The Inflation Reduction Act of 2022


The Inflation Reduction Act of 2022

On August 19, 2022, the President signed The Inflation Reduction Act of 2022, which marks a significant conclusion to the Biden-Harris’s Administration efforts to advance a sweeping domestic policy agenda. While many of the provisions (as listed below) are important priorities, the bill was not as expansive as Democrats had hoped, failing to address childcare, caregiving, paid leave, and the child tax credit advance payments. It is unlikely that these additional care-related policy priorities will find traction in the final months of the 2022 legislative calendar, however, Republicans have been eager to discuss policy solutions around paid leave considering the Supreme Court case related to reproductive health.

The legislation includes the following: 

  1. Caps out-of-pocket Medicare drug costs to an estimated $4,000 or less in 2024 and settling at $2,000 in 2025,
  2. Allows for Medicare to negotiate 100 drugs over the next decade, and requires drug companies to rebate back price increases higher than inflation,
  3. Caps, by 2023, the monthly cost of insulin to $35,
  4. Extends the ACA health care premium subsidies for an additional three years, 
  5. Corporations with at least $1 billion in income will have a new corporate minimum tax rate of 15%. Taxes on individuals and households won’t be increased.
  6. Includes $80 billion dollars to modernize the Internal Revenue Service

The bill was passed in the Senate without Republican support under the reconciliation process. The House passed the bill 220-207 on August 12.

The National Association for the Self-Employed remained neutral on the bill.

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