WASHINGTON- Hundreds of billions of dollars for clean energy projects, cheaper prescription drugs and new taxes on companies are some of the keys to the investment plan of United States President Joe Biden, which the Senate has been discussing since this Saturday.
Some of the key points of the project:
$370 billion
If the project is approved, it will represent the largest investment in the history of the United States in the fight against climate change
Instead of trying to punish America’s biggest polluters, the bill offers financial incentives to move the world’s largest economy away from fossil fuels.
To this end, tax credits would be granted to producers and consumers of wind, solar and nuclear energy.
Once in effect, the legislation would allocate up to $7,500 in tax credits to each American who purchases an electric vehicle. Those who install solar panels on their roofs will have a subsidy of 30% of the cost.
Some $60 billion would go toward clean energy manufacturing, from wind turbines to processing the minerals needed for electric car batteries.
The same amount would be allocated to boost investment in disadvantaged communities, especially with grants for home renovations. The objective is to improve energy efficiency and access to less polluting means of transport.
Large investments are planned to protect forests from fires and for coastal areas suffering from the consequences of devastating hurricanes.
The project aims to help the United States reduce its carbon emissions by 40% by 2030, compared to 2005 levels.
health funds
The second key aspect of the legislation is to reduce the huge disparities in access to health care across the United States, primarily by curbing skyrocketing prescription drug prices.
If enacted into law, Medicare — health insurance for those over 65 or of modest income — could negotiate the prices of certain drugs directly with drug companies, which would probably allow better prices.
The plan would require drug companies to offer rebates on certain drugs if their prices rise faster than rising US inflation.
business tax
Along with these large investments, the so-called ‘Inflation Reduction Law’ would seek to reduce the federal deficit to a minimum with a tax of at least 15% on company profits when they exceed 1,000 million dollars.
The new tax is intended to prevent some companies from using tax havens to pay much less than they theoretically owe.
By some estimates, the move could generate more than $258 billion in tax revenue over the next 10 years.
