Denise Ochigbo
Oct 2, 20222 min
President Joe Biden signed the inflation reduction act 2022, which aimed to reduce the deficit and control inflation in the states. The inflation reduction act involves reducing medical drug prices, investing in energy production domestically, promoting clean energy, and reducing the deficit to curb inflation throughout the country.
The act was a great achievement for democrats as they had a difficult time with rising taxes and inflation.
How the Inflation Reduction Act Can Impact You
The new inflation act can help you socially and economically with large investments in the new bill to encounter climate change and aid in your healthcare budget.
1. Taxing the Rich and Corporations
Rich individuals and corporations can afford the tax increase and can easily pay them, so the government plans to increase the taxes on them. The inflation reduction act is also looking to facilitate the working class community that can hardly afford basic necessities. Taxing the rich can help the economy flourish.
The economy has allowed the rich to grow richer on every occasion, which make it their responsibility to support tax programs and pay their fair share. A cumulative tax system can help with inconsistency in wealth and the discrepancies in living standards for most people.
2. Reforms in Prescription Drug Prices
The Inflation Reduction Act has major changes for healthcare prescription prices, discouraging pharmaceutical companies from increasing them. Medicare can now negotiate certain drug prices and bring down the price for beneficiaries.
3. Imposition of IRS Tax
The Inflation Reduction Act has invested $80 billion in the tax agency for over a decade. The IRS has been under the weather due to insufficient funding, and it was affecting it to perform its duties. It will help in funding IRS to deliver its duties efficiently.
4. Extension in Subsidies
The extension in subsidies through the Affordable Care Act subsidy extension has helped Americans with their health insurance which was about to expire if it was not extended. The federal government has subsidized medical insurance to reduce the premiums.
5. Investment in Climate Change
The Inflation Reduction Act invests largely to protect the climate and minimize the impact of climate change. The investments will cover clean energy production and help reduce carbon and greenhouse gas emissions.
The legislation also offsets household energy costs and promotes clean energy to households. It will help the world transition from industries that use fossil fuels to generate energy to green technologies that can save the environment.
Conclusion
The inflation Reduction Act is a great step to curb inflation and help the poorest in the country. It is a great initiative for climate change and controlling carbon and greenhouse gas emissions. The bill takes care of healthcare, decreases the prices of prescription drugs, and makes them more affordable through large investments by legislation. If you need more information on Inflation Reduction Act or want help with your business’ financial planning, sign up for our platinum business financial coaching programming or for personal finance help sign up for our personal financial programming today.