Joe Biden’s record is growing. The US president 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.
The biggest 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 tax rate minimum on large companies.
“A country can be transformed. This is what is happening today, “said Biden, in an election-sounding speech delivered before signing this reform, dubbed the “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 for the climate
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% of here in 2030.
The second part of this major investment plan intends to partially correct the huge inequalities in access to care 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.
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.
Legislation in sight
Before the summer, the legislative elections promised to be catastrophic for the Democrats, victims of a paralyzed Congress and a Joe Biden breaking records of unpopularity in the face of galloping inflation. But the tenant of the White House has recorded a series of victories, with the death of the leader of Al-Qaeda, the sharp drop in the price of gasoline and this compromise in Congress.
Republicans remain favorites to regain control of the House, but Democrats can still hope to maintain a majority in the Senate. Joe Biden will play big for the second half of his term, but also for his future: even if he has indicated that he intends to be a candidate, a rout in November could spell the end of his ambitions.