Biden signs Inflation Reduction Act

WASHINGTON (Gray DC) - President Joe Biden signed the Inflation Reduction Act into law Tuesday, August 16.

Biden said measure will allow spending on combating climate change and improving healthcare at the expense of increasing taxes on large corporations and drug manufacturers.

“The American people won, and the special interests lost,” the president said.

The $750 billion extends subsidies as part of the “Affordable Care Act,” reduces Medicare drug prices, and provides tax credits for clean energy items like solar panels.

The EPA said the act will go a long way in reducing the U.S. carbon footprint through measures like tax credits for solar panels.

(Michael Regan: Administrator, Environmental Protection Agency)

“This is good for the planet, it’s good for families, it’s good for global competitiveness,” EPA Administrator Michael Regan said. “This is a win, win, win.”

The new law will also provide Americans with tax credits for electric cars.

“It means lower costs for Americans in several ways, including for a transportation specific example, lower costs of electric vehicles,” Transportation Secretary Pete Buttigieg said. “These are vehicles where you can save a lot of money, but only if you can afford to buy them in the first place. So we’ve been fighting to lower the price.”

But Republicans said the bill will cost consumers more money through tax increases. They also take issue with increasing the IRS budget by $80 billion.

(Rep. Michael Guest: (R) Mississippi)

“It creates an army of IRS agents and at a time when Americans, many of which are struggling to purchase gas. To put groceries and food on their table which will actually increase inflation, not decrease it,” Rep. Michael Guest, R-MS, said.

Most economists say the act will have virtually no effect on inflation in the next several years.