WASHINGTON DC (WWLP) – After a year of negotiations, Democrats have finally reached an agreement for an energy and health care bill. The next step is to get the bill passed by Congress but it faces GOP opposition.
The Inflation Reduction Act of 2022 addresses prescription drug prices, climate change, and inflation. Here’s what you can expect from the bill.
- Medicare drug price negotiations. This will allow Medicare to negotiate the cost of expensive prescriptions directly with drug companies.
- A drug cost inflation cap. This will impose penalties on drug companies if there prices increase faster than inflation.
- Federal tax code changes, including a 15 percent minimum tax on corporations.
- And lastly, climate change.
The American Council on Renewable Energy CEO Gregory Wetstone says this bill will provide needed stability for renewable energy companies, “For the first time with this bill, the renewable energy business, wind and solar and other swill have the benefit of knowing there is a long term tax platform.”
The proposed new minimum tax on big corporations worries Republicans. They say the increase will hit millions of Americans because the corporations will pass on costs to consumers.
Wyoming Senator John Barraso says this will send Americans over a cliff, “In terms of wanting to raise taxes and increase spending. Those are things that are going to make the economy even worse.”
In the face of Republican opposition, the proposal needs the vote of every Senate Democrat to become law. With August recess starting next week, there is a scramble to nail down support for the bill.