On August 16th, 2022, President Biden signed the largest piece of climate legislation titled ‘The Inflation Reduction Act.’ By the year 2030, it’s expected to cut greenhouse gas emissions here in the U.S. by 40% from 2005 levels.
Some provisions are lowering energy bills, reducing carbon emissions by roughly 40% by 2030, and $35/month insulin in 2023. Changes are sure to evoke support from many who support reducing climate change. However, how if the act will fight inflation seems unclear to many. The act has ties to taxes, with a 15% corporate minimum tax, a 1% fee on stock buybacks and enhanced IRS enforcement, but the act seems to be more climate-reducing than inflation-reducing. This is because many of the changes involving taxes hold a small net benefit for the economy.
The act seems to be controversial, with its lack of help surrounding inflation but help in other areas including medical costs (with the act allowing medicare to negotiate drug prices) and the environment. Many people disapprove of the act because of the increase in IRS agents. While many support the act because of its promise to reduce net emissions. It seems the US will have to wait and see what is to come of the historic act.
This blog post is part of the CIMA Law Group blog. If you are located in Arizona and are seeking legal services, CIMA Law Group specializes in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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