Potential impact of Inflation Reduction Act

10 News Political Analyst explains what the Senate’s Inflation Reduction Act could mean for you

How the new legislation could impact you and your wallet

ROANOKE, Va. – The Senate just passed the largest climate investment bill in US history called the Inflation Reduction Act, but some critics think the name is misleading.

According to 10 News Political Analyst Edward Lynch, inflation relief for the average person because of this bill won’t be coming anytime soon.

“If this bill is going to have any impact at all. It’s going to be long term,” said Lynch.

There are three pillars of the bill: healthcare, energy and tax reform.

Part of the tax reform is a minimum corporate tax of 15% on all companies that generate one billion dollars or more in income.

“People think that big companies pay these tax increases, but what the companies have to do is pass on those increases to the consumers,” said Lynch.

The bill would also hire more IRS agents to regulate these tax changes.

Congressman Bob Good for Virginia’s fifth district said he is against the additional bill.

“There is almost 100 billion to hire 90,000 more IRS agents. I have never had anyone in the fifth district tell me, ‘Boy, I wish we had more IRS agents.’ The purpose of these IRS agents is to go after middle income Americans from an enforcement provisions to do a million more audits annually,” said Good.

Other Virginia Congressman representing Southwest Virginia, like Ben Cline and Morgan Griffith released these statements regarding the bill.

“The wrongly-named $740 billion “Inflation Reduction Act” will do nothing to actually bring down spiking prices that are hurting working families or reduce the ballooning federal deficit. This bill raises taxes on small businesses and families, spends over $350 billion on failed Green New Deal initiatives that will drive gas prices up even higher, and funds billions to double the size of the IRS to ramp up audits and spy on the working class. I will not in good conscience vote for this ill-conceived, disastrous bill.”

Congressman Ben Cline

“I will vote no on the Democrat reconciliation bill. Despite its title, it has nothing to do with inflation reduction. The Green New Deal-style policies it contains would make our current energy crisis worse. The bill’s price controls on prescription drugs are unconstitutional and would hinder medical innovation. Tax increases and IRS expansion would hit taxpayers at all income levels and limit economic growth... Instead of inflation reduction, Democrats aim to pass a liberal wish list that pursues their priorities at the expense of the average citizen.”

Congressman H. Morgan Griffith

Also in the bill – adjustments to Medicare negotiations and investments in solar panels and wind turbines.

Virginia Senators Mark Warner and Tim Kaine voted in favor of the bill, and Kaine took to the floor to voice his support for a section that would affect Southwest Virginian miners and their families.

“It will have a fully funded black lung benefit program that will help the many miners, 1 in 5 in central Appalachia whose day in and day out job exposes them to a horrible pulmonary disease,” said Kaine.

The Inflation Reduction Act will now move to the House for another vote.

Experts said it will pass, but it could take some time.

About the Author:

Sydney joined the WSLS 10 News team in June 2021.