Ep 68: How Will the Inflation Reduction Act Impact You?

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Show Notes

When will inflation go down? That’s a question on a lot of people’s minds. Today we’re talking about the Inflation Reduction Act, which passed both the House and the Senate.

So, where is the money coming from for this bill and what is it going to support? What does this mean for you from a tax standpoint? And will it reduce inflation?

What is the Inflation Reduction Act?

The act will make a down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.

The bill will also allow Medicare to negotiate for prescription drug prices and extend the expanded Affordable Care Act program for three years, through 2025.

As we go through this legislation and what it means, we’re going to look at all of the pieces that are going to impact your financial plan. You’ve probably already heard about some of the larger details like the billions that will be spent and the thousands of new IRS workers, but we’ll also talk about where the money is coming from and exactly where it’s all going.

And ultimately, we want to try and determine whether this will actually help with the inflation problem we’ve been facing for many months now because that’s what most Americans are really concerned with in 2022.

To give you some additional reading material, we’ve included links to many good resources for learning more about this act.

Listen to more of our conversation in the podcast or use the timestamps to jump to a specific section.

[3:08] – Inflation Reduction Act

[6:30] – Where is money coming from?

[10:41] – IRS tax enforcement

[15:11] – Where is money going?

[17:13] – Health coverage

[19:12] – Will it reduce inflation?

Thanks for checking out this episode. We’ll talk to you again soon.

 

There are some great rules out there that will lead you down the path of financial success.”

-Scott Sierens

 

Additional Resources:

General

-CNBC – https://www.cnbc.com/2022/08/12/house-to-vote-on-inflation-reduction-act-tax-and-climate-bill.html

-Democrat Summary – https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf

-Washington Post – https://www.washingtonpost.com/us-policy/2022/08/12/inflation-reduction-act-house-vote/

 

Affordable Care Act

https://www.kff.org/policy-watch/five-things-to-know-about-renewal-of-extra-affordable-care-act-subsidies-in-inflation-reduction-act/

 

Taxes

https://www.marketwatch.com/story/the-inflation-reduction-act-would-send-80-billion-to-the-irs-some-tax-experts-wonder-if-its-enough-to-help-the-backlogged-agency-11659382128

 

Medicare

https://www.cnbc.com/2022/08/12/drug-prices-passage-of-inflation-reduction-act-gives-medicare-historic-new-powers.html

 

Budget Review

https://budgetmodel.wharton.upenn.edu/issues/2022/8/12/senate-passed-inflation-reduction-act