President Joe Biden signed the Inflation Reduction Act into law today after the bill passed the Senate less than a week earlier thanks to Vice President Kamala Harris casting the vote that broke the 50-50 tie.
The White House said in a press release that the legislation will lower prescription drug costs, health care costs, and energy costs to combat inflation…(White House)
- Lower drug costs: The Inflation Reduction Act will help close the gap in access to medication by improving prescription drug coverage and lowering drug prices in Medicare.”
- Lower healthcare costs: “The Inflation Reduction Act locks in lower monthly premiums – 80 percent of uninsured Latinos had access to a plan for $50 or less each month and 69 percent could find a plan for $0 a month in 2021.“
- Lower energy costs: “The Inflation Reduction Act will make it more affordable for families to purchase energy efficient and electric appliances when they need to replace everyday home appliances and equipment. And, these appliances will save families money on their utility bills in the long run.
The White House also claims that the subsidies for green energy will create jobs in those industries. However, the Tax Foundation argues the bill will reduce long-run economic output by about 0.2 percent and eliminate about 29,000 full-time equivalent jobs in the United States. It would also reduce average after-tax incomes for taxpayers across every income quintile over the long run.