Carper, Blunt Rochester celebrate Inflation Reduction Act

U.S. Sen. Tom Carper (D-Del.) and U.S. Rep. Lisa Blunt Rochester (D-Del.) gathered Aug. 15 at the University of Delaware College of Earth, Ocean and Environment in Lewes to highlight the passage of the Inflation Reduction Act of 2022.

In addition, Carper was presented with the American Clean Power Champion Award for his longtime support of environmental legislation, including his leadership in the passage of the Inflation Reduction Act.

Blunt Rochester said the act will provide historic investments in America today and in the future.

She said key components affecting constituents in Delaware include lower healthcare costs, such as continuation of subsidies for enrollment in the Affordable Care Act, and a provision to allow Medicare to negotiate drug prices with pharmaceutical companies and also cap out-of-pocket costs for seniors.

The act will lower energy costs, saving the average family from $500 to $1,000 a year, and will create millions of new clean manufacturing jobs, she said.

Blunt Rochester said the revenue to pay for provisions in the act will come from increased tax revenue by closing tax loopholes for those earning more than $400,000 annually. “We will use that revenue for investments and bringing down the deficit,” she said.

Carper said the act will also help pay down the deficit to fight inflation.

The expected revenue generated by the act is $737 billion, including $222 billion from a 15 percent minimum corporate tax and $265 billion from prescription drug pricing reform.

Investments totaling $437 billion include: energy security and climate change, $369 billion; Affordable Care Act extension, $64 billion; and Western drought resiliency, $4 billion.

Among the many provisions in the act are:

Expansion of Medicare benefits with free vaccines in 2023 and $35 a month insulin in 2023; caps out-of-pocket drug costs to an estimated $4,000 or less in 2024 settling at $2,000 in 2025.

Lowers energy bills by $500 to $1,000 per family each year.

Reduces carbon emissions by 40 percent by 2030.

Lowers healthcare costs by saving the average enrollee $800 per year in the Affordable Care Act marketplace, allows Medicare to negotiate 100 drug prices over the next decade and requires drug companies to rebate price increases higher than inflation.

Invests more than $60 billion to create millions of new clean manufacturing jobs.

Invests in disadvantaged communities by cleaning up pollution and taking steps to reduce environmental injustice with a $60 billion investment.

Closes tax loopholes used by the wealthy with a 15 percent minimum corporate tax, a 1 percent fee on stock buybacks and enhanced IRS enforcement.

Protects families and small businesses making $400,000 or less.