The Inflation Reduction Act

President Biden recently signed the Inflation reduction act – a monumental bill that involves spending about $750 billion in spending of 10 years, and which tackles climate change meanwhile decreasing taxes by billions.

The Inflation Reduction Act signed on August,16, 2022, is one of “the most important laws of history” as well as making it one of the biggest climate investments in worldwide history. The bill reduces carbon emissions by 40 percent by the year 2030. According to the White House, this law will also lower prescription drug costs, health care costs, and energy costs meanwhile offering millions of jobs for citizens. Even though the Inflation Reduction Act is targeting many worldwide issues such as resolving expensive healthcare or improving the environment, it also means a huge change in taxes for U.S citizens.

The law plans to change America by reduces American’s healthcare cost, which is two to three times of what citizens of other countries pay. Even better, Medicare patients with diabetes will benefit from a guarantee that their insulin costs will be only $35 for a month’s supply. With this law, 13 million Americans will pay $800 less for health care, and 3 million Americans will have health insurance that they did have prior to the signing of the law.

Additionally, the bill covers clean energy. This law helps citizens by finding alternate ways to get energy, like solar panels and 7.5 million more families will be able install solar on their roofs with a 30% tax credit, saving families $9,000 over the life of the system or at least $300 per year. More households, businesses, and buildings will include 950 paying solar panels. As well as 12,000 wind turbines, and 2.3k grid scale battery plants by 2030. Also planning to save 2 million acres of national forests by strengthening climate resilience. This bill also creates new jobs for Americans that can also benefit in saving the planet.

As for taxes, big, wealthy corporations currently paying $0 in federal income taxes, this act will guarantee billionaires, millionaires, and corporations pay their taxes instead of evading them. until the Inflation Reduction Act, 55 companies got away without paying a single cent in taxes in 2020. Now, no family that makes less than 400,000 will see their taxes go up a penny more.