President Biden Signs into Law Expansive Climate and Health Act at White House Signing Ceremony

"The Inflation Reduction Act is an historic victory for Los Angeles families and for our planet: delivering the investments we need to lower health care and prescription drug costs, reinvigorate American manufacturing, and make the largest climate investment in our nation's history," said Rep. Bass. The new law will fight inflation, create good-paying jobs, and drive our transition to a clean energy economy. To fund both the historic investments and the meaningful deficit reduction, it will ensure our tax system is fairer by cracking down on tax avoidance and evasion among the richest people and our most profitable corporations.

The Inflation Reduction Act will bring down costs for working Californians while building a cleaner economic future across the country, acting to:

• Lower prescription drug prices: empowering Medicare to negotiate the price of prescription drugs, preventing excessive price hikes and capping seniors' out-of-pocket drug costs at $2,000.
• Lower health care costs: reducing premium costs by extending ACA subsidies for three more years, locking in average annual savings of $800 per person.
• Lower energy costs: saving families an average of $1000 per year on their energy bills.
• Lower the deficit and help fight inflation: making an historic down payment on deficit reduction of approximately $300 billion.
• Make America's largest-ever climate investment: supporting domestic energy production, creating nine million good-paying union jobs, and reducing carbon pollution by roughly 40 percent this decade.

According to 126 leading economists - including seven Nobel Prize winners, three former chairs of the Council of Economic Advisers, two former Treasury Secretaries - the Inflation Reduction Act "will fight inflation and lower costs for American families while setting the stage for strong, stable, and broadly-shared long-term economic growth."

This law also honors President Biden's promise: no new taxes on families making $400,000 or less and no new taxes on small businesses. This legislation is paid-for by ensuring that large corporations and the ultra-wealthy pay their fair share:

• Strengthening IRS enforcement against wealthy tax cheats;
• Closing tax loopholes exploited by the wealthiest few; and
• Implementing a 15 percent corporate minimum tax on billion-dollar companies and a 1 percent tax on corporate stock buybacks.