Swalwell Votes for Inflation Reduction Act to Lower Costs, Fight Climate Change and Cut the Deficit

Press Release

Today, U.S. Representative Eric Swalwell (D-CA) voted to pass the Inflation Reduction Act, a historic package that will address rising energy and health care costs, fight climate change, and create jobs. The bill will also take significant steps to force Wall Street corporations and the ultra-wealthy to pay their fair share to reduce the deficit -- without ever raising taxes on middle class Americans. It passed with a vote of 220 to 207 and now heads to President Biden's desk for his signature.

"With today's passage of the Inflation Reduction Act, we're taking action to tackle inflation and address the biggest challenges facing our nation: the worsening climate crisis, soaring prescription drug costs, and a tax code that unfairly puts corporations and the wealthy before working Americans," said Swalwell. "This bill will address each of these issues head-on, while reducing our national debt and creating thousands of good-paying jobs. This is a game-changing piece of legislation that will ensure our continued success in the decades to come."

The Inflation Reduction Act will:

LOWER HEALTH CARE AND PRESCRIPTION DRUG COSTS

Empower Medicare to negotiate the price of prescription drugs. The Inflation Reduction Act allows Medicare to negotiate a significantly discounted price for prescription drugs that are purchased from pharmaceutical companies. This will save taxpayers hundreds-of-billions of dollars.
Cap Medicare patients' out of pocket costs at $2,000 per year. Today, there is no cap on spending for prescription drugs seniors buy from pharmacies. The Inflation Reduction Act caps Medicare's out of pocket prescription drug costs at $2,000 a year, guaranteeing that a lifesaving drug for a devastating disease like cancer will never again cost tens of thousands of dollars for seniors.
Institute a new "inflation rebate" under Medicare. Drug companies should not be allowed to make arbitrary and capricious price increases on products that are not changing year-to-year. The Inflation Reduction Act requires drug companies to rebate back the difference to Medicare if they raise prices higher than inflation.
Provide free vaccines for seniors. The Inflation Reduction Act makes all vaccines free for Medicare beneficiaries, the only population for which cost-sharing is not currently covered.
Expand premium and co-pay assistance on prescription drugs for low-income individuals. Currently, the low-income subsidy program (LIS) under Medicare Part D is fully available to all seniors earning less than 135% of the federal poverty level and is partially available to seniors earning less than 150% of the federal policy level. The Inflation Reduction Act eliminates the partial subsidy status, giving those seniors the full low-income subsidy under Medicare Part D.
Extend Affordable Care Act premium subsides. The Inflation Reduction Act makes a three-year extension of premium subsidies for Americans who receive their health care through the Affordable Care Act -- more than 1.6 million Californians.

COMBAT THE CLIMATE CRISIS AND CUT ENERGY COSTS

Lower energy costs. The Inflation Reduction Act will save California families an average of $1000 per year on their energy bills.
Make the largest ever investment in clean energy. The Inflation Reduction Act includes $260 billion in clean energy tax credits -- the largest investment ever in renewable energy technologies. This will reduce carbon emissions by 40% in just a few years, and create countless manufacturing and production jobs across the country.
Support energy efficiency and cost-saving programs. Included in the Inflation Reduction Act is $80 billion for energy saving rebates. This will help Californians purchase cost-saving technologies like heat pumps, better insulation, or home solar panels.
Invest in the production of American oil and gas. The Inflation Reduction Act expands leasing of oil and gas on federal lands to increase the supply of American fossil fuels to drive down prices for consumers as the country transitions to clean energy.
REDUCE THE DEFICIT AND CLOSE TAX LOOPHOLES

Fund the IRS to improve compliance and penalize ultra-high earners who exploit tax code loopholes. Some of America's wealthiest have taken advantage of an underfunded Internal Revenue Service (IRS) to avoid paying taxes they owe. The Inflation Reduction Act boosts IRS funding by $80 billion to improve enforcement and reduce the deficit by more than $300 billion over the next 10 years.
Enforce a 15 percent corporate minimum tax. Many of America's largest companies abuse the tax code to pay little to no taxes -- often leading to instances where they contribute less than middle class families. The Inflation Reduction Act includes a corporate alternative minimum tax provision that imposes a 15 percent minimum tax on corporations with profits of more than $1 billion, raising more than $250 billion over the next 10 years.
Reduce the deficit for years to come. In total, the Inflation Reduction Act is projected to reduce the deficit by $1.9 trillion over the next two decades.

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