On August 12th 2022 the 117th Congress of The United States of America passed the Inflation Reduction Act IRA 2022. The bill is the result of negotiations from the President Joseph R. Biden Jr., Build Back Better Plan. The IRA 2022 was finally passed with Senate Amendments that will be signed into law. A similar legislation with the title of: Inflation Prevention Act S. 3495 was introduced by Senator Tim Scott (R-SC).
While the complete passage of the IRA 2022 has caused agreements and disagreements between Republicans and Democrats, with majority Republican disagreement; I decided that it was important to take sometime upon reflections.
I think individuals who are earning above $400,000 per year will probably feel the pain because of tax reform inclusions. While the outcomes from the passage can only truly be measured upon implementations and measurable responses, we could say that the IRA 2022 could be paving the way for future planning and climate investments. That is beneficial for states that are high energy producers, and are looking for climate conservations, reductions from human and climate pollutants.
We could take the example of Texas State, TX, USA., which possesses that largest proven oil resources in the U.S. To connect with the traffic congestions, public and private transportations systems, roads and emission levels. The 7 states in America with largest proven oil reserves are: Texas, the Gulf of Mexico, North Dakota, New Mexico, Alaska, Oklahoma, and California (U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2020, 2022).
The IRA 2022 is also perceived as a preventative measure to curb the effects from Inflation. With the rising level of the Consumer Price Index (CPI-U) The monthly Inflation rate was at its peak in June 2022 at 1.3% that contributes to the yearly inflation of 9.1%. From this numerical analysis we can connect as to why some Republican and Democrats will arrive at consensus, to view the passage of the IRA 2022 as the right thing to do. Especially with the entry of a contraction phase, and the Federal Reserve – FEDS that prefer a healthy 2% rate of inflation. I appreciate that Representative Henry Cuellar (TX-D) stated the imperfections of the bill but did vote yes.
The Inflation Reduction Act 2022 may allow for the flow of money into the economy or not, giving opportunity for consumer expenditure, with lowering taxations for relevant income bracket populations. The IRA 2022 triggers investment into Pharmaceutical companies / Health sector, as prescription drug costs are lowered. I reflected upon the inclusion of prescription drug costs as associated with Medicaid and CHIP Coverage, and wondered if this inclusion was especially for individuals and families that may not qualify for existing programs?
But I also think that the IRA 2022 is somewhat lazy – in other words it could do more, have more additions. To connect with issues pertaining to job creation, homelessness and poverty. Because inflation cannot simply be curbed from eating off the consumer and taxing the wealthy. There has to be more done to create stability, and allow the flow of money in and out of the economy. And further to improve healthcare needs for various human health conditions and disease. I appreciate the advocacy from Florida Senator Marco Rubio (R-FL) who would like to see the Republican amendment for the provision of insulin for low-income families.
It is with these thoughts I would like to congratulate the President Biden Administration and all the U.S. Congress for your hard-work, dedications and commitments to improve the health and well-being of the American Public.
Reference: U.S. Energy Information Administration. (2022, January 13). U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2020. https://www.eia.gov/naturalgas/crudeoilreserves/
- Texas Tribune | Fort Worth Stretch Sets the Pace in List of State’s Most Congested Roads
- The Washington Times – Senator Marco Rubio | Democrats reject cheap insulin for the uninsured
- Related Blog Post | REFLECTIONS | THE INFLATION REDUCTION ACT.
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- Image 2 – Link Aerial view of Houston City, Texas, USA. Anyone that has visited will truly know why Houston has the nickname of Space City!!! 🙂 🚀
Publisher Notes: These thoughts were originally hand-written on August 13th 2022. All views and opinions are my own and are citied as per required. Thank you!
With Love & Kindness! 🇺🇸