The largest investment ever adopted in the United States in the fight against climate change, the text provides in particular for financial incentives intended to move the American economy towards renewable energies, but also limits the price of certain drugs and creates a rate of minimum tax on big business.

“A country can be transformed. This is what is happening today”, welcomed Joe Biden from the White House, in a speech with electoral accents delivered before signing this reform, called “Inflation Reduction Act”.

"This is about the future. This is about bringing progress and prosperity to American families," he said.

"This is about showing America and the American people that democracy still works in the United States."

Joe Biden was originally advocating for an even bigger investment plan, but the very fact that he can enact this reform represents a near political resurrection for Democrats ahead of November's midterm elections, traditionally lost by the ruling camp.

The result of difficult negotiations with the right wing of the Democratic Party, the envelope includes 370 billion dollars to reduce greenhouse gas emissions by 40% by 2030.

The Republican Party has called tax credits of up to $7,500 for the purchase of an electric car a "scam", but the environmental group Sierra Club hailed the "bold" step.

"Future generations will remember this day as the day the tide turned against the fossil fuel industries sector, in favor of a healthier, cleaner and fairer future for everyone, across the country," he said. commented the president of the NGO, Ramon Cruz.

Democrat successes

The second part of this major investment plan intends to partially correct the huge inequalities in access to care in the United States, in particular by lowering the price of drugs.

Medicare, a public health insurance system intended among others for those over 65, will for the first time be able to negotiate the prices of certain drugs directly with pharmaceutical companies, and thus obtain more competitive prices.

To finance these investments, the reform provides for the adoption of a minimum tax rate of 15% for all companies whose profits exceed one billion dollars.

This new tax aims to prevent certain large companies from using the tax loopholes which have allowed them to pay far less than the theoretical rate.

#photo1

According to estimates, this measure could generate more than 258 billion dollars in revenue for the US federal state over the next ten years.

Wounded by last year's chaotic withdrawal from Afghanistan, successive waves of Covid, inflation at its highest in 40 years, the Biden administration has had a difficult year.

Moreover, its efforts have often been hampered by a very narrow majority in both the House of Representatives and the Senate.

Polls predict Republicans will win a solid majority in the House of Representatives in November, or even win the Senate as well, which could make Joe Biden a figurehead president until the end of his term in 2024.

But as Republicans are mired in the scandal of Donald Trump's recklessness over classified "top secret" documents moved to his personal Mar-a-Lago residence, where the FBI had to collect them this week, Joe Biden has had success in recent weeks.

At the end of June, the 79-year-old Democratic president signed into law a law regulating firearms, the most important in nearly 30 years.

And at the beginning of August, he released $52 billion in subsidies to relaunch the production of semiconductors in the United States, as well as signed a law aimed at improving the care of veterans exposed to toxic fumes.

"I know there are those today who have a dark and desperate view of our country. I don't," he said on Tuesday.

Climate and health care reform, which all Republicans voted against, shows that "Americans have won and the lobby groups have lost," he added.

"This is the choice before us: We can protect the powerful or we can have the courage to build a future that offers opportunity for all. This is the America I believe in."

© 2022 AFP