Today, President Joe Biden signed the Inflation Reduction Act into law. The new law will help to reduce inflation and lower costs for Michigan families – and does not raise taxes on anyone making less than $400,000 a year.
“The Inflation Reduction Act is yet another example of President Biden and Democrats delivering cost-saving legislation for Michiganders. From lowering health care costs and capping the monthly cost of prescription drugs for seniors, to making sure folks can save money on home energy, Democrats are providing much-needed relief to families without raising taxes on anyone making below $400,000,”” said Michigan Democratic Party Chair Lavora Barnes. “It’s no surprise that every single Michigan Republican once again sided with Big Pharma and billion-dollar corporations at the expense of their constituents when they voted against this transformative law, but Democrats remain laser-focused on cutting costs—and we’re doing it by making sure corporations finally pay their fair share.”
Here’s what the Inflation Reduction Act will deliver for Michiganders:
- Lowers prescription drug costs by allowing Medicare to negotiate drug prices and capping out-of-pocket costs for seniors to $2,000.
- Lowers energy costs by hundreds of dollars on average for many families, increases cleaner energy production, and reduces carbon emissions by roughly 40 percent in less than 10 years.
- Locks in lower health insurance costs by $800 on average for 13 million Americans who get their insurance through the Affordable Care Act exchanges.
- Fights inflation by reducing the deficit.
- Makes the tax code fairer by cracking down on the ultra-wealthy and large corporations so they pay their fair share in taxes.
- Does not raise taxes on families making $400,000 or less and no new taxes on small businesses.