This Tuesday Joe Biden signed into law a sweeping tax, healthcare, and climate bill, called the Inflation Reduction Act, a significantly pared back version of the “Build Back Better Plan” which he was hoping to pass last year.
Bill, called the inflation reduction act, “build back better plan” which he was pushing for last year. on the private equity industry. in his remarks before signing the bill, joe other than of course the private equity industry – of course… deficit and critics say it will lead to higher that it will be ineffective at dampening inflation. and work out to what extent it
Might reduce in around 40 years, and see who the winners and losers are. energy technology, both at the industrial expansion of affordable care act health insurance to offset these deficit-increasing initiatives, corporations’ book income, reduces government reforms and provides for additional irs funding in excess of the cost of implementation. bill should have a minimal
Impact on inflation budget model says that there should be no they argue that it doesn’t add to inflation, build back better plan. but at the same it the nonpartisan congressional budget office effect” on inflation this year and next. budget, a group that advocates for lower deficits, much change right away, but some will see things like health care and energy.” in
Climate and energy policies, $64 billion affordable care act, and a 15% corporate minimum $1 billion a year. to get a deal done, biden had to give up some and tax cuts for the middle class. the $437 billion spending package is supposed reductions in drug prices for medicare recipients billion is expected to come from increased and more frequent audits for americans. overall,
More than $300 billion over a decade. families and two – by helping to bring down the deficit. next decade? and what industries are most likely to be affected by the act? in rebates, to help households pay for green-energy like efficient heat pumps, electric water can receive a 30 percent credit for installing on spending money to upgrade your home, the you. obviously,
This provides less benefit homes, or who can’t afford to upgrade their appliances. begins next year. now, there are income limits in response to criticisms that it largely on top of this there is a $4,000 credit for the credits are limited to cars that cost trucks and suv’s that retail for $80,000 push manufacturers to produce more affordable to buy. the inflation
Reduction act includes nearly to help the agency increase enforcement measures and collect unpaid taxes. where opponents have expressed concern that new agents to target and harass average taxpayers. be used to hire agents, it can be used for congressional budget office estimates that in additional taxes will be collected over by more than $124 billion over that
Time period. taxpayers will get their phone calls returned make it possible for americans to file their charge rather than having to use an accountant describe it as a stealth tax hike and argue be audited by this better funded version of the irs. beginning with 10 prescription medications by 2029, so that should have an effect, but it is not really very fast moving.
If they raise medication prices faster than will be capped for medicare recipients at costs for people with diabetes will max out at $35 a month. not immediately. you’ll likely see healthcare which isn’t exactly amazing considering the current rate of inflation. medicare recipients’ costs at or below inflation. continue to benefit from the affordable care insurance
Premiums. these subsidies were originally slated to expire next year. food and energy costs, are not immediately the analysis by the university of pennsylvania’s the legislation could reduce inflation by years. but they note that they have “a low have any measurable impact on inflation.” predicted source of revenue in the new act to be subject to the minimum tax,
U.s. corporations they report to shareholders less some adjustments will hit foreign companies too, though they how it will work is that companies subject liability twice – once under regular corporate their adjusted book income by 15%. their tax a few important adjustments included in the the minimum tax. to prevent manufacturers will be able to use some of the same
Credits corporate tax bills. this will lower the minimum tax they’ll pay as well. intense lobbying meant that this got pulled carried interest loophole that the bill initially was supposed to close. – are expected to be subject to the tax. face a new 1% excise tax on purchases of their will have heard of. proponents say that instead should use this money to increase
Employees’ tax is projected to bring in $74 billion in affects the returns of investors. it is unlikely that such a tax will translate than cash on hand at businesses. investing happen either as investment is already at that companies are skipping investing in worthwhile outcome is that most of the money not spent pile of around $8 trillion in cash that u.s. companies are
Already sitting on. see a flurry of buybacks in the next few months, tax takes effect. ok, so how does this bill affect the energy to address climate change – something the are touting as a huge win. solar and wind up until now, the tax credits had to be renewed every year or two. and nuclear power gets financial support in the bill too. industry by mandating the leasing
Of vast locks renewables and fossil fuels together, projects on public lands, it must offer new oil and gas leases first. are an important part of an energy transition. capture and storage, hydrogen, and biofuels all of these technologies get new and bigger incentives. a maximum of $50 per tonne of co₂ buried help make more carbon capture and storage projects profitable.
Us can have a “made in america” energy to reduce the problems associated with international are manufactured abroad right now. so, for this reason, domestic clean technology manufacturing for the subsidies, they will have to pay workers which pegs the wages for specific occupations electric vehicles will have to be assembled other critical minerals used in the cars need
Countries that have free trade agreements with the united states. its green energy manufacturing sector, which credits for purchasing electric vehicles made in north america. the u.s. less vulnerable to energy price spikes, on a small scale. if the bill reduces deficits and pulls money that means there is less money to go around have an effect on inflation. monetary policy
Is still the main tool for is trying to do something to address inflation, future inflation, which can be a self-fulfilling prophecy. if you enjoyed this video, you should watch of a housing bubble or not. have a great day and talk to you soon. bye.
Transcribed from video
The Inflation Reduction Act – Will it Work? By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2022-08-19T220007+0000endTimestamp2022-08-19T221831+0000}