The Inflation Reduction Act

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The Inflation Reduction Act is great news for working families! The bottom line is: more union jobs, more revenue by taxing the rich without raising taxes on working families, lower healthcare costs, fighting climate change.

What is the Inflation Reduction Act?

The Inflation Reduction Act is a landmark piece of legislation that aims to curb inflation and ease the burden on working families, passed by Congress and signed into law by President Joe Biden in August.

Job Creation
The bill will add 1.5 million new jobs by 2025 with major investments in our communities and infrastructure.[1]

  • Manufacturing reinvestment in energy and automotive and Made-in-America clean products
  • Upgrades to energy and grid infrastructure to support new energy projects


Lowering Healthcare Costs
With prescription drug makers getting rich off of out-of-control drug prices, this bill will bring down healthcare costs, particularly prescription drug costs.

  • Allows for Medicare to negotiate lower drug prices for seniors and people with disabilities.
  • Caps increases in prescription drug prices for Medicare recipients to the rate of inflation, putting a much-needed limit on how much manufacturers can raise costs.


Taxing the Ultra-Rich Without Raising Taxes for Working Families
While we've been struggling with inflation and rising costs in nearly all aspects of life, major corporations have seen massive profits - their biggest profit margins, in fact, since 1950[2]. This bill will help us fight back.

  • 15% minimum corporate tax on corporations with profits over $1 billion – expected to raise $222 billion for our economy.[3]
  • $80 billion investment in the IRS to strengthen enforcement and increase collections on the super rich.
  • No families making less than $400,000 per year will see their taxes raised. 




[1] https://laborenergy.org/fact-sheets/lep-analysis-of-the-inflation-reduction-act-key-findings-on-jobs-inflation-and-gdp/
[2] https://fortune.com/2022/08/25/us-corporate-profit-margins-second-quarter-widest-since-1950 

[3] Congressional Budget Office