Kilmer Votes to Lower Costs for Washingtonians, Combat the Climate Crisis

August 12, 2022

Washington, DC - Today, U.S. Representative Derek Kilmer (WA-06) voted for the Inflation Reduction Act of 2022, comprehensive legislation that aims to lower health care costs, reduce prescription drugs costs, lower energy costs for consumers, and combat the climate crisis.

The legislation is fully paid for and aims to reduce the deficit by strengthening tax enforcement, closing tax loopholes, and implementing a 15 percent corporate minimum tax - which applies only to the 150 corporations making earnings of over $1 billion in profits that pay less than 15% in taxes. In addition, the framework keeps the President's promise to ensure nobody earning less than $400,000 per year will pay more in taxes.

"Folks need a break. As countries around the world deal with inflation, we've got to take action to lower costs for the American people," said Rep. Kilmer. "The Inflation Reduction Act is a bill to do just that. It makes substantial changes to lower the costs of prescription drugs and by to reduce health care costs for millions of Americans. In addition, this bill will help our nation tackle the climate crisis and lower energy costs for consumers - providing tax credits and investments for energy projects and creating thousands of new jobs in the green energy sector. Importantly, it's paid for - requiring big corporations to pay their fair share of taxes and ensuring that no tax increases for families making under $400,000 a year. This legislation is an important step in the right direction to lower inflation and reduce costs for folks across our region."

The Inflation Reduction Act of 2022:

• Lowers the cost of health care.
• • The legislation aims to reduce the cost of health care for millions by extending Affordable Care Act (ACA) enhanced subsidies for three more years, locking in lower health care premiums that save 13 million people an average of $800 a year and lowering drug prices.
• Lowers the cost of prescription drug costs.
• • Under the legislation, for the first time ever, Medicare will be empowered to negotiate the price of prescription drugs. The legislation also requires drug companies to pay Medicare rebates if they raise prices faster than the rate of inflation starting in October 2022. In addition, the legislation creates a new out-of-pocket cap for Part D drug costs for Medicare beneficiaries of $2,000 a year, starting in 2025.
• Lowers the deficit and reduces inflation.
• • The legislation makes a historic down payment on deficit reduction of approximately $300 billion to fight inflation.
• Combats the climate crisis.
• • The legislation includes approximately $370 billion in investments to combat the climate crisis and reduce carbon emissions by roughly 40 percent by 2030 - making it the largest single climate investment in U.S. history.

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 legislation is supported by a wide range of advocacy organizations, including the AFL-CIO, Natural Resources Defense Council, League of Conservation Voters, AARP, UnidosUS, Small Business Majority, Protect Our Care and U.S. Conference of Mayors.

The President is expected to sign the legislation into law in the coming days.

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