Biden signed Tuesday’s Inflation Reduction Act (IRA) into law. Biden stated that the “American people won” while “the special interests lost”. He also praised Democratic support, and criticised Republicans for not supporting it.
The president returned from a week-long vacation to Washington after spending time on Kiawah Island, South Carolina. Biden was accompanied by Jim Clyburn (House Majority Whip) and Chuck Schumer (Senate Majority Leader) at an event in the White House’s State Dining Room.
Biden stated that the law should “deliver results for the American people” instead of being a law.
A summary prepared by Senate Democrats shows that the bill was approved earlier in the month by both the Senate and House of Representatives. The bill is expected to cost $437 billion. According to estimates by Senate Democrats, $369 billion will go towards investments in “Energy Security and Climate Change”.
After Harris, Vice President broke the tie, the House passed the legislation in just a few days.
Schumer, D.N.Y. Biden thanked him and thanked his Democratic co-workers, including Senator Joe Manchin (D.W.Va.). He thanked Biden and his Democratic colleagues, including Senator Joe Manchin, D.W.Va., for their cooperation in passing the package. It showed how dedicated and persevering our caucus, he said.
He stated, “It’s about showing Americans and American citizens, despite all of the talk about it being destroyed, that democracy still works in America.”
Biden stated that the president has a “critical duty” to defend America and pursue justice to ensure fairness and deliver outcomes that allow all citizens to lead a consequence-oriented, prosperous life in a safe and secure country.
Biden stated that the Inflation Reduction Act would not raise taxes for Americans with incomes below $400,000. This is in line with his campaign promise.
Biden attacked Republicans by claiming that Democrats supported Americans and that all Republicans in Congress supported special interests.
He stated, “My fellow Americans, that’s the choice before us. Either we defend the already powerful or we can show courage to build a future that is fair for all.
After more than a year of negotiations, the legislation is the result cuts to the Build Back Better Act. The Senate rejected the bill, which initially required more than $3 trillion in spending.
Biden asked Congress to pass the bill earlier in the month. Biden admitted that the bill was not perfect, even though they had reached an understanding with Democrats.
Democrats believe the legislation will raise $737 billion to decrease the deficit. This includes $124 million in IRS tax enforcement. This is an estimate of the expected result of 87,000 IRS agents being employed to increase audits.
The bill includes a 15% minimum corporate income tax. This is expected to bring in $222 billion, according to the Joint Committee on Taxation. The Senate also includes prescription drug pricing reform. It is estimated that it will bring in $265 millions.
Multiple studies have proven that the Inflation Relief Act won’t reduce inflation. According to the Congressional Budget Office the bill will have “a negligible effect” on inflation in 2022. Its effect on inflation in 2023 would vary between 0.1% and 0.1%.
Inflation levels in the United States are at an all-time high. Inflation levels in the United States reached an all-time high of 3% in July for the first time in months. Prices are however at their highest point in over 40-years.
According to the Labor Department the Consumer Price Index (which measures the cost of everyday goods like gasoline and groceries) increased 8.5% in July over a year ago. This is less than the 9.1% year-over-year increase recorded in June. In the one-month period ending June, prices remained unchanged.
Inflation has created severe financial pressures in America, with many Americans having to pay more for basic necessities like food and rent. Price fluctuations are particularly detrimental to low-income Americans, who suffer disproportionately from the increase in their burden.
Despite seeing significant wage increases in recent months, inflation has severely eroded American workers’ wage gains. After taking into consideration higher consumer prices, the Labor Department reported that real hourly earnings dropped 0.5% in July. On an annual basis, real earnings decreased by 3% in July.
Inflation was caused by the drop in energy prices. Last week, there was some relief for U.S. households. Although energy costs fell by 4.6% in July, they were still 32.9% higher than one year ago. However, gasoline prices dropped 7.7% in July. They are up 44.9% over last year.
While other price increases were significant in July, inflation remained stubbornly high. The 12-month food index grew 1.1% to 10.9%, the largest increase since May 1979. Consumers paid more for cereals and chicken, milk, fresh vegetables, and other food items.
Since February 1991, shelter costs have increased by 5.7%, or 40%, and are the main cause of core inflation. This is the highest rate of growth since February 1991.
Rent prices increased by 0.7% per calendar month and 6.3% annually. Rising rents are a worrying trend as rising housing costs directly impact household budgets.