The Inflation Reduction Act Will Lower Costs, Reduce Inflation, Create Jobs, And Make Historic Investments In Fighting Climate Change

August 12, 2022

CBS News: Inflation Reduction Act Could Be "Game-Changing" For Millions Of U.S. Seniors 

USA Today:  Here's How The Inflation Reduction Act Could Save Consumers Money And Protect The Planet 

NY Times: Consumers Will Benefit From Lower Utility Bills And Cheaper Home Upgrades, Energy Experts Say

THE INFLATION REDUCTION ACT BRINGS “GAME-CHANGING” SAVINGS TO MILLIONS OF AMERICANS

NY Times: For Older Americans, Health Bill Will Bring Savings and ‘Peace of Mind.’ “The Senate bill, which the House is expected to pass on Friday, then send to President Biden’s desk, could save many Medicare beneficiaries hundreds, if not thousands of dollars a year. Its best-known provision would empower Medicare to negotiate prices with drug makers with the goal of driving down costs. — a move the pharmaceutical industry has fought for years, and one that experts said would help lower costs for beneficiaries.” [NY Times, 8/10/22]

CBS News: Inflation Reduction Act Could Be "Game-Changing" For Millions Of U.S. Seniors. “The Inflation Reduction Act represents the most important effort in decades to reform how drug prices are set in the U.S., experts say. ‘This is going to be game-changing,’ Rena Conti, an associate professor at Boston University's Questrom School of Business who studies drug pricing, said of the bill.” [CBS News, 8/9/22]

CNBC: 1 In 5 Insulin Users On Medicare Has ‘Catastrophic’ Drug Spending, Yale Finds. The Inflation Reduction Act May Help. “The Inflation Reduction Act just passed by the Senate will cap insulin at $35 per month for Medicare beneficiaries. The cost of insulin can break diabetes patients financially. Of Medicare beneficiaries who use insulin, 1 in 5 reach catastrophic spending, according to Baylee Bakkila, a lead researcher on the Yale School of Medicine’s team focused on this issue.” [CNBC, 8/9/22]

The Guardian: Black And Latino Seniors To See Exorbitant Prescription Drug Costs Drop Thanks To New US Bill. “Millions of older American could benefit from provisions in the new climate and healthcare spending package that lower prescription drug costs. For Black and Latino seniors, who disproportionately suffer from chronic diseases and struggle with high costs, the package, if passed and signed by Joe Biden, could be especially life-changing.” [The Guardian, 8/12/2022]

Reuters: Analysis: U.S. Move To Negotiate Drug Prices A Rare Defeat For Big Pharma. “Big Pharma spent more than any other industry to lobby Congress and federal agencies this year, a Reuters analysis shows, but is still on course for a major defeat by failing to stop a bill that allows the government to negotiate prices on select drugs. Despite the pharmaceutical industry spending at least $142 million on lobbying efforts, the $430 billion Inflation Reduction Act to change climate, health, and tax policies cleared its largest hurdle last week when Democratic lawmakers passed it in the Senate.[Reuters, 8/12/22]

USA Today: 'Significant Victory': How The Inflation Reduction Act Would Save Medicare Drug Costs. “Seniors and patient groups have long pursued a seemingly improbable goal of granting Medicare the authority to negotiate prescription drug prices. Legislation passed by the U.S. Senate on Sunday and advanced to the House would finally allow the federal health program for older Americans to seek lower prescription drug prices at the bargaining table. The legislation also limits out-of-pocket costs of Medicare recipients at $2,000 per year.” [USA Today, 8/11/22]

Vox: What Could The Inflation Reduction Act Mean For You? “The Senate on Sunday passed the Inflation Reduction Act — a bill meant to provide key funding for clean energy investments and measures to reduce prescription drug costs, after an hours-long vote-a-rama. In addition to cementing Medicare’s new negotiating power, the bill also holds insurance subsidies for the Affordable Care Act through 2025, making health insurance more affordable for the millions of people who are insured through the health care marketplace. [Vox, 8/7/22]

THE INFLATION REDUCTION ACT WILL MEAN HISTORIC ACTION TO CREATE JOBS AND FIGHT THE CLIMATE CRISIS

TIME: The Inflation Reduction Act Is About to Jumpstart U.S. Climate Policy and Change the World. “Experts say the legislation will dramatically accelerate the decline in U.S. emissions, putting the country within reach of the Biden Administration’s goal of slashing emissions in half by 2030 when compared to 2005 levels. That goal serves as a barometer of how much climate change-generated pain and destruction the world can avoid, and sets a destination of sorts for all U.S. climate policy. The Inflation Reduction Act offers a framework for how the U.S. will tackle climate change in the eight years until that deadline and beyond.” [Time, 8/10/22]

NBC News: 5 Ways The Inflation Reduction Act Would Fight Climate Change. “More clean energy, less dirty energy, new punishments for methane leaks and billions of dollars for communities most in need of climate-related help — those are the provisions that have environmentalists celebrating what they see as a monumental step for U.S. climate action. Senate Democrats on Sunday passed a sweeping bill, known as the Inflation Reduction Act, that includes hundreds of billions of dollars to fight climate change.” [NBC News, 8/9/22]

USA Today:  Here's How The Inflation Reduction Act Could Save Consumers Money And Protect The Planet. “A new climate bill, if signed into law, could reduce domestic greenhouse gas emissions by approximately 40% below 2005 levels by 2030, according to multiple estimates. The Inflation Reduction Act of 2022, passed by the Senate on Sunday, would invest $369 billion to fight against climate change. The bill lowers the costs of sustainable energy technologies and energy-saving devices." [USA Today, 8/9/22]

Vox: The Senate Just Passed One Of The Biggest Bills To Fight Climate Change, Ever. “The bill contains $369 billion in funding for clean energy and electric vehicle tax breaks, domestic manufacturing of batteries and solar panels, and pollution reduction. It is the single most important step the US has ever taken to combat the climate crisis. And arguably, it’s one of the single biggest investments ever made on climate in the world.” [Vox, 8/7/22]

Politico: Historic Climate Bill To Supercharge Clean Energy Industry: “Senate Democrats delivered a dramatic win for President Joe Biden’s effort to fight climate change on Sunday, passing a bill that will devote hundreds of billions of dollars to clean energy sources and speed the U.S. transition away from fossil fuels. The Inflation Reduction Act, which had appeared to be dead just weeks ago and now heads to the House of Representatives, would accelerate U.S. emission cuts and put the country on a path to reduce greenhouse gases by 40 percent below 2005 levels by 2030, significantly narrowing the gap with the goal Biden set under the Paris climate agreement to cut that pollution by at least half by that date.” [Politico, 8/7/22]

Washington Post: The Inflation Reduction Act Could Push Climate Change Tech Into The Future. “Billions in tax credits to make electric vehicles cheaper. Hefty fees for high-polluting gas and oil companies. Funding to speed the production of solar panels and wind turbines. Cash to create the country’s first ‘green bank.’ The Inflation Reduction Act, which passed the Senate on Sunday, would unlock roughly $369 billion to battle climate change — far less than what some lawmakers originally proposed, but it still marks the single largest investment in combating global warming in American history.” [Washington Post, 8/12/22]

THE INFLATION REDUCTION ACT WILL MEAN LOWER ENERGY BILLS

NY Times: Consumers Will Benefit From Lower Utility Bills And Cheaper Home Upgrades, Energy Experts Say. “The Inflation Reduction Act that was passed by the Senate on Sunday could lower electricity bills for consumers and the prices of things like rooftop solar panels, energy-efficient appliances and electric vehicles, Democrats and some energy experts said. Under the legislation, a home improvement credit for energy efficiency would allow households to deduct from their taxes up to 30 percent of the cost of upgrades like heat pumps and insulation.” [NY Times, 8/7/22]

NPR: 3 Ways The Inflation Reduction Act Would Pay You To Help Fight Climate Change. “Money in the Inflation Reduction Act would make it cheaper for Americans to curb their own climate-warming emissions. While most of the bill's climate benefits would come from incentivizing major shifts, such as building more wind and solar power, individual choices can add up when undertaken on a large scale. The first home benefit Americans would see is a tax credit for energy efficiency upgrades.” [NPR, 8/11/22]

Market Watch: Here’s How The Inflation Reduction Act’s Rebates And Tax Credits For Heat Pumps And Solar Can Lower Your Energy Bill. “It’s not the most stylish, or even most fulfilling, part of upgrading a home. But more energy-efficient heating, cooling, power and water usage can net savings that really adds up for household budgets and for doing right by the planet. Congressional action looks to return more incentives, mostly via tax credits and rebates, to the pockets of homeowners who opt for energy-efficient choices, replacing fossil-fuel furnaces, boilers, water heaters and stoves with high-efficiency electric options that can be powered by renewable energy.” [Market Watch, 8/9/22]

THE INFLATION REDUCTION ACT WILL CRACK DOWN ON WEALTHY TAX CHEATS – AND CUT TAXES FOR MIDDLE CLASS FAMILIES

Bloomberg: US Tax Bill Costs Corporations Nearly $300 Billion More, While Middle Class Pays Less. “Corporations will pay nearly $296 billion more in US federal taxes over the next decade, and middle-income households will see some tax cuts, under the tax-and-climate bill that is likely to become law in the coming days. Households earning less than $100,000 will see net tax cuts through 2025, largely due to an extension of subsidies for Affordable Care Act premiums.” [Bloomberg, 8/9/22]

CNN: Yellen Directs IRS Not To Use New Funding To Increase Chances Of Audits Of Americans Making Less Than $400,000. “Treasury Secretary Janet Yellen on Wednesday directed the Internal Revenue Service not to use any of the new funding allocated in the Democrats’ new health care and climate bill to increase the chances of Americans making less than $400,000 a year getting audited, according to a copy of the letter obtained exclusively by CNN.” [CNN, 8/10/22]

CBS News: The IRS Wants To Spend Billions On "Enforcement." Here's Who Is Most Likely To Get Audited. “Could middle-class taxpayers be targeted by the IRS?

Not likely, according to tax experts and officials at the IRS and Treasury. Most middle-class workers receive W-2s at tax time, or tax forms that show total compensation and the amount of federal, state, and other taxes withheld from your paycheck. This data is also reported to the IRS, which then checks whether tax filings match the amount reported by employers. It's difficult for people who receive W-2s to hide income, in other words.” [CBS News, 8/10/22]

CNBC: Reconciliation Bill Includes Nearly $80 Billion For IRS Including Enforcement, Audits: What That Means For Taxpayers. “Senate Democrats on Sunday passed their climate, health and tax package, including nearly $80 billion in funding for the IRS. Part of President Joe Biden’s agenda, the Inflation Reduction Act allocates $79.6 billion to the agency over the next 10 years. More than half of the money is meant for enforcement, with the IRS aiming to collect more from corporate and high-net-worth tax dodgers.” [CNBC, 8/8/22]

Washington Post: Hyperbolic GOP Claims About IRS Agents And Audits. “With a vote scheduled Friday in the House on the big spending package approved in the Senate, the GOP has focused its fire on provisions that would bolster the Internal Revenue Service with new funding to crack down on tax cheats. But these numbers are a misfire, lacking significant context.” [Washington Post, 8/11/22] 

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