The New Legislative Package

The New Legislative Package

The US Congress is about to pass a package of bills in the areas of climate, health care, and taxes. They are a small step in the right direction, with concessions to accommodate two crucial Democrats, Manchin (WV) and Sinema (AZ).

On climate there is $400 billion over ten years in tax credits to support electric vehicles and renewable energy sources. But at the same time new oil drilling leases are assured in the Gulf of Mexico and Alaska. And the Interior Department must continue to hold auctions for fossil fuel leases if it plans to approve new wind or solar projects on federal lands.

On health care, Medicare would be allowed to negotiate the price of prescription medicines with drug makers. It would cap the out-of-pocket annual cost to seniors for prescription drugs at $2,000.

The tax proposal includes a minimum 15% tax on corporations which report more than $I billion in annual income. The IRS, whose funding has been depleted in recent years, would get $80 billion to enforce the tax code on corporations and the rich. But there are new tax breaks for manufacturers and continued tax breaks for hedge funds and private equity firms.

There need be no cheering for this package of bills, but something is better than nothing.

(Source: The New York Times, 8/7/22)