The Inflation Reduction Act Of 2022

The Inflation Reduction Act of 2022 is a bill that was put forth for consideration by the 117th United States Congress in July 2022. It aims to reduce inflation by cutting the deficit, reducing the cost of prescription drugs, enforcing taxes on corporations and the rich more strictly and reducing carbon emissions by encouraging the use of clean energy alternatives. It is a budget reconciliation bill introduced by Senators Joe Manchin and Chuck Schumer. The proposed Build Back Better Act, which had undergone extensive revisions after facing rejection from Manchin, was the subject of talks that led to the creation of the law. The legislative text was used in place of it as an amendment to the Build Back Better Act.

More than two dozen Republican amendments, points of order, and attempts to block the law were rejected by Democrats. Any alteration to the text of the bill brought about by an amendment may have destroyed the Democratic coalition of 50 senators required to keep the legislation moving.

The Bill Passing

Senate Majority Leader Chuck Schumer stated that it was time to move forward with a large, bold package for the American people at the start of the session on Saturday night. He asserted that the measure had “the boldest clean energy package in American history” to fight climate change and decrease consumer costs for power and some drugs. Due to the $430 billion increase in spending and over $740 billion in new revenue included in the deal, Republicans have fiercely criticized Democrats.

After months of impasse over President Joe Biden’s emissions-reduction plan, the Senate enacted the Inflation Reduction Act of 2022 on Sunday, the most ambitious climate spending program in American history. The bill allots $369 billion for ensuring the country’s energy security and combating climate change. After senators cast their votes along partisan lines, Vice President Kamala Harris cast the deciding vote to pass the law.

Democrats assert that the policy will help lower inflation because it pays for itself over time and cuts the federal deficit, two economic liabilities that have also weighed on their ambitions of maintaining parliamentary power in the run-up to the 2024 presidential election. Republicans criticize the package as a job-killing, left-wing spending wish list that might impede growth at a time when the economy is in risk of entering a recession because they claim it will not handle inflation. Democrats passed the law by adopting a parliamentary technique known as “reconciliation,” which enables budget-related legislation to pass on a simple majority rather than the 60-vote requirement for most bills in the 100-seat chamber.

The President’s Statement Press Release

On August 7, Senate Democrats voted to lower the price of prescription pharmaceuticals, health insurance, and everyday energy expenses, cut the deficit, and finally have the wealthiest businesses pay their fair share. They did this by standing up for American families over special interests. In my campaign for president, I pledged to restore government support for working families, and this bill does just that, period. No matter how much their drug expenditures would otherwise be, seniors will not have to pay more than $2000 per year in out-of-pocket expenses for prescription medications under this bill. In addition, 13 million Americans with health insurance through the Affordable Care Act will pay $800 less per year in premiums. This bill reduces the deficit in order to combat inflation.
 
Additionally, this bill commits the highest sum of money ever to tackling the existential threat posed by climate change. By employing American people to produce solar panels, wind turbines, and electric vehicles, it addresses the climate crisis and increases our energy security. Every year, it saves households hundreds of dollars in energy bills. It pays for everything by introducing a minimum corporate tax so that our wealthiest firms may begin to contribute fairly. There is absolutely no tax increase for anybody making under $400,000 annually. I want to express my gratitude to Senate Democratic leader Chuck Schumer and each and every supporter of this legislation. It requires a lot of concessions. The majority of the time, significant things are done. I am eager to sign this into law and urge the House to do so as quickly as feasible.
 

Effect of the Act On Climate Change By Climate Groups

American Clean Power:

“This is the vote that the entire world has heard. It places the United States on a road to generating 550,000 new employment in the renewable energy sector while cutting emissions across the board by 40% by 2030. After years of uncertainty and delay, this is a once-in-a-generation opportunity for sustainable energy. The United States will remain within striking distance of our climate targets thanks to this historically large investment in clean energy.

Solar Energy Industries Association:

“This is a significant day for America’s advancement in renewable energy and position as a global climate leader. With the Inflation Reduction Act’s Senate approval, solar and storage companies are one step closer to having the financial security they need to make the long-term investments necessary to decarbonize the nation’s electric grid and generate millions of new job opportunities. We are grateful to our members, the clean energy community, and each and every one of our solar supporters in Congress for their work in advancing us to this historic moment. This law is the most revolutionary investment America has ever made in our future in terms of the environment.

Natural Resources Defense Council:

According to the defense council, the Senate created climate history by passing The Inflation Reduction Act Of 2022. The United States has never taken a measure as substantial as this one to tackle climate change. All 50 states’ residents will gain from it in terms of their future, houses, finances, health, and overall well-being. Additionally, it will assist the United States in fulfilling its unquestionable obligation to the rest of the world to contribute to resolving this global problem. To secure this crucial climate action, the House must reconvene as soon as possible. Time is of the essence. Although this measure is far from ideal in terms of reducing climate pollution, the advantages vastly exceed the disadvantages by a factor of ten.

Rocky Mountain Institute:

This is a historic time for the advancement of renewable energy and the environment, not just in the US but also around the world. This measure lowers expenses for American consumers while giving the United States a real shot to meet its Paris Agreement target.

American Council on Renewable Energy:

“It’s now obvious that the goal is within reach. The Inflation Reduction Act of 2022 adoption by the Senate is an important step towards the clean energy future that scientists say the American people and economy urgently require. The historic $369 billion investment made in climate and clean energy programs will aid in the deployment of thousands of megawatts of renewable energy the creation of hundreds of thousands of well-paying jobs in the United States, the reduction of cost of electricity, and puts the nation on track to achieving our climate goals.

Opposition By Other Climate Groups

However, other organizations claimed the bill makes too many exceptions for fossil fuel projects. Before the bill passed, Jean Su, director of the Center for Biological Diversity’s Energy Justice program, said it “reflects an unequal process, where the perspectives of people at the frontlines of fossil fuel production and impact were completely neglected.” “The bill’s commitment to large government oil and gas growth is dangerously at odds with scientific truth,” she continued, “even though it provides important money for renewable energy.”

Democrats claimed that the plan will continue to cap insulin costs for Medicare beneficiaries. Independent Senator Bernie Sanders of the Democratic caucus, proposed changes to increase Medicare eligibility, establishes a civilian conservation corps and child combat poverty, however, both party leaders rejected them.

Conclusion

However, Democrats are hoping that Inflation Reduction Act of 2022 adoption, before Congress recess, could support Democratic House and Senate candidates in the Nov. 8 midterm elections, especially at a time when Biden’s public approval ratings are low and inflation is high.

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