Democrats pass signature legislation addressing climate change, health care, taxes

Many Democrats are celebrating this week after the passage of the party’s signature bill that tackles health care, taxes, and climate change.

The Inflation Reduction Act (IRA) passed the Senate with the tie-breaking 51st vote coming from Vice President Kamala Harris after more than 15 hours of debate. North Carolina Senators Thom Tillis and Richard Burr voted against the bill.

Though the $740 billion package is far smaller than the original $3.5 trillion legislation Democrats proposed, there are still important parts of the bill that will make a positive difference for many Americans:

• The bill will lower the price of prescription drugs, and starting in 2025, Medicare beneficiaries get a $2,000 annual cap on out-of-pocket drug expenses. The IRA will help approximately 2 million North Carolinians on Medicare.
• Corporations making over $1 billion in profits per year will have to pay a 15% minimum corporate tax. Much of that money will be used to fund other programs that will help green the economy.
• The IRA will put hundreds of billions of dollars into fighting climate change in the U.S. by investing in clean energy, highlighting environmental justice in impacted communities, curbing methane emissions and reducing overall emissions by about 40% below 2005 levels by 2030.

While many critical investments are needed, this bill marks one of the many steps to tackle climate change, make health care affordable and ensure corporations are paying their fair share. As columnist E.J. Dionne wrote in The Washington Post, “Despite partisan obstruction, arcane rules and dilatory habits, the Senate struck a blow against hopelessness.”