Dear friend,
I hope you are enjoying the weather in Milwaukee this week! As you probably saw, this week, President Biden signed the Inflation Reduction Act into law. This legislation will lower health care costs, cut the price of prescription drugs, make historic investments in clean energy, create jobs, while ensuring the wealthy pay their fair share in taxes. You might be wondering...what’s exactly in this legislation and how will it benefit you? That’s why I broke down key measures included in this legislation below.
What’s in this bill for you?
Extends ACA Premium Tax Credits
The American Rescue Plan (ARP), Democrats’ COVID-19 relief package, included tax credits that lowered the cost of premiums, making health care more affordable than ever on the ACA market. This legislation will secure health care for an estimated 43,000 Wisconsin residents. The Inflation Reduction Act extends cost-saving ARP tax credits for three years, so you can continue saving money on your health care.
Allows Medicare to Negotiate the Price of Prescription Drugs
Starting in 2026, Medicare will be able to negotiate the price of some of the costliest drugs that our seniors depend on. I, along with my Democratic colleagues, have fought to make this proposal a reality, so more Americans can access affordable, life-saving medicine.
Lowers the Cost of Insulin for Seniors and Lower the Price of Critical Medicine
There are around 59,000 Wisconsinites who are Medicare patients and use insulin. Thanks to the Inflation Reduction Act, their monthly out-of-pocket costs will be capped at $35. Out-of-pocket drug costs for Medicare beneficiaries will also be capped at $2,000 for part-D drugs with an estimated 894,000 residents benefiting from this new measure. Democrats are making health care more affordable and building on this long-standing commitment.
However, I am disappointed that Senate Republicans stripped a provision out of this bill that would have applied the $35 insulin out-of-pocket cap to those with private insurance.
Makes Clean Energy More Affordable for You
Energy efficient air conditioners, water heaters and furnaces will be more affordable for American households. Families will be able to save up to 30% using tax credits on these items.
You can also receive a direct rebate when purchasing energy efficient appliances, ovens and stoves, which can lower your energy bill by $350 or more. In total, you can save up to $1,000 in energy costs each year! I am also proud that my tax credit for homeowners who get home energy audits was included in the Inflation Reduction Act.
This legislation also secures a tax credit of up to $4,000 for lower-and-middle-income Americans who purchase used clean energy vehicles and up to $7,500 for those who purchase new clean energy vehicles.
Creates Good-Paying Jobs
The Inflation Reduction will create jobs here in America, providing production and investment tax credits to encourage the production of electric vehicles, solar panels, batteries, critical minerals processing, and wind turbines in the U.S. The bill also provides grants for U.S. manufacturing facilities to make modifications to produce clean energy vehicles, so those jobs can stay in local communities. The Inflation Reduction Act includes $300 billion in loans and loan guarantees to support clean energy infrastructure, advanced technologies, and transmission projects in American, including tribal communities - a key job creating measure.
Supports Small Businesses
Small businesses can also benefit from switching to clean energy options. This bill offers them a tax credit to cover 30% of the expenses for changing to solar energy and a $1 per square foot deduction for high energy efficiency improvements.
Promotes Equity in Climate Action
Vulnerable communities will disproportionately feel the impact of climate change, which is why this bill includes $3 billion in funds to support community-led projects that address these inequities. The Inflation Reduction Act also includes $3 billion for grants that promote safety, accessible transportation including bike and pedestrian projects, and takes steps to reconnect neighborhoods that were separated by highway or other transportation projects .
The bill includes a $27 billion Greenhouse Gas Reduction Fund that will support low-cost financing for clean energy projects. At least 40% of this funding must be invested in low-income and disadvantaged communities to support projects such as roof-top solar power, clean transit, and smart grid investments that can increase resiliency and reliability.
Builds a Fairer Tax System
For years, the IRS has been short staffed and lacked the funding to meet the IRS’s real needs. Staffing levels in the last decade have been reduced by approximately 20 percent. These challenges have made it harder for average Americans to get help from the IRS. The lack of staff and funding has also made it easier for billionaires and large corporations to dodge paying their taxes for years. Unlike honest, hard-working middle class families paying their fair share, the top 1% is estimated to not pay $160 billion in owed taxes each year, about 28% of all taxes owed but not paid.
The Inflation Reduction Act includes funding to hire much-needed staff to better assist you. These staffers will also ensure that the wealthy and big corporations finally pay their fair share. This bill also applies a 15 percent corporate minimum tax to companies with $1 billion or more in profit who pay less than 15 percent in taxes. No family making $400,000 or less will see any increase in their federal income taxes.
My Office is Here to Help
As always, I am here to help. If you need help with a federal matter, please don’t hesitate to call my district office at 414-297-1140.
Your friend,
Gwen
