Tuesday, September 13, 2022
MADISON, Wis.—Today Americans from all walks of life, including many from the Badger State, will gather at the White House to celebrate the Inflation Reduction Act of 2022, a historic bill that will make meaningful reforms to lower costs for working families - bringing down prescription drug prices by giving Medicare the power to negotiate with drug companies, lowering insurance premiums, and reducing utility bills. Every Republican in Wisconsin’s Congressional delegation, including Senator Ron Johnson, sided with special interests and voted against this critical bill.
Meghan Roh, Opportunity Wisconsin Program Director:
“It’s hard to overstate just how much the Inflation Reduction Act will do to bring down costs for Badger State residents. Whether it’s lowering health care and energy costs, while also lowering the deficit, or making corporations pay their fair share in taxes–this historic law will go a long way to give Wisconsin workers and families the relief they need. We’re incredibly grateful to our elected leaders like President Biden, Senator Baldwin and Representatives Kind, Moore, and Pocan who have heard our voices and supported the Inflation Reduction Act.
“Unfortunately, the only voices Wisconsin Republicans seem to listen to are those of the wealthy and well-connected. Wisconsinites are struggling to make ends meet and instead of voting for a bill to bring down costs, Senator Johnson continues to prioritize himself and those like him. As someone who loves to talk about rising costs and inflation, Senator Johnson’s ‘no’ vote on the Inflation Reduction Act shows us that his words are nothing but empty rhetoric. It’s time for Senator Johnson to stop putting politics over the people of Wisconsin.”
Here’s how the Inflation Reduction Act will help Wisconsin workers and families, according to recent analysis:
Lower Health Care and Prescription Drug Costs
The Inflation Reduction Act will extend subsidies that help make Affordable Care Act coverage more affordable. Those subsidies—enacted under President Biden’s American Rescue Plan in 2021—were set to expire at the end of this year, but the Inflation Reduction Act extends them through 2025.
If you’re one of the roughly 43,000 Wisconsinites projected to lose ACA marketplace coverage if these subsidies had expired, the Inflation Reduction Act means you get to keep your insurance.
The Inflation Reduction Act will save an average middle class family of four in Wisconsin $6,259 on their yearly premiums.
The Inflation Reduction Act also reforms Medicare to lower drug costs for many of the more than 935,000 Wisconsin seniors with Medicare Part D coverage, which covers prescription drugs. Because of this law, over 29,000 Medicare Part D enrollees in Wisconsin will not pay more than $2,000 per year on prescription drug costs and nearly 59,000 Wisconsinites on Medicare will have insulin copays capped at $35 per month.
Fighting Climate Change and Saving Wisconsin Families Money on Energy
The Inflation Reduction Act represents the largest-ever national investment in fighting climate change and would accelerate private companies’ transition to clean energy technologies, expand domestic manufacturing of clean energy products, and boost American energy independence to make the country less reliant on foreign oil—all while making renewable energy products a financial winner for Wisconsin consumers.
The law delivers $80 billion in financial rebates for households to adopt clean energy products, such as EVs, solar panels, and more efficient heat pumps, including up to:
$8,000 for a heat pump for space heating
$4,000 for an upgraded breaker box
$2,500 for upgraded electric wiring
$1,750 for a heat pump water heater
$1,600 for insulation, air sealing, and ventilation
$840 for an electric stove, cooktop range, or oven
$840 for an electric clothes dryer
Raising Taxes on Corporations and Reducing the Deficit
The Inflation Reduction Act does not raise taxes on small businesses or Americans earning under $400,000 a year. In fact, it funds its health care and climate measures primarily by making large corporations pay their fair share.
The law also implements a 1% tax on stock buybacks, which is what happens when companies purchase shares of their own stocks—moves that often enrich already wealthy shareholders by driving up the value of the stock.
The law accomplishes all this while reducing the federal deficit by $300 billion.
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