You may have seen in the news there is new legislation that may be passing soon in Washington DC called "Inflation Reduction Act of 2022". The House has already passed the bill (when it was called the Build Back Better Act) and it is close to being passed in the Senate. If it gets passed in the Senate, the President will sign it into law.
You can find the full text of the bill here, and below is a brief summary (link to Source).
The bill would raise revenue from:
- Imposing a 15% corporate minimum tax rate for companies with higher than $1 billion annual revenue – $313 billion
- Prescription drug price reform to lower prices, including Medicare negotiation of drug prices – $288 billion
- Increased tax enforcement – $124 billion
- Imposing a 1% excise tax on stock buybacks - $73 billion
It would spend this revenue on:
- Continuing for three more years the expansion of Affordable Care Act subsidies originally expanded under the American Rescue Plan Act of 2021 – $64 billion
- Addressing domestic energy security and climate change – $369 billion
- Funding for drought relief - $5 billion
- Deficit reduction – $306 billion
Impacts to Medicare Beneficiaries
There are two main impacts to Medicare Beneficiaries in the bill.
My concerns with the Bill are below.
I really hope my pessimism is incorrect. If the bill does get passed, I hope these changes work and generate the additional $600 Billion in Tax revenue (plus the other $200 Billion projected). Otherwise, the additional spending in this bill will continue to drive increased Inflation for many years to come.
See bio here