It's Far From Perfect, But the Inflation Reduction Act is Still a Big Effing Deal
No legislation is going to give everything we want or need. But this one is among the most significant to come out of Congress. It is, to quote Joe Biden, "A big f*cking deal."
Two weeks ago, the world suffered another climate change legislative let down when West Virginia Sen. Joe Manchin cited “historically high inflation” as his reason for opposing climate proposals for renewable energy and electric vehicles in the Clean Electricity Performance Program, a major initiative of the long sought-after Build Back Better reconciliation bill.
Calls then mounted for President Biden to declare a climate emergency that would allow the White House to bypass Congress to ban fossil fuel exports, ban new federal fossil fuel leasing on public land and waterways, and access further authority under the Defense Production Act (DPA) to kick-start clean energy development.
While Biden did not do that, there is cause for optimism now that Sen. Manchin seems to have had a change of heart.
It was announced Wednesday that Sen. Manchin has struck a deal with Sen. Majority Leader Chuck Schumer on what is now called the Inflation Reduction Act, which, according a White House press release, seeks to:
“Make prescription drugs cheaper by allowing Medicare to negotiate lower prices and we can lower health insurance costs for 13 million Americans, by an average of $800 a year, for families covered under the Affordable Care Act.
“We will improve our energy security and tackle the climate crisis — by providing tax credits and investments for energy projects. This will create thousands of new jobs and help lower energy costs in the future.
“This bill will reduce the deficit beyond the record setting $1.7 trillion in deficit reduction we have already achieved this year, which will help fight inflation as well.”
And, of course, the $739 billion question, “How are we going to pay for it?”
“We will pay for all of this by requiring big corporations to pay their fair share of taxes, with no tax increases at all for families making under $400,000 a year.”
In a joint statement, Manchin and Schumer stated:
“The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40% by 2030.”
“It does not include surtaxes on people making more than $10 million a year, ending a push by most Democrats to impose higher rates on the wealthy; nor does it include a global tax deal. Manchin said the bill in theory should be bipartisan but he believed Republicans would never touch the tax code for corporations.”
Sen. Manchin explained:
“In any other environment [than] what we have right now, this would be a bipartisan bill. I really believe that. This is the only vehicle I have to work with right now. We don’t know what the future will bring. But all indications, might be a little bit of a shake-up. And that changes the dynamics of getting something done.”
Manchin was previous opposed to new incentives for electric vehicles. Now, however, he now says the final deal does not exclude them.
He added the bill provides incentives to manufacture new car batteries in America, “and not only be able to assemble them, but be able to extract the minerals that we need, critical minerals, in North America,” helping to cut our reliance on foreign markets.
Sierra Club President Ramón Cruz released the statement:
“To borrow President Biden’s line, this is a big f*cking deal. Once passed, this transformative legislation will be the single largest investment in our communities — including those that have long been disproportionately impacted by climate-fueled disasters — and a healthy and secure future for all of us.”
With Biden’s popularity falling among younger voters, some are crediting the Inflation Reduction Act as a “last chance” opportunity to get them back.
Congress must act immediately to pass this landmark legislation.