WASHINGTON (MaceNews) – The following are major components of the Inflation Reduction Act passed 220-207 in the U.S. House Friday afternoon and now to be signed into law by President Biden:
- Raises estimated $750 blin in additional taxes over 10 years
- Reduces deficit by an estimated $235 bln over 10 years
- Spends $313 bln on new roads, bridges and other infrastructure
- Imposes 15% corporate minimum tax
- Imposes 1% tax on corporations’ stock buybacks raising estimated $74 bln
- Allows Medicare to impose price cuts of 10 older prescription drugs in 2026, 15 in 2027, 20 by 2029, saving seniors an estimated $288 bln over 10 years
- Caps out-of-pocket prescription drug prices at $2,000 for seniors starting in 2025
- Spends $80 bln to increase IRS enforcement, adding 87,000 staff, most of them support staff, not agents
- Limits losses businesses and individuals can deduct from taxes
- Spends $360 bln on a variety of tax credits intended to boost wind, solar and geothermal energy sources, subsidize large-scale battery storage for electric grids, limits EV subsidies to those made in North America and cuts subsidies for the most expensive models, extends $7,500 tax credit for other EVs payable at the dealership, and subsidizes investments in alternate energy sources
- Levies fees on drillers who flare methane while spending $27 bln on clean energy technologies
- Increases excise taxes on imported oil to pay for cleanup of industrial sites
- Extends through 2025 financial assistance for ACA enrollees
- Adds tax on coal mines to pay for now-permanent Black Lung benefits
- Caps the cost of insulin for those on Medicare at $35/month; no change for those with private insurance
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