By Tashi McQueen,
Report For America Corps Member,
AFRO Political Writer
On Aug. 16, President Biden officially signed into law the Inflation Reduction Act, which contains policy on deficit reduction, climate change, lower health care costs and better jobs.
“I’m about to sign the Inflation Reduction Act into law, one of the most significant laws in our history,” said Biden at the signing of H.R. 5376.
The bill was entirely passed on partisan lines with Vice President Kamala Harris being the one vote to break the 50-50 tie in the Senate on Aug. 7.
The House passed the bill on Aug. 12 sending it to Biden’s desk.
“The Inflation Reduction Act proves what we know is possible – that we can make life better for everyday Americans without asking those who have already paid their fair share to pay even more,” said Washington, D.C. Mayor Muriel Bowser, in a statement on the act. “The Biden-Harris Administration has made this a historic year for the American people and sent a resounding message that we don’t need to choose between protecting our planet and giving more people a fair shot – we can and will do both.”
Key points from the Inflation act include:
Climate Change
The Inflation Act includes a credit reduction extension and modification of energy credit, a further extension for “certain energy property” and a zero-emission nuclear power production credit for any taxable year.
The bill calls to action an alternative fuel and low-emission aviation technology program of which will create more jobs and develop supply chain partnerships throughout the U.S.
The committee on environment and public works added clean heavy-duty vehicles to provide more jobs along with other benefits.
Prescription Costs
The cost of medication can also be reduced or waived by the Secretary of Health and Human Services if there are severe shortages and “supply chain disruptions” on drugs. Prescription drugs have an out-of-pocket cap for Medicare beneficiaries. There are adjusted inflation payments plans for drugs per calendar quarter.
The act also requires drug producers to issue rebates or partial refunds in response to inflation.
Affordable care act subsidies are extended through 2025 with adjustments and expansions of the premium tax credit, according to the bill.
Big budget items
Funding was given to the Department of Energy to implement the advanced industrial facilities deployment program. This has the potential to accelerate the reduction and elimination of greenhouse gas emissions at industrial facilities according to the official document.
A total of $600 million is reserved for the Committee on Environment and Public Works for the creation of clean heavy duty vehicles, $3,181,500,000 remains available for taxpayer services, with $3 billion for the funding of Medicare and Medicaid services.
“If the definition of insanity is doing the same thing and expecting different results, then spending more money and increasing taxes to reduce inflation meets that definition,” said Sen. Mike Lee (R-UT) in a statement his office recently released.
“The Inflation Reduction Act is going to dramatically improve the lives of everyday Americans,” said Rep. Hakeem Jeffries (D-NY). “We are putting people over politics, fighting to lower costs for safer communities and better-paying jobs.”
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