Where Will the $740 Billion be Spent in the Democrats’ Big Bill Package? Climate Change, Health Care, and Deficit-Reduction Strategies

FILE – The U.S. Capitol in Washington is pictured on Friday, August 5, 2022. Democrats pushed their election-year economic package to Senate passage Sunday, Aug. 7, 2022, a compromise less ambitious than Biden’s original domestic vision but one that still meets party goals of slowing global warming, moderating pharmaceutical costs and taxing immense corporations. (AP Photo/Mariam Zuhaib, File)

Not as robust as the proposal President Joe Biden once envisioned to rebuild America’s public infrastructure and family support systems, the Democrats’ compromise of health care, climate change and deficit-reduction strategies is still a substantial undertaking.

 

The estimated $740 billion package — passed Sunday by the Senate and heading to the House — is full of party priorities. Those include capping prescription drug costs at $2,000 out of pocket for seniors, helping Americans pay for private health insurance and what Democrats are calling the most substantial investment in history to fight climate change, some $375 billion over the decade.

Almost half the money raised, $300 billion, will go toward paying down federal deficits.

It’s all paid for largely with new corporate taxes, including a 15% minimum tax on big corporations to ensure they don’t skip out on paying any taxes at all, as well as projected federal savings from lower Medicare drug costs.

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