The Inflation Reduction Act will lower household expenses, address the environmental issue, lower the deficit, and ultimately demand fair share payments from the wealthiest corporations. With Congressional Democrats, President Biden has produced a historic piece of legislation that satisfies the needs of American families, prevents special interests, and expands the economy from the middle and the bottom up.
Here are some statistics demonstrating how the Inflation Reduction Act affects Americans:
Cost-cutting for Prescription Drugs
- Currently, Americans pay two to three times as much for prescription pharmaceuticals as foreigners do.
- The clause permitting Medicare to negotiate prescription medication costs could lower drug expenses for 5-7 million Medicare enrollees.
- Fifty million Medicare Part D users will be able to rest easy knowing that their annual pharmacy costs are limited to $2,000, directly benefiting around 1.4 million beneficiaries.
- An assurance that their insulin expenses will be restricted to $35 for a month’s supply will benefit the 3.3 million Medicare enrollees with diabetes.
Decreasing health care prices
- The average annual cost-savings for 13 million Americans on health insurance will remain at $800.
- Compared to before the ACA, 3 million more Americans will have health insurance.
- The historic bill will build on the 8% uninsured rate, which is at an all-time low.
Taking Special Interests to Account
- The pharmaceutical industry spent $187 million on lobbying in 2022.
- In 2021, pharmaceutical industries employed 1,600 lobbyists. Three times as many lawmakers as in Congress
- Democrats in Congress have been attempting to reduce the cost of prescription drugs by allowing Medicare to negotiate medication pricing for 33 years.
- Medicare has been prevented from negotiating prescription medicine prices for 19 years.
Decreasing energy prices
- Families that benefit from tax incentives for electric vehicles and clean energy will save more than $1,000 annually.
- Families can save at least $350 a year by purchasing heat pumps or other energy-efficient home appliances, thanks to $14,000 in direct consumer rebates.
- With a 30% tax credit, 7.5 million additional households will be able to put solar panels on their roofs, saving households $9,000 throughout the system or at least $300 annually.
- Families can save $950 annually thanks to tax credits of up to $7,500 for brand-new electric vehicles and $4,000 for old ones.
- Putting the country on track to achieve President Biden’s climate goals will result in every family spending $500 less on energy annually.
Development of Renewable Clean energy industrialization
- By 2030, significantly more clean energy will be used to power homes, companies, and communities, including:
- 950,000,000 solar panels
- 120 thousand windmills
- 2,300 battery plants for the grid
- Advance renewable energy initiatives at rural power cooperatives that serve 42 million people at a lower cost.
- Boost climate resilience and safeguard about 2 million acres of national forests.
- Creating millions of well-paying employment in America for the production of sustainable energy.
Limiting Negative Pollution
- One gigaton, or one billion metric tons, less greenhouse gas emissions in 2030 – ten times more climate impact than any other single piece of legislation ever passed.
- By 2030, saving up to 3,900 unnecessary deaths and up to 100,000 asthma attacks will be possible by implementing sustainable energy and reducing particle pollution from fossil fuels.
Increasing Fairness in the Tax Code
- Some of the biggest, most successful companies pay no federal income tax, or $0.
- The number of the biggest, wealthiest firms in America that avoided paying federal income taxes in 2020 is 55.
- The wealthiest 1% of earnings are thought to avoid $160 billion in taxes annually.
- The Inflation Reduction Act levies a 15% minimum corporate earnings tax on the biggest, most successful firms.
- According to the Congressional Budget Office, the Inflation Reduction Act will save $124 billion over ten years by collecting taxes already due from wealthy individuals and significant corporations.
- And there won’t be any tax increases for families earning less than $400,000 annually.
Decreasing the Deficit
- The deficit will be reduced by hundreds of billions of dollars thanks to the inflation act.
- After declining by more than $350 billion last year, the deficit is expected to decrease by over $1.5 trillion this year.
- A deficit reduction will contribute to the fight against inflation and sustain robust, stable economic growth, according to 126 top economists, including 7 Nobel Laureates, two former Treasury Secretaries, two former Fed Vice Chairs, and two former CEA Chairs.