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President Biden will return to the White House from his vacation in Kiawah Island, South Carolina, on Tuesday to sign the Inflation Reduction Act, a spending package that congressional Democrats pushed through via the budget reconciliation process.
The bill costs an estimated $437 billion, with $369 billion going toward investments in “Energy Security and Climate Change,” according to a summary by Senate Democrats. The legislation follows negotiations and cuts from a previous bill, the Build Back Better Act, which initially called for more than $3 trillion in spending and failed in the Senate.
“President Biden and Congressional Democrats have worked together to deliver a historic legislative achievement that defeats special interests, delivers for American families, and grows the economy from the bottom up and middle out,” the White House said in a fact sheet released Monday.
Democrats project that the legislation will reduce the deficit by bringing in $737 billion. This includes an estimated $124 billion from IRS tax enforcement, the projected result of hiring 87,000 new IRS agents who will ramp up audits.
The bill also imposes a 15% corporate minimum tax that the Joint Committee on Taxation predicts will raise $222 billion, and prescription drug pricing reform that the Senate estimates will bring in $265 billion.