The Inflation Reduction Act of 2022 was introduced by Senators Schumer and Manchin after months of public and private negotiations. This bill does a number of things. It helps make prescription drugs more affordable while stopping Pharma’s price gouging. It gives middle-class families a break on healthcare premiums. It requires the biggest and most successful corporations to pay their fair share in taxes. And it creates jobs with historic public investment in manufacturing, energy security, and lower energy costs for working families—all while helping address the impacts of the climate crisis.
About the Bill
With Joe Biden’s signature yesterday, this progressive agenda has now become law. Among other things, it includes:
- Roughly 40% reduction in carbon emissions by 2030
- 6 million estimated jobs added over 10 years
- The authority for Medicare to negotiate some drug prices
- Continued savings on premiums for folks on the ACA marketplace
- Excise tax on stock buybacks
- 15% corporate minimum tax.
What It Will Do
This is undoubtedly progressive policy. It is the largest investment in climate infrastructure in our nation’s history and it will drastically lower health care costs for millions of Americans. Yes, the bill has problems and we are still far behind on achieving our climate goals. But, it is still our nation’s (and the world’s) largest ever investment in fighting climate change. And it does this all while reducing the federal deficit and cutting inflation.
Celebrate the Wins
Despite incredible Republican obstructionism, a needless giveaway to fossil fuel corporations, and Democratic leaders who showed more energy gas lighting progressives than fighting Joe Manchin, this is still an extraordinary accomplishment. So let’s take the wins when we see them and celebrate, as this is a great and surprising achievement.