US lawmakers approve cut inflation act Kids News Article

The US House of Representatives approved the Inflation Reduction Act on August 12, 2022. (Sheila Jackson Lee/US/Gov Twitter)

The United States House of Representatives passed the Inflation Reduction Act on August 12, 2022. complete The legislation, approved by the Senate on August 8, 2022, will be signed into law by President Joe Biden later this week. It is designed to reduce health care and energy costs, fight climate change and raising taxes on big business. Key provisions of the bill include:

Climate change

Much of the $430 billion in new spending – $369 billion – will be used to tackle climate change and boost clean energy use. More than $60 billion will be used to build clean energy sources, such as wind turbines. Funds have also been set aside for encourage car manufacturers to start or transition to the production of electric vehicles. US consumers will receive a tax credit of up to $7,500 for purchasing an electric vehicle and rebates for installing solar roofs or switching to energy.efficient Appliances. The authors of the bill believe that combined measures will help reduce greenhouse gases in the United States emissions by 40% by 2030.

Health care costs

For the first time, Medicare – the health insurance plan available to Americans over 65 – will be able to directly to negotiate the price of more Dear drugs with drug manufacturers. From 2025, Medicare recipients will not have to pay more than $2,000 per year for prescriptions. The law also limits the price of insulin — used to control blood sugar in people with type 1 Diabetes – at $35 per month for those on Medicare. Health coverage benefits provided under the Affordable Care Act will also be extended until 2025.

The Cut Inflation Act tackles health care, taxes and climate change. (AFL-CIO.org)

Tax changes

Companies with annual profits over $1 billion must pay at least 15% tax. Those who decide to redeem their shares will be assessed a special tax of 1%. Share buybacks, which reduce the number of shares available on the public market, are a tactical create value for existing shareholders. The legislation also allocates much-needed funds to the Internal Revenue Service to to improve tax collection measures and to chase tax cheats.

Tax measures should produce up to $300 billion in annual revenue. US officials believe the funds could substantially lessen tax budget deficit – the difference between what the federal government spends and what it collects – which was $211 billion in July 2022. Some analysts believe that reducing the deficit will help lower consumer prices and curb inflation.

Resources: CNN.com, NPR.org, CBSnews.com, wri.org