Finally, some great news! The U.S. Senate has come to an agreement on a bill that will rein in Big Pharma’s price gouging, help millions of people keep their health insurance, tax mega-corporations, and lower carbon emissions.
What’s happening? This week, the U.S. Senate is set to vote on the Inflation Reduction Act of 2022, a massive tax and investment plan, that will help make our tax system more fair, support and build up the health care of underserved communities, and tackle the climate crisis!
The proposed legislation will be a historic win for families and our future! It tackles some critical issues:
- Making prescription drugs more affordable: The bill removes an unfair legal prohibition that has long prevented Medicare from negotiating lower drug prices which has driven them sky-high. It will also penalize drug companies that raise prices faster than the rate of inflation and place a cap on Medicare recipients’ out-of-pocket prescription drug costs at $2,000 each year. It’s estimated that the government will raise $300 billion by reining in drug prices.
- Extending subsidies for people who buy their own insurance: The bill lowers health care premiums by extending financial assistance for ACA plans under the American Rescue plan for three years. It’s estimated that 9 million Americans would have been paying significantly higher premiums, and more than 3 million people would have become uninsured altogether, without this provision.
- Making sure corporations pay their fair share: A 15% corporate profits minimum tax so wealthy corporations don’t get away with paying $0 in federal income taxes on billions of dollars in profits. It’s estimated that this tax will raise about $450 billion dollars and reduce the deficit. In addition, this bill closes the carried interest loophole—a favorite loophole of private equity, real estate, and hedge fund managers—and in doing so raises $14 billion.
- Taking decisive action on the climate crisis: Invests $370 billion into energy and climate which will allow the U.S. to lower greenhouse gas emissions by 40%, an incredibly meaningful step in combating climate change.
It has been a long, hard road to get here and even after this bill passes, the fight will continue. (Of course!) We are so grateful for the hundreds of thousands of actions our MomsRising members have taken to push this Congress to make big, monumental change—and we will keep fighting for families together. We still need to make major investments in childcare, maternal health, home care, the Child Tax Credit, and paid family and medical leave, as well as closing the Medicaid gap and protecting immigrant families, who are critical to our care infrastructure and communities.