On Friday, the House passed the Inflation Reduction Act, a historic bill to lower health care and energy costs, boost domestic production of clean energy and create a fairer tax system. The bill tackles two of the biggest drivers of increasing costs: health care and energy prices. By capping prescription drug prices and ramping up America’s clean energy industry, this bill will not only support seniors, it also will create a cleaner environment for future generations.
Specifically, the Inflation Reduction Act will:
- Allow Medicare to negotiate for lower drug prices for seniors.
- Create inflation caps for Medicare prescription drugs.
- Improve Medicare prescription benefits.
- Prevent a premium spike for Affordable Care Act enrollees.
- Invest $80 billion in the IRS to strengthen enforcement without increasing taxes on people making less than $400,000 a year.
- Impose a 15% minimum corporate tax on corporations with profits exceeding $1 billion.
- Reduce climate pollution by 40%.
- Provide tens of billions in energy investment and production tax credits.
- Include tens of billions in manufacturing tax credits.
- Support electric vehicle purchases by the Postal Service.
- Make major investments in communities and environmental justice.
- Fund the Department of Energy to make hundreds of billions of dollars of loans to upgrade energy and grid infrastructure.
- Enact clean energy tax incentives.
- Create nearly 1.5 million new jobs and spur economic growth concentrated in clean energy.
The Inflation Reduction Act is truly a game-changing bill that will help balance the scales by lifting up more workers and creating more opportunities for us to get ahead. It now headed to President Biden’s desk for his signature. Once it is law, the legislation will represent a significant victory for working families.
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