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The US Senate has passed Joe Biden’s flagship economic package after a marathon overnight voting session that handed the president a major political victory just months before the midterm elections. The climate, tax and healthcare bill, known as the Inflation Reduction Act, passed by a margin of 51 to 50, with voting split along party lines and vice-president Kamala Harris casting the deciding vote in an evenly divided Senate. The bill still needs to pass the House of Representatives and be signed by the president before it becomes law, but its passage by the Senate marks the biggest in a string of recent wins for Biden as he aims to defend slim majorities in both chambers of Congress in November.
Earlier this summer, lawmakers voted through a bill providing new subsidies for US chip manufacturing and agreed on bipartisan gun control legislation following deadly shootings in Texas and New York. The Inflation Reduction Act includes some of the most significant climate change legislation enacted in the US, with $369bn dedicated to climate and clean energy programs. It also includes measures allowing the government to negotiate to lower prescription drug prices, a provision to apply a minimum 15 per cent tax on large corporations, and a new 1 per cent tax on share buybacks.
Source: Financial Times