Hinds County Emergency Management personnel wade through flood waters in northeast Jackson, Miss. Image via The Hill
This article was originally published on Common Edge.
The passage of the Biden Administration’s climate change package, the so-called “Inflation Reduction Act,” has predictably split along partisan lines, with Republicans characterizing the bill as an act of reckless government spending, certain to raise taxes and fuel further inflation. But does this act really represent reckless spending? The legislation authorizes $430 billion in spending, the bulk of which—more than $300 billion—is earmarked for tax credits; other spending, and initiatives aimed at stimulating the clean energy economy; and reducing carbon emissions. (The bill also allows Medicare to negotiate prices with drug companies for certain expensive drugs.) The bill is funded in part by a 15% minimum tax on large corporations and an excise tax on companies that repurchase shares of their own stock. Given the scope of the problem, and the escalating future costs of climate inaction, this legislation is an exceedingly modest, but very necessary, first step.