A breakdown of the new Inflation Reduction Act, 8/16/22
The Inflation Reduction Act covers far more than inflation. It offers funds to attack the destructive Climate Changes, that the beleaguered public has been begging for over the past decade. It will spend or “invest” $437 billion, but will bring in $737 billion in tax revenues. It will also bring our deficient down $300 billion. It was passed by all Democrats, and no Republican yes votes. President Biden signed it into effect August 16, 2022. The reforms will take place over the next few years.
Tackles Climate Change
$369 billion would be invested in energy and climate reform. This is the largest federal clean energy investment in U.S. history. It will reduce carbon emissions by 40% by year 2030.
==$60 billion for growing renewable energy infrastructure in manufacturing like solar panels and wind turbines. Colorado is already a leader in this market, and it will add thousands of jobs, and grow the economy.
==several tax credits for individuals: electric vehicles credits, and making homes more energy efficient. This will benefit not only The Environment! but also Individuals. (There are many rules and regulations defining how this will work)
==lower greenhouse gas emissions by 40%, based on 2005 levels, by the end of the decade.
Medical: Lower cost of prescription drugs / insulin / set limits / health insurance
The public has long asked the United States to allow the negotiation of drug prices.
Drugs: This historic bill allows the federal health secretary to negotiate the prices of approximately 100 expensive drugs over the next decade for Medicare. Requires drug companies to rebate back price increases higher than inflation.
ACA/Health Insurance: Saves the average enrollee $800/year in the ACA marketplace
Medicare: Cap at $35 per month the price of insulin (2023)
Medicare: Cap out of pocket prescription drugs to $4,000 in 2024, and $2,000 in 2025. (Medicare Part D)
Free Vaccines continue in 2023.
Tax Reform; revenue raised
These benefits will be paid for by Tax Reforms. This will not affect families earning $400,000 or less.
The legislation creates a 15% minimum tax for corporations making $1 billion or more in income, bringing in between $222 and $300 billion in revenue.
It also increases the number of IRS agents who will go after those who have been using tax loopholes to not pay their fair share of taxes. Includes, a 1% fee on stock buybacks. (this alone will bring in approximately $74 billion.)
SEE THIS PAGE FOR A WHITE HOUSE BREAKDOWN AND EXPLANATION OF WHY THE BILL WAS NEEDED, AND WHERE FUNDS WILL GO.
NOTE: These figures were taken from an 8/11/22 summary of the Bill, issued by the Democratic Party. Please do your own research to confirm items, or research changes. The Lyons Recorder or its staff are not responsible for any inaccuracies.
Inflation Reduction Act Calculator
The team at EcoWatch created an incentives calculator to help consumers understand what rebates and tax credits they qualify for under the IRA. You can check it out below: https://www.ecowatch.com/solar/ev-appliance-solar-tax-credit-calculator
