Summary of Inflation Reduction Act

SUMMARY: THE INFLATION REDUCTION ACT OF 2022
The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to
fight inflation, invest in domestic energy production and manufacturing, and reduce carbon
emissions by roughly 40 percent by 2030. The bill will also finally allow Medicare to negotiate
for prescription drug prices and extend the expanded Affordable Care Act program for three
years, through 2025.
The new proposal for the FY2022 Budget Reconciliation bill will invest approximately $300
billion in Deficit Reduction and $369 billion in Energy Security and Climate Change programs
over the next ten years.
Additionally, the agreement calls for comprehensive Permitting reform legislation to be passed
before the end of the fiscal year. Permitting reform is essential to unlocking domestic energy and
transmission projects, which will lower costs for consumers and help us meet our long-term
emissions goals.
TOPLINE ESTIMATES:
TOTAL REVENUE RAISED $739 billion
15% Corporate Minimum Tax 313 billion*
Prescription Drug Pricing Reform 288 billion**
IRS Tax Enforcement 124 billion**
Carried Interest Loophole 14 billion*
TOTAL INVESTMENTS $433 billion
Energy Security and Climate Change 369 billion***
Affordable Care Act Extension 64 billion**
TOTAL DEFICIT REDUCTION $300+ billion
* = Joint Committee on Taxation estimate
** = Congressional Budget Office estimate
The Inflation Reduction Act:
• Enacts historic deficit reduction to fight inflation
• Lowers energy costs, increases cleaner production, and reduces carbon emissions by
roughly 40 percent by 2030
• Allows Medicare to negotiate drug prices and caps out-of-pocket costs to $2,000
• Lowers ACA health care premiums for millions of Americans
• Make biggest corporations and ultra-wealthy pay their fair share
• There are no new taxes on families making $400,000 or less and no new taxes on small
businesses – we are closing tax loopholes and enforcing the tax code.