Democratic lawmakers close in on climate, inflation deal – The Organization for World Peace

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Senate Democrats appear poised to adopt a major part of President Biden’s national agenda after it was announced that Joe Manchin of West Virginia and Kyrsten Sinema of Arizona will support the Cut Inflation Act. The legislation sits at a critical juncture in the global effort to fight climate change, containing the largest fiscal pledge ever made by the United States to address the global environmental crisis. Along with its climate measures, the act also expands Affordable Care Act grants and deficit reduction funding, policies funded by imposing a minimum corporate tax rate of 15% on businesses whose revenue is annual exceeds 1 billion US dollars.

Analysis released by Senate Majority Leader Chuck Schumer claimed the bill would cut US emissions by up to 40% by 2030. It includes $369 billion to fight climate change, with programs to incentivize the purchase and use of electric vehicles, $30 billion in tax credits for solar and wind power generation, and an additional $60 billion in tax credits for manufacturing electricity. ‘clean energy. Despite its name, economists remain divided on the bill’s likelihood of reducing inflation, with some suggesting it could instead slightly worsen the current economic crisis.

In a bipartisan letter obtained by Axios, five former Treasury secretaries who served under Presidents Clinton, Bush and Obama offered their strong support for the bill, writing “This legislation will help increase American competitiveness, solve our climate crisis, reduce costs for families, and fight inflation – and should be passed by Congress immediately.”

In a statement published on August 4, President Biden called the proposed deal “largest investment in history to fight climate change and strengthen energy security”, while identifying it as a “crucial step towards reducing inflation”. Speaking to nature, Dan Lashof of the World Resources Institute identified that the bill “will have a huge impact on innovation and cost reduction for a whole range of clean energy solutions that the world needs to meet its climate goals”.

In a message posted on Twitter, former vice president and climate activist Al Gore wrote: “The Inflation Reduction Act has the potential to be a historic turning point. It represents the largest investment in climate solutions [and] environmental justice in the history of the United States. Decades of tireless work by climate advocates across the country has led to this moment.” The broad consensus among leading Democratic figures and respected voices in business and academia underscores the importance of the law and its potential to revitalize global efforts to achieve climate goals.

The legislation comes amid a tumultuous time for the United States. Just last month, the Supreme Court ruled that the Environmental Protection Agency cannot use existing powers to phase out fossil fuels, significantly hampering the president’s ability to meet agreed-upon climate goals. Meanwhile, rapidly rising inflation and a corresponding increase in fuel prices in the United States have led to calls for expanding fossil fuel production.

The legislation is vital to international efforts to keep global temperature rise below 1.5 degrees. Its adoption, however, has a broader symbolic meaning, reframing the United States as a leader in environmental action while reflecting renewed hope in the capacity for meaningful and lasting climate action. The bill’s bifurcated focus on eliminating emissions while reducing inflation has the potential to improve the lives and livelihoods of people around the world, paving the way for a fuller economic recovery and more sustainable.

By remaining committed to environmental action, deficit reduction, and inflation management, the United States is positioning itself for a generation of more stable and prosperous development, both domestically and internationally.

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