President Signs Inflation Reduction Act

Bill addresses taxes, healthcare, and climate 

On Tuesday, President Joe Biden signed the Inflation Reduction Act into law, one he said he had waited 18 months to sign. The legislation will affect a myriad of American policies. One of the policies it restructures is the tax credit currently in place for electric vehicle (EV) purchases. Previously, American buyers were able to purchase a certain amount of electric vehicles for a $7,000 tax credit. But with the passage of the new law, many of those cars are now ineligible for this tax credit.

The president called the climate, healthcare spending, and taxing legislation “one of the most significant laws in our history,” stressing that more than once every minority member of Congress opposed the bill. He initially sought a much broader bill, but not enough support could be mustered for the additional items like money for child care, preschool, and paid family leave. 

The new law provides $369 billion to fund energy and climate projects intended to reduce carbon emissions by 40% by 2030. It will also limit out-of-pocket drug expenses for seniors on Medicare to $2,000 annually, and allow Medicare to negotiate with drugmakers on prescription prices.  

The legislation sets a minimum 15% corporate tax rate for most large companies and provides $80 billion in funding to the IRS, allowing the agency to hire thousands of agents and revamp decades-old technological systems. 

It is unclear how soon the taxation and spending will begin. Also, despite the bill’s name, the extent to which the legislation will help lower inflation remains to be seen. The Congressional Budget Office called the bill’s impact on inflation “negligible.” 

As the Lord Leads, Pray with Us…

  • For the president and his administration as they set about implementing the provisions of the new legislation.
  • For IRS Commissioner Rettig as he implements funding from the bill for updates, modernization, and increased staffing.
  • For Administrator Brooks-Lasure as she oversees the Centers for Medicare and Medicaid Services.

Sources: CBS News, Yahoo News, Reuters


Back to top