Bonamici Statement on Inflation Reduction Act
Madam Speaker, I rise today in support of a transformational piece of legislation, the Inflation Reduction Act.
The Inflation Reduction Act's historic investments will reduce costs for families and individuals, expand access to affordable health care, strengthen domestic energy production and manufacturing, and reduce the federal deficit. This plan will also reduce carbon emissions to address the climate crisis and move us toward a better, healthier, and more secure future for Oregonians and people across the country.
The coronavirus (COVID-19) pandemic exacerbated longstanding economic inequities, and working families have been facing the consequences. Economic inflation caused by increased consumer demand, global supply chain disruptions, and Russia's unprovoked invasion of Ukraine have shifted global markets, affecting everyday costs. Higher prices are straining household budgets and depriving workers of the full benefits of our growing economy. The Inflation Reduction Act will lower costs for health care, prescription drugs, and consumer energy, and make robust investments in energy security and climate solutions, including for disadvantaged and rural communities.
In the Pacific Northwest, climate change is not a distant threat; it's our current reality. The Inflation Reduction Act acknowledges the scale of the climate crisis by investing nearly $375 billion in a clean energy future. It will lower consumer energy costs with clean energy tax credits, and decarbonize every sector of the economy to reduce 40 percent of U.S. carbon emissions by 2030. Importantly, the Inflation Reduction Act will invest $60 billion in environmental justice and climate resilient solutions through sustainable agriculture, coastal, home energy, and transportation priorities to bolster rural communities and individuals disproportionately affected by climate change. Through economy-wide investments in agriculture, coastal restoration, energy, manufacturing, and transportation, this pivotal legislation will help the U.S. combat climate change while creating new, good paying jobs and mitigating climate inequities.
Everyone in the United States should have access to quality, affordable health care. To make health care more affordable, the Inflation Reduction Act will extend important health policies passed in the American Rescue Plan for an additional three years. These policies include eliminating the cap on subsidies for health insurance coverage under the Affordable Care Act, which will benefit up to four million Americans. Additionally, rising prescription drug costs are a burden for many Americans, particularly seniors. Too often, excessive drug prices force families to choose between their health and other necessities, like food and housing. That's unacceptable. The Inflation Reduction Act will reduce the price of prescription drugs by allowing Medicare to negotiate drug prices for certain medications, and will cap seniors' out-of-pocket costs to $2,000 a year. The bill also caps insulin costs at $35 per month for Medicare beneficiaries. The Inflation Reduction Act will stabilize Medicare Part D by holding annual premium growth to current levels, which will incentivize drug manufacturers and insurers to keep drug prices low.
These historic investments will be paid for by making our tax code more progressive, rather than regressive. With the tax provisions in this bill, the very largest corporations, currently contributing as little as one percent in taxes, will pay a minimum rate rather than take advantage of loopholes. After the Republicans' 2017 tax bill was signed into law, corporations spent more than $1 trillion on stock buybacks in 2018. The Inflation Reduction Act will help correct the missed opportunities of the so-called Tax Cuts and Jobs Act by establishing a tax on stock buybacks. It will also strengthen the Internal Revenue Service to enforce existing tax laws, improve customer service, speed access to tax refunds, and reduce abuse of the tax code. Improving tax fairness will bolster domestic investments in our economy while also reducing the deficit.
The Inflation Reduction Act makes tremendous progress, but it does not address all of the important priorities of the people of NW Oregon and across the country, including needed investments in workforce development and child care. I will continue working on those important priorities, but in the meantime, I look forward to making significant progress by working with my colleagues in Congress and partners in the Biden-Harris Administration to pass the Inflation Reduction Act.