Senate Democrats announce deal with Manchin, and Republicans take out their anger on veteransJuly 28, 2022
Some House Republicans are similarly planning to vote against things they had previously supported in retribution for the reconciliation deal, though given the Democratic House majority and the House’s simple majority vote rules, that’s less of an issue than making veterans exposed to toxins wait for the help they need as part of a temper tantrum.
Republican temper tantrums aside, the “Inflation Reduction Act of 2022” is, as announced, far better than expected. It includes $433 billion of new spending, focused on climate change and clean energy. It expands tax credits for clean energy producers, extending the typical one or two years of tax credit they’ve previously been offered to 10 years. There’s $30 billion in incentives to manufacture things like solar panels and wind turbines and batteries in the United States. There are tax credits for some buyers of electric vehicles and for making homes more energy efficient.
It does also have some bonuses for the fossil fuel industry, in line with Manchin’s coal-centric bank account and overall view of the world, but “the bill is still absolutely worth it for climate change,” Leah Stokes, an environmental policy professor at the University of California, Santa Barbara, told The New York Times.
Additionally, the bill includes a three-year extension of health care tax credits helping 13 million people, and allows Medicare to negotiate prices on some drugs.
It pays for all of this through tax changes including a 15% minimum tax for corporations and additional funding to allow the Internal Revenue Service to crack down on tax cheats. In addition to funding the investments in climate and health care, it includes $300 billion to cut the deficit, one of Manchin’s particular obsessions.
This is not the trillions of dollars in investment that the United States needs—and that truly fighting climate change requires—but it’s so, so much more than we’d come to expect, and it is a historic amount of funding to fight climate change.