Joe Biden signs new $437 billion Inflation Reduction bill into law. What is it?

US President Joe Biden just signed the Inflation Reduction bill into law. The bill seeks to fight climate change, raise taxes on corporations and expand health care coverage.

According to Biden, it is a major legislative victory that the Democrats have achieved, by delivering what he called the "final piece" of his pared-down domestic agenda. The act aims to raise $737 billion in revenue from different taxes and reforms. It will also invest $437 billion in various sectors. 

Timeline of the Bill: The Bill was introduced as "The Build Back Better Act" on September 27, 2021, and was used by the US Senate as the legislative vehicle for this Bill.

On August 7, 2022, during an unlimited marathon voting session on amendments, which lasted nearly 16 hours, the Senate passed the bill. The bill was passed on a 51-50 vote, with all Democrats voting in favour, all Republicans opposing, and Vice-President Kamala Harris breaking the tie (by voting in favour). 

On August 12, 2022, the bill was passed by the House on a 220-207 vote, with all Democrats voting in favour and all Republicans voting against it.

On August 16, 2022, the bill was signed into law by President Joe Biden.

What does this new bill say? Known as the Inflation Reduction Act, it represents a major legislative accomplishment for Democrats three months ahead of the midterm elections. It passed the House and the Senate last week with the support of every Democrat and no Republicans. 

The bill seeks to

• fight climate change,
• raise taxes on corporations,
• and expand health care coverage.

It is the biggest climate package in US history, designed to: 

• Negotiate lower prescription drug prices
• Ensure that corporations and the wealthy pay the taxes they owe
• Combat inflation by reducing the federal deficit.

The bill also includes policies for increasing the generosity of medicare benefits, encouraging the development of renewable energy, and reducing the impact of climate change. 

Looking at climate change: The Bill also has a very important provision for "climate change." Spending a swapping total of $300 billion, the bill aims to reform the energy sector and bring climate reform.

"This bill is the biggest step forward on climate ever - ever - and is going to allow us to boldly take additional steps toward meeting my climate goals," Biden said.

The bill also includes $60 billion for improving renewable sources of energy like solar panels and wind turbines. It also includes tax credits for electric vehicles and measures to make homes more energy efficient. 

It also aims to lower greenhouse gas emissions by 40% by the end of the decade. However, Biden's original goal was to reduce the levels by 50%. 

Problems with the bill: There is no denying that this move comes just three months before the mid-term elections. Many experts are calling it a political stunt, as Joe Biden's image has tanked since last year. 

It also misses the Democrats' original ambitions. Family policies like a generous child tax credit and paid family leave, which were in the bill and were passed by the House last year, are missing in the final act.

Even certain health policies, such as an expansion of Medicaid to give more low-income adults health insurance, were removed to pare down the bill's cost. And though the promise is to spend good money on working on climate change issues, the aim is lower as compared to the previous figures.

Criticism from the Opposition: Republicans, who opposed the bill in its entirety, are not happy, of course.