August 12, 2022
Washington, D.C. — Today, U.S. Rep. Terri Sewell (AL-07) voted to pass the Inflation Reduction Act, a historic legislative package that will tackle inflation, drive down health care and energy costs, cut the deficit, and make the largest investment to combat climate change in United States history. The bill is fully paid for by making the wealthiest corporations begin to pay their fair share. Included in the bill is Rep. Sewell’s climate justice legislation to reduce pollution and promote carbon capture technology. The Inflation Reduction Act passed the House of Representatives today by a vote of 220-207 with every Democrat voting in favor of this significant legislation. Having passed the Senate last Sunday, the bill now heads to President Biden’s desk to be signed into law.
“With passage of the historic Inflation Reduction Act, Congressional Democrats have once again delivered a major victory for the American people, the State of Alabama, and our planet!” said Rep. Sewell. “This bill caps drug costs for Alabama seniors and extends critical health care subsidies to drive down costs for families, all without raising taxes on anyone making under $400,000 per year. Instead, this bill is fully paid for by making the wealthiest corporations pay their fair share.”
“The Inflation Reduction Act also marks a major turning point in our fight to advance environmental justice, reduce pollution, and combat climate change,” continued Sewell. “I was proud to see that my bill, the Carbon Capture and Sequestration Expansion Act, was included in the climate title of this bill. While my colleagues on the other side spread falsehoods to protect billion-dollar corporations and special interests, I’m proud that my Democratic colleagues and I once again came together to deliver legislation that puts people over politics. I know this legislation will make a world of difference for so many Alabama families.”
The Inflation Reduction Act takes bold action to lower health care costs and slash prescription drug costs for Alabamians. By extending the Affordable Care Act enhanced subsidies that are set to expire in January 2023 for three more years, the Inflation Reduction Act locks in lower health care premiums for 209,000 Alabamians who will save an average of $800 annually per person. It also empowers Medicare to negotiate lower prices for about 100 high cost, single-source drugs over the next decade. For Medicare beneficiaries, the bill caps out-of-pocket drug costs at $2,000 annually and caps the cost of insulin at $35 per month. Under this bill, if drug companies raise prices in Medicare faster than the rate of inflation, they are required to pay rebates back to Medicare for the difference, beginning in October 2022.
The Inflation Reduction Act is the largest investment to fight climate change, clean up pollution, and advance environmental justice in U.S. history. The bill’s $370 billion in climate resiliency investments would reduce U.S. carbon emissions by roughly 40 percent by 2030, and its $60 billion in environmental justice priorities will drive investments into disadvantaged communities. Notably, thanks to a provision cosponsored by Rep. Sewell, the bill reinstates the Superfund tax on crude oil and petroleum products to ensure that Superfund sites like the one in North Birmingham have the resources needed for environmental cleanup. The bill also includes Sewell’s climate justice legislation, the Carbon Capture and Sequestration Expansion Act, to reduce pollution and promote carbon capture technology.
Contrary to Republican falsehoods, the Inflation Reduction Act contains no new taxes on families making $400,000 or less and no new taxes on small businesses. The bill is fully paid for by strengthening IRS enforcement against wealthy tax cheats, closing tax loopholes exploited by the wealthiest few, and implementing a 15% corporate minimum tax—which applies only to the 150 corporations earning over $1 billion in profits. Thanks to these provisions, the Inflation Reduction Act is expected to reduce the deficit by over $300 billion over the next decade.
The Inflation Reduction Act enjoys bipartisan support from the American people, as well as a wide range of experts, climate activists, labor unions, business leaders and advocacy organizations. Over 7 in 10 voters overwhelmingly back the Inflation Reduction Act, including 95 percent of Democrats, nearly three-quarters of independents, and more than half of Republicans, according to a recent poll by Data for Progress.