to Wenonah Hauter, executive director of Food and Water Watch.
"We can only think of the Inflation Reduction Act as the start of our reaction to the climate catastrophe. More must be done, especially to limit all future fossil fuel projects "Hauter remarked. Unfortunately, the bill's true goal is to encourage more drilling and fracking, which is an unacceptable trade-off that would worsen pollution in communities that are on the front lines of environmental injustice.
Our attention now has to be on blocking Senator Manchin's terrible "side agreement" to expedite fossil fuel permitting, Hauter said. "Any progress that may be made as a consequence of the passing of this law would be doomed by this giveaway to huge corporate polluters."
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