Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.Va., have struck a deal to finalize legislative text of the Inflation Reduction Act of 2022 that will help address inflation, lower the cost of health care, combat the climate crisis and ensure that the biggest corporations and the wealthiest few pay their fair share of taxes.
The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.
The bill will also finally allow Medicare to negotiate for prescription drug prices and extend the Affordable Care Act subsidies for three years, through 2025.
“After many months of negotiations, we have finalized legislative text that will invest approximately $300 billion in Deficit Reduction and $369.75 billion in Energy Security and Climate Change programs over the next 10 years,” Schumer and Manchin said in a joint statement. “The investments will be fully paid for by closing tax loopholes on wealthy individuals and corporations.”
Under the Act, a 15 percent corporate minimum tax will be implemented, and IRS enforcement will be strengthened.
Additionally, the agreement calls for comprehensive Permitting reform legislation to be passed before the end of the fiscal year. Permitting reform is essential to unlocking domestic energy and transmission projects, which will lower costs for consumers and help the Biden administration meet its long-term emissions goals.
This agreement also honors President Joe Biden’s promise not to impose new taxes on families making less than $400,000 and no new taxes on small businesses.
House Speaker Nancy Pelosi said the legislative text will be sent to the Parliamentarian for review, and the full Senate will consider it next week.
Responding to the Congressional breakthrough, President Biden said, “With this agreement, we have a chance to make prescription drugs cheaper by allowing Medicare to negotiate lower prices and we can lower health insurance costs for 13 million Americans, by an average of $800 a year, for families covered under the Affordable Care Act.”
He thanked Senator Schumer and Senator Manchin for the extraordinary effort that it took to reach this result.
If enacted, this legislation will be historic, Biden said. He urged the Senate to move on this bill as soon as possible, and the House to follow as well.
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