4 Ways the Inflation Reduction Act Will Save You Money
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President Joe Biden signed a sweeping climate, tax and health care package into law on Tuesday — and it could have an impact on your wallet.
Dubbed the Inflation Reduction Act, the package is aimed at raising tax revenue from billion-dollar businesses and high-income earners, combating climate change and reducing the federal deficit (the difference between how much money the government spends versus how much it raises). It also, crucially, includes several measures that could help Americans save money.
“The American people are going to see lower prescription drug prices, lower health care costs and lower energy costs,” Biden said in a speech Friday after Congress passed the Inflation Reduction Act.
While the act includes many provisions from Biden’s Build Back Better agenda, it does not include major social-spending initiatives like expanded child tax credits, universal preschool, free community college or more affordable housing. It's also unlikely to actually lower inflation: According to an analysis from economists at the University of Pennsylvania, the impact on inflation will be “statistically indistinguishable from zero.”
While the overall inflation rate — which is currently 8.5% and has remained above 8% since March — is unlikely to change much, here’s a closer look at where the Inflation Reduction Act can help reduce costs for everyday folks.
1. Subsidized health insurance
