"The promise of America is real": Biden and Democrats tout new climate, tax and health care law

Washington — President Biden and Democratic lawmakers gathered Tuesday at the White House to celebrate passage of the Inflation Reduction Act, the new tax, climate and health care law that Democrats hope will help propel them to victory in November's midterm elections. 

The president, Senate Majority Leader Chuck Schumer, House Speaker Nancy Pelosi, and Vice President Kamala Harris addressed hundreds of people on the White House South Lawn to hail the enactment of the $750 billion piece of legislation. Mr. Biden signed the bill into law last month, but the White House waited until Congress returned from summer recess to hold a formal ceremony celebrating the law. 

"Today offers proof that the soul of America is vibrant, the future of America is bright, and the promise of America is real," Mr. Biden told an enthusiastic crowd. "It is real, it is real." 

But government data released Tuesday showed inflation in August barely slowed, and prices remain near a four-decade high. As the president spoke, major stock indices closed lower on news that inflation was higher than expected. High costs remain a top issue for voters heading into November.   

The House and Senate passed Inflation Reduction Act along party lines. The law provides $369 billion to fund energy and climate projects aimed at reducing carbon emissions by 40% in 2030, the most significant investment fight climate change in history. It also limits out-of-pocket drug expenses for seniors on Medicare, and allow Medicare to negotiate prescription drug prices. It sets a minimum 15% corporate tax rate for most large companies and provides $80 billion in funding to the IRS, allowing the agency to hire thousands of agents and revamp decades-old technological systems. 

"The days of companies paying zero in taxes is over, I promise you," Mr. Biden said. 

Schumer made a point in his remarks to contrast Democrats' actions with those of "MAGA Republicans," a characterization the White House has been using. Schumer slammed some Republicans for introducing a national 15-week ban on most abortions Tuesday.

"What are the MAGA Republicans doing over in the Capitol today?" Schumer said in front of the White House crow. "Introducing national bans on abortion. Just unbelievable."

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The Inflation Reduction Act came about after months of internal Democratic deliberations, after Sen. Joe Manchin pushed back against earlier, much larger proposals from progressives. The law's prospects seemed on the brink of failure until Manchin reached an agreement with Schumer this summer. 

"It's been a long process, but the House Democratic caucus stayed the course, worked incredibly hard, and made this moment possible," Schumer said. "And finally, I want to thank President Biden. We would never, never have gotten the Inflation Reduction Act done without his steady hand. For over a year-and-a-half, he dared us to dream big, pushed us to aim high, and urged us to never let go of our promise to the American people, especially on climate." 

But Republicans insist the new law won't address high inflation, arguing it will worsen the problem, if anything. 

"They could not look more out of touch if they tried," Senate Minority Leader Mitch McConnell said of Democrats' White House celebration.