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    Inflation Act Passed By Congress, What Does It Mean

    Democrats finally strike a deal in Inflation act. The reduction plan will invest in making health care and prescription drugs more affordable in effort to fight climate change and taxing wealthy corporations.

    $80 billion of the funds support underfunded IRS. The plan also allows Medicare to negotiate the price of certain prescription drugs. This potentially brings down the price beneficiaries would pay for their medications.

    Corporations with at least $1 billion in income will have a new tax rate of 15%. However, Taxes on individuals and households won’t be increased. The proposed legislation closes the tax rate gap of private equity funds from paying lower tax rates. The Inflation Act also includes numerous investments in climate protection, including tax rebates and credits for households to offset energy costs.

    The Senate passed the bill on Sunday. The House is expected to take up the bill by Friday, prior to President Biden signing it.

    The plan raises raise over $700 billion in government revenue over 10 years and spend over $430 billion to reduce carbon emissions. As well as extend subsidies for health insurance under the Affordable Care Act. Additional funds will reduce affordable care deficit.

    Senate Majority Leader Chuck Schumer, D-N.Y., said the move is “the boldest climate package in U.S. history”.

    “To those of you who have lost faith that Congress can do big things, this bill is for you,” he said.

    President Biden spoke out. “I ran for President promising to make government work for working families again, and that is what this bill does – period,” Biden said in a statement issued by the White House after the vote that thanked Democrats for staying unified. “It required many compromises. Doing important things almost always does.”

    However, the bill may fall short of bringing immediate price relief to consumers. Nevertheless, land conservatives say the Inflation Reduction Act is a “breakthrough” on climate policy.

    “If passed, it would be the most important climate bill in history by a huge margin”.

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