The Inflation Reduction Act and more…

Biden and the Dems for the Win! But not so fast...

Senators Joe Manchin and Chuck Schumer Photo Credit: npr.org

Issue #93 Government July 28, 2022

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The Good…

Yesterday, Wednesday, July 27, 2022, there were two major legislative wins for the Democrats and President Biden:

1. The Senate passed the “Creating Helpful Incentives to Produce Semiconductors” (CHIPS) bill that will appropriate about $280B to more quickly add manufacturing capabilities in the U.S. for semiconductors, artificial intelligence, tax credits, and research and development. Not only will this add good jobs to the economy, but it will also really help with the supply chain problems experienced during the worst of COVID and help to reduce inflation by easing the shortages in chips that are needed in many products including cars. The vote was 64 to 33, including 17 Republicans, which is above the filibuster threshold.

2. Senators Chuck Schumer (D-NY) and Joe Manchin (D-WV) reached a deal on a slimmed-down “Build Back Better” plan, now called the “Inflation Reduction Plan.” Yes, Senator Manchin decided that “…inflation is not a problem” when less than two weeks ago, he said that it was a big problem. Manchin “named” the bill and made sure that everyone knew that it was because of his work that it passed. The bill includes price reforms for some prescription drugs, lower ACA premiums, more money for the IRS, a 15% mandatory corporate minimum tax, investments in climate and energy, and big investments in reducing the deficit even further. As Biden promised, there are no new taxes for people who earn <$400,000 annually. 

The Bad…