The 2022 Inflation Reduction Act

The newest bill passed by the Biden Administration

More stories from by Isabella Baricelli

Seriously, BeReal
September 16, 2022

President Joe Biden signs The Inflation Reduction Act with Sen. Joe Manchin, Senate Majority Leader Charles Schumer, House Majority Whip James Clyburn, Rep. Frank Pallone and Rep. Kathy Catsor in the State Dining Room of the White House August 16, 2022 in Washington, D.C.

It is no secret that after the Ukraine War, America faced a huge spike in prices for common products like gasoline and groceries. This soaring inflation has not been seen in a while, but unfortunately, it continues to worsen for citizens. However, last week, Pres. Joe Biden signed the highly anticipated,“Inflation Reduction Act.”

This bill includes large investments in making necessities like access to healthcare and prescription drugs much more affordable, while also helping the environment and increasing taxes on corporations. Many say it will not have a significant impact on inflation because of its focus in combating climate change, but the new law is expected to slowly help relieve inflation through the years, in an effort to provide a more “long-term” impact.

Essentially, the act will not bring immediate price relief to consumers, but it will have other strong positive effects on the environment and on healthcare. Amongst the many provisions, the main ones include “Creation of a 15% corporate minimum tax rate, prescription drug price reform, IRS tax enforcement, Affordable Care Act (ACA) subsidy extension, and energy security and climate change investments,” according to Forbes Advisor.

Before he was elected, Pres. Biden was very passionate about helping the environment and fighting against climate change. With this act, electric car demand will increase, and soon there will be an emissions-free America.

Photo by Isabella Baricelli