![]() ![]() The $485 billion of new costs would be offset with $790 billion of additional revenue and savings over a decade. Accompanying this new spending would be various regulatory and permitting reforms to help reduce energy costs outside of the reconciliation package. ![]() The package would also increase health care spending by nearly $100 billion, mainly by extending the American Rescue Plan's temporarily-expanded Affordable Care Act (ACA) premium tax credits for an additional three years, through 2025. ![]() The package includes $386 billion of climate and energy spending and tax breaks – mainly for new or expanded tax credits to promote clean energy generation, electrification, green technology retrofits for homes and buildings, greater use of clean fuels, environmental conservation, and wider adoption of electric vehicles, among other purposes. *IRS funding provision involves an $80 billion expenditure over ten years, which CBO estimates will yield $204 billion in additional revenue for a net savings of $124 billion.įigures are rounded, based on available information as of, and subject to change. Memo: Deficit reduction with permanent ACA subsidy extension Methane Fee, Superfund Fee, Other Revenue Part D Re-Design, LIS Subsidies, Vaccine Coverage Inflation Reduction Act Summary PolicyĪir Pollution, Hazardous Materials, Transportation and InfrastructureĬonservation, Rural Development, Forestryīuilding Efficiency, Electrification, Transmission, Industrial, DOE Grants and LoansĮxtension of Expanded ACA Subsidies (three years) Along with other elements of the bill, it is likely to reduce inflationary pressures and thus reduce the risk of a possible recession. ![]() Unlike prior versions of this reconciliation bill, such as the House-passed Build Back Better Act, this legislation would reduce deficits. Overall, CBO estimates the legislation includes $790 billion of offsets to fund roughly $485 billion of new spending and tax breaks (as negotiators account for the policies, it includes $739 billion of offsets and $433 billion of investments). The legislation would generate nearly $300 billion of net revenue over a decade, mostly from improved tax compliance and the spillover effects of higher wages as a result of lower health premiums - neither of which are tax increases - along with early revenue collection as corporations shift the timing of certain payments. Once fully phased in, the plan would also slightly cut net taxes by about $2 billion per year – with expanded energy and climate tax credits roughly matching the size of new tax increases. The Congressional Budget Office (CBO) just released its score of the Inflation Reduction Act (IRA) of 2022, legislation which would use Fiscal Year (FY) 2022 reconciliation instructions to raise revenue lower prescription drug costs fund new energy, climate, and health care provisions and reduce budget deficits.īased on the CBO score, the legislation would reduce deficits by $305 billion through 2031 – including over $100 billion of net scoreable savings and another $200 billion of gross revenue from stronger tax compliance.īecause the prescription drug savings would be larger than new spending, CBO finds the legislation would modestly reduce net spendingby almost $15 billion through 2031, including by nearly $40 billion in 2031. Update (): The Congressional Budget Office has released an official score of the final version of the Inflation Reduction Act, finding it will reduce deficits by $238 billion over a decade. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |