US Lawmakers Approve The Inflation Reduction Act
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The US House of Representatives passed the Inflation Reduction Act on August 12, 2022. The comprehensive legislation, approved by the Senate on August 8, 2022, will be signed into law by President Joe Biden later this week. It is designed to lower health care and energy costs, combat climate change, and increase taxes on large corporations. Major provisions of the bill include:
Climate Change
A bulk of the $430 billion in new spending — $369 billion — will be used to fight climate change and boost the use of clean energy. More than $60 billion will be used to build clean energy sources, such as wind turbines. Funds have also been set aside to encourage auto manufacturers to start or transition to electric vehicle production. US consumers will receive a tax credit of up to $7500 for purchasing an electric vehicle and rebates for installing solar roofs or switching to energy-efficient appliances. The bill's authors believe the combined measures will help decrease US greenhouse gas emissions by 40 percent by 2030.
Health Care Costs
For the first time, Medicare — the health insurance plan available to Americans over the age of 65— will be able to directly negotiate the price of the most expensive drugs with drugmakers. Starting in 2025, Medicare recipients will have to pay no more than $2000 annually for prescriptions. The law also limits the price of insulin — used to control blood sugar in people with type 1 diabetes — to $35 per month for those on Medicare. Health coverage benefits provided under the Affordable Care Act will also be extended through 2025.
Taxation Changes
Companies with over $1 billion in annual profits must pay at least 15 percent in taxes. Those that decide to buy back their shares will be assessed a special 1 percent tax. Stock buybacks, which reduce the number of shares available in the public market, are a popular tactic to create value for existing shareholders. The legislation also allocates much-needed funds for the Internal Revenue Service to enhance tax collection measures and pursue tax evaders.
The tax measures are expected to generate up to $300 billion in annual revenues. US officials believe the funds could substantially reduce the fiscal budget deficit — the difference between what the federal government spends and what it collects — which was $211 billion as of July 2022. Some analysts believe reducing the deficit will help lower consumer prices and curb inflation.
Resources: CNN.com, NPR.org, CBSnews.com, wri.org
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34 Comments
boba_addictionabout 2 years# save the environment!
summer_beachabout 2 yearsI don't think this is right. The rich people worked hard to get there money. This is sad.😢- adara712about 2 yearsAgreed, and this is the exact reason why socialism is bad. People might say that it won't affect the rich too much, but it isn't morally right to deprive money of hard workers. Plus, we benefit a lot from the rich.
nrosgoodabout 2 yearsI disagree, mainly inharit money and at most $1,000 is given to the poor all they do is buy mansions and fancy cars they don't help as at all.
soft_princessabout 2 yearsyay!
iheartpuppiesabout 2 yearsI like the idea of stopping climate change, but I don't think its that big of a deal. When dinosaurs were around, everything was hot. Then, earth started to cool down and it became freezing. I think we are currently just in the stage of earth sifting climates again, for these can take thousands of years, and won't happen fast. For this reson , I don't think we need to worry.
smiles897about 2 yearsAgreed its natural God knows what he's doing let just ride it out.
adroit_avimimusabout 2 yearsThese and many more impacts are happening and will become gradually worse as we know it. Climate change DOES matter, and even if we are shifting to a completely other climate, it's all happening too fast in some places for some life to adapt, killing off those who can't evolve, including us. We just need to understand how important this is for both global wildlife and the humans.- smiles897about 2 yearsI don't think so
- adroit_avimimusabout 2 yearsTrue, but I disagree. Dinosaurs were better equipped for days of rain or even days of droughts. It was just part of their development and evolution. However, in modern times, climate change is indeed changing the climate of our planet. For example, heat is one of the most deadly weather phenomena. As ocean temperatures drastically rise, hurricanes are getting stronger and wetter, which can cause direct and indirect deaths. Dry conditions lead to more wildfires, which bring many health risks. Higher incidences of flooding can lead to the spread of waterborne diseases, injuries, and chemical hazards. As geographic ranges of mosquitoes and ticks expand, they can carry diseases to new locations. And it's not just us. The Arctic is one of the ecosystems most vulnerable to the effects of climate change, as it is warming at least twice the rate of the global average and melting land ice sheets and glaciers contribute dramaticallyoffsite link to sea level rise around the globe.
- adara712about 2 yearsBut, see, we've become too reliant on fossils fuels and electricity now that if we try to convert to renewable energy, it would be a bit hard to survive now that a lot of things rely on technology and such, so
- smiles897about 2 yearsWhere I live last year at this time it was 100 degrees Fahrenheit now its 80 this year #theclimateiscooling #theworldisfine
- iheartpuppiesabout 2 yearsI see what you are saying here. While I'm still keeping my view (I'm not convinced easily) I've got to say, your brave to prove your point.
- adroit_avimimusabout 2 yearsOf course!
- summer_beachabout 2 yearsI didn't think about that. I agree!!!
- iheartpuppiesabout 2 yearsI think its a good idea, and it seams pretty great, but I don't like the taxing the rich part. They earned that money through hard work and most of them give it away constantly to those who need it.
dream_beyondabout 2 yearsFinally!!!
alpha14about 2 yearsThat is so amazing people are making good decisions and putting it to work! I love that.😁😁😁😁😁- adroit_avimimusabout 2 yearsWow! Everything that has been crucially needed for quite some time now is being put into action in this bill, which can lower health care and energy costs, combat climate change, and increase taxes on large corporations and the super-rich! I'm mostly excited about the measures we are finally taking to create and use clean energy that doesn't harm the environment! I just hope that it's not too late to fix our mistakes... but WE ARE TAKING ACTION TO MAKE OUR COUNTRY BETTER, FOR BOTH PEOPLE AND WILDLIFE!! ❤️ 🌏
- smiles897about 2 yearsYou know there are cheaper ways to do this using radiation still is good semi clean cheap energy
deafgirlhistoryabout 2 yearsAgree!
unknown_user14about 2 yearsNicely said!
mathrulesabout 2 yearsAmazing. I’m so thankful
sophiagrace12about 2 yearsThis is something that has needed to happen for a while now. Im so glad that the Inflation Reduction Act has been approved.