Measure will lower drug prices for New Jerseyans, reduce healthcare and energy costs, grow domestic renewable energy industries
Washington, DC– Representative Mikie Sherrill (NJ-11) voted to pass the Inflation Reduction Act of 2022, a bill that will fight inflation, lower prescription drug costs, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030. The legislative package now heads to the president’s desk for his signature.
“From the start of my tenure in office, I’ve fought hard to lower everyday costs for New Jerseyans. This bill does just that. By lowering the cost of prescription drugs, energy prices, and healthcare premiums, this bill keeps more money in the pockets of NJ-11 families,” said Rep. Sherrill. “This legislation lowers taxes by providing energy efficient tax credits for NJ families. It addresses the economic issues of today and tackles the environmental concerns of tomorrow by reducing our reliance on foreign oil and lowering our carbon emissions. These are all major wins I promised NJ-11 I would secure.”
“During the legislative process, Republican Senators once again tried to pay for this bill on the backs of New Jersey taxpayers by extending the SALT deduction cap another year,” Rep Sherrill continued. “I worked hard to beat back their efforts and defeated that attempt, and this bill does not raise taxes at all on NJ families and small businesses. Lifting the SALT cap remains a key priority of mine, which is why today I am urging the Ways and Means Chairman Richard Neal to include its removal in the end of year tax bill.”
“The Inflation Reduction Act is a game-changing and historical investment of hundreds of billions of dollars in tax credits for clean energy like solar and wind, clean transportation, decarbonized buildings, and clean energy manufacturing here in the U.S., all set to lower emissions, create family-sustaining jobs, and reduce energy costs for over a decade”, said Anjuli Ramos-Busot, NJ State Director for the Sierra Club. “This legislation will save money for NJ families, and it will ensure each and every one of us is able to live and work in a healthy community. We thank Congresswoman Mikie Sherrill for her continuous commitment to the protection of our environment, climate action and the protection of our NJ families.”
Lowering the cost of prescription drugs
After three decades of gridlock on lowering prescription drug prices, this bill will empower Medicare to directly negotiate prices of costly medications administered in doctors' offices or purchased at the pharmacy. In addition, there is a provision to the bill that will cap what Americans with Medicare pay for insulin at $35 a month.
The bill will redesign Medicare's Part D drug plans so that seniors and people with disabilities won’t pay more than $2,000 a year for the prescription drugs they need. Insurers and drugmakers will have to pick up more of the tab, bringing costs down for everyday Americans.
The legislation also includes a three-year extension on health insurance subsidies in the Affordable Care Act, estimated to keep premiums at $10 per month or lower for the vast majority of people covered through the federal health insurance exchange. This will help millions of Americans avoid spikes in their healthcare costs at a time when the cost of living is a challenge for so many.
Tackling climate change
Both high energy costs, and the growing impacts of climate change, pose a significant burden to every American. The historic investments included in the Inflation Reduction Act will bring down consumer energy costs, increase American energy security, and substantially reduce greenhouse gas emissions. This legislation:
Lowers energy costs for Americans including at the pump and on utility bills.
Increases American energy security through policies to support energy reliability and cleaner production coupled with historic investments in American clean energy manufacturing to lessen our reliance on China, ensuring that the transition to a clean economy creates millions of American manufacturing jobs, and is powered by American-made clean technologies.
Invests in decarbonizing all sectors of the economy through targeted federal support of innovative climate solutions.
The Inflation Reduction Act is the largest federal clean energy investment in U.S. history. The bill will lower greenhouse gas emissions by 40%, based on 2005 levels, by the end of the decade.
Pay-Fors
According to the nonpartisan Congressional Budget Office (CBO), this legislation will reduce the federal budget deficit by $101 billion over 10 years. More than a third of this revenue comes from savings on government spending on prescription drugs.
The Inflation Reduction Act also includes a tax revenue plan that re-builds the Internal Revenue Service (IRS) and imposes a 15% Corporate Minimum Tax to ensure the corporations cannot avoid paying their fair share of taxes. By investing in tax enforcement and compliance for the next ten years, the CBO estimates the IRS will collect an additional $203 billion in already due, but unpaid taxes.
Additionally, the proposal would impose a 15% domestic tax on the approximately 200 largest corporations that currently pay less than the corporate tax rate.
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