Inflation Reduction Act in a Nutshell: What it Means for Americans
In a brief ceremony held last August, 2022. Pres. Biden signed into law the spending bill submitted by Congress captioned the “Inflation Reduction Act.” The bill aims to provide the health care needs of the American people amidst the financial struggles arising out of the post-pandemic economic recession and inflation. The Republicans though, see the bill’s passing as part of the Democratic Party’s ploy to ensure the American voters will vote for Democratic lawmakers in the upcoming November 2022 midterm elections.
Yet Pres Biden no longer played coy as he emphasized in his announcement that not a single Republican voted in favor of legislation that works toward helping ordinary Americans.
One of which included giving the US government the right to intervene in the pricing of drugs and medication in order to make essential drugs affordable for everyone. Pres. Biden disclosed that the pharmaceutical companies and others whom the President calls the “special interest group” have been lobbying against the passing of the bill. Since not a single Republican senator voted in favor of the bill, the President branded the members of the current minority party as supporters of the “special interest groups.”
Overview of the Inflation Reduction Act
While control on the price of prescription drugs and other medicines that have been in the market for 9 years, is the most significant law to have been enacted, the bill also included the following provisions:
1. Extension of The Affordable Care Act up to the year 2025, as it is due to expire at the end of 2022. This denotes that medical insurance policies subsidized by Medicare will continue to have lower premiums up to 2025.
2. Numerous incentives and tax credits are offered to offset the costs of investments in home improvements that aim to save energy; including the use of electric or other vehicles running on clean energy.
3. All for-profit corporate organizations that earn an annual income of at least one billion, are required to pay a minimum of 15% in income tax. Moreover, companies that buy back their shares of stock will be obligated to pay an Excise Tax of 1% on every share.
Most American consumers did not expect that such legislation would come to fruition. West Virginia Senator Joe Manchin, who served as the only obstacle that would destroy the bill, had to have something as a condition for his “yea” vote.
Nevertheless, even if the bill did not make it, Americans, particularly the Millennials, learned how to have control over their finances. The fintech that came around during the Obama administration helped straighten out the ills of the financial industry. Anyway, post-Trump and post-pandemic era, all’s well.
It’s a good thing that consumers today are using financial tools online like the ones offered by PersonalCapital. Others though prefer mobile apps that not only help in managing their budget. Apps like Money Patrol also offer tools and opportunities for investing on micro levels.