The Inflation Reduction Act of 2022 Will Protect the Environment, Allow Medicare to Negotiate Drug Prices, and Close Tax Loopholes for Corporations
By MUUSJN on Wednesday, August 10th, 2022
Thank Michigan Senators for Their Vote
Sen. Gary Peters: 1-202-224-6221 & Sen. Debbie Stabenow: 1-202-224-4822
BACKGROUND
Shortly after 3 p.m. on Sunday, August 7th, the U.S. Senate voted 50 – 50 to adopt the Inflation Reductive Act of 2022. Vice President Kamala Harris cast the tie breaking vote. Senator Joe Manchin (D – W.VA) and Senator Krysten Sinema (D – AZ), two outspoken opponents of comprehensive Build Back Better proposals that Michigan Unitarian Universalist Social Justice Network and other progressive organizations supported during 2021, negotiated to make this historic legislation work for them and many others. Now the bill will be voted on next Friday, August 12th in a special session of the U.S. House.
The bill (HR 5376) includes what Senator Chuck Schumer called the “greatest pro-climate legislation in history”. To pay for $430 billion in new spending in this package, the bill would generate $730 billion in new revenue by closing tax loopholes on wealthy individuals and establishing a 15% minimum tax on corporations.(At least 55 of the largest corporations paid NO FEDERAL CORPORATE TAXES during the most recent fiscal year.) Also, the bill would generate savings allowing Medicare to negotiate prices on a limited number of prescriptions that benefit older and disabled persons on Medicare.
The Senate was able to pass this legislation with only 50 votes due to a Senate “reconciliation” rule that required the legislation to address federal budget matters. After a two day weekend marathon of debate, the Inflation Reduction Act maintained most of its key provisions. Here’s are highlights of those benefits:
Health Care Benefits:
- The bill would limit out of pocket Medicare prescription costs to $2,000/year;
- For the first time, the government could negotiate Medicare drug prices but for just 10 and later for 20 higher priced drugs. Insulin was one of those prescriptions;
- Would extend federal private insurance subsidies for lower income persons covered by the Affordable Care Act for three more years;
- Would provide free vaccines coverage for senior citizens.
Environment, Climate Change and Clean Energy Benefits:
- Renew energy tax incentives, e.g., wind, solar, heat pumps, clean hydrogen, etc.;
- Electric vehicle rebates: $7,500 for new vehicles and $4.500 for used EV purchases;
- $60 billion for clean energy manufacturing. Reportedly, green jobs for Senator Manchin’s state of West Virginia helped persuade him to support this bill;
- $60 billion for environmental justice, sending more investments to communities with low income communities that have been most affected by environmental pollution;
- Significant wins for the oil and gas industry, thanks to Sen. Manchin;
- A $27 billion “Green Bank” program would help deploy clean energy technology, especially in disadvantaged communities.
CALL OUR TWO SENATORS AND SAY: THANK YOU!
- Thank them for voting YES to adopt the “Inflation Reduction Plan of 2022”; and
- Tell them: More reforms are needed and can be paid for by closing other tax loopholes.
Category: News |