After months of negotiations, Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D- W. Va., reached a deal to move forward on a pared-down reconciliation bill on climate and taxes. The bill, titled the Inflation Reduction Act of 2022, aims to do the following:
- Reduce the deficit
- Invest in domestic energy production and manufacturing
- Reduce carbon emissions by roughly 40% by 2030
- Allow Medicare to negotiate prescription drug prices
- Extend the expanded Affordable Care Act program for 3 years, through 2025
- Potentially increase taxes for corporations and carried interest
Estimates for revenue raisers and investments from the bill are as follows:
- TOTAL REVENUE RAISED
- 15% Corporate Minimum Tax
- Prescription Drug Pricing Reform
- IRS Tax Enforcement
- Carried Interest Loophole
- TOTAL INVESTMENTS
- Energy Security and Climate Change
- Affordable Care Act Extension
- TOTAL DEFICIT REDUCTION
- $739 billion
- 313 billion
- 288 billion
- 124 billion
- 14 billion
- $433 billion
- 369 billion
- 64 billion
- $300+ billion
It remains to be seen as to whether this bill has the support to get a simple majority vote in the Senate as required for a reconciliation bill to pass.
About the Author
CJ Aberin, CCSP – Principal
Pasadena
CJ Aberin is a Principal at KBKG and oversees the Green Building Tax Incentive practice. Over the last several years, CJ Aberin has performed Green Building Tax Incentive studies and Cost Segregation for clients in various industries that range from Fortune 500 companies to individual real estate investors.» Full Bio