On Friday, Rep. Cindy Axne (IA-03) voted to send the Inflation Reduction Act, transformative legislation that will reduce health care, prescription drug, and energy costs for Iowans, to the President’s desk. This legislation also ensures that the nation’s largest corporations will pay their fair share and won’t raise taxes on small businesses or any individuals who earn less than $400,000 per year.
“I voted today to level the playing field for Iowans by lowering the costs for things Iowans need and use every day like prescription drugs and electricity while ensuring billionaire corporations are paying their fair share in taxes,” said Rep. Cindy Axne. “I first ran for office to help fix our broken health care system and lower prescription drug prices. This bill will lower the prices of prescription drugs by finally allowing Medicare to negotiate drug prices, capping the price of insulin at $35 per month, and limiting out of pocket costs through Medicare at $2,000 per year. In addition, it provides adult vaccines like shingles at no cost, limits price increases for existing drugs to the rate of inflation, and extends tax credits to save Iowans money on their insurance premiums.
“The Inflation Reduction Act also invests in clean energy production to reduce greenhouse gas emissions and address climate change, including more American manufacturing for wind and solar energy and tax credits to help Iowans improve energy efficiency at home or offset the cost of home solar or wind energy. And this bill will reduce the deficit by requiring large companies with more than $1 billion in profit to pay their fair share, and will not raise taxes on anyone making less than $400,000 annually or our small businesses,” continued Rep. Axne. “This bill includes support for Iowa farmers through conservation and my legislation to expand availability at the pump and extend tax credits for biofuels.”
The Inflation Reduction Act is historic legislation that will help lower families’ kitchen table costs, create millions of good-paying jobs, deliver the most significant action on climate in history, and dramatically reduce the deficit. The bill:
Saves people money on healthcare by:
- Lowering the cost of prescription drugs by:
- Allowing Medicare to negotiate prescription drug prices for the first time ever. The VA, which already has this power, pays less than half the price Medicare pays for drugs.
- Capping annual out of pocket Medicare Part D drug costs at $2,000, saving more than 20,000 Iowans an average of $1,000 a year.
- Establishing a $35 cap on a monthly supply of insulin for Medicare beneficiaries.
- Limiting Medicare drug price increases to the rate of inflation.
- Providing free adult vaccines through Medicare, Medicaid, and CHIP
- Extending the enhanced ACA premium tax credit subsidies through 2025, which are currently saving 67,000 Iowans an average of $800 in premiums annually.
Fights climate change by:
- Investing $370 billion in energy security and clean energy production.
- Driving a total of nearly $3.5 trillion of energy investment over 10 years, including nearly doubling annual wind and solar investment, and creating 900,000 jobs annually.
- Offering households tax credits and rebates for energy efficiency upgrades like heat pumps, better windows, clean vehicles, and residential solar installation.
- Expands biofuels use through new infrastructure investment at the pump and extended tax credits to support Iowa farmers and industry.
Is a responsible investment:
- Will lower the deficit by approximately $300 billion.
- Requires large corporations making more than $1 billion annually to pay at least a 15% tax rate.
- Taxes corporate stock buybacks to encourage companies to invest in their workers and the company while ensuring foreign investors don’t avoid US taxes.
- Gives the IRS the resources it needs to go after tax avoidance by the top 1% (who have more than $160 billion annually of unpaid taxes).
- Does not place any new taxes on individuals.