Inflation Reduction Act Passes House of Representatives with Rep. Cleaver's Support

Press Release

Today, U.S. Representative Emanuel Cleaver, II (D-MO) voted in favor of the Senate Amendment to H.R. 5376, the Inflation Reduction Act, which passed the House of Representatives and will now go to President Biden to be signed into law. The transformative legislation takes historic steps to lower prescription drug, healthcare, and energy costs, invest in domestic clean energy production and manufacturing, and cut carbon emissions by 40 percent. Additionally, the bill will help fight inflation by reducing the national deficit through reforms to our broken tax system that ensure Wall Street, corporations, and the wealthiest Americans pay their fair share in taxes.

"Today, I'm proud to join my Democratic colleagues as we stand up to special interests and pass the Inflation Reduction Act to lower prescription drug and healthcare costs, make the largest investment in climate action in American history, and create millions of good-paying clean energy jobs of the future--all while reducing our national deficit by cracking down on tax evasion and forcing giant corporations and Wall Street to pay their fair share," said Congressman Cleaver. "This historic legislation will provide relief to American seniors who are going to pay less for their life-saving medications; to hardworking families who will see lower energy costs; to working class Missourians who will save money on their healthcare premiums; and to the public at large as the reduction in our national deficit helps to ease the heavy burden of inflation. The Inflation Reduction Act is an enormous and vital victory for regular families in Missouri and all across the nation, and I'm proud to have helped pass this legislation so that we can accelerate our transition to renewable energy and ensure our economy continues to grow in an equitable, strong, and sustainable fashion."

According to 126 leading economists--including seven Nobel Prize winners, three former chairs of the Council of Economic Advisers, and 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."

Specifically, the Inflation Reduction Act will lower prescription drug and healthcare costs by:

Finally allowing Medicare to negotiate prescription drug prices, giving the Secretary of Health and Human Services the ability to negotiate directly to lower the cost of prescription drugs and ensure that Medicare beneficiaries get the best possible deal on high cost medications;
Lowering out-of-pocket drug costs for seniors by implementing a $2,000 cap on out-of-pocket prescription drug costs for Medicare beneficiaries;
Implementing a new inflation rebate that requires drug companies who increase the price of their drugs beyond the rate of inflation to pay a rebate to Medicare for Part B and Part D drugs, which will help to prevent unnecessary and excessive price hikes on a wide variety of medications;
Extending enhanced subsidies for the Affordable Care Act, which will lock in lower health care premiums that save 13 million Americans, including 233,000 Missourians, an average of $800 a year;
Capping monthly insulin costs at $35 per month for Missourians on Medicare; and more.

The Inflation Reduction Act will combat climate change and lower energy costs by:

Making the largest investment in climate action in American history, with approximately $370 billion in funding and tax incentives to address climate change and accelerate America's transition to renewable energy;
Reducing carbon emissions by roughly 40 percent by 2030, which restores America's global leadership in the fight against climate change and puts our nation on a path to reach President Biden's goal of cutting carbon emissions in half by the end of the decade;
Providing tax breaks to American consumers who weatherize their homes, electrify their vehicles and home appliances, and take other steps to increase energy efficiency at home;
Boosting domestic manufacturing and clean energy production, with $60 billion for clean energy manufacturing across the full supply chain of clean energy and transportation technologies, which will help to alleviate energy costs and reduce the risk of future price shocks by bringing down the cost of clean energy;
Providing financing for energy infrastructure, next generation technologies, and energy projects that are critical to transitioning away from fossil fuels as swiftly as possible; and more.

The Inflation Reduction Act will reduce the national deficit by approximately $300 billion, helping to combat inflation, by:

Requiring the largest corporations to pay a 15% minimum tax, which would apply only to the approximately 150 corporations making over $1 billion in profits and paying less than 15% in taxes;
Imposing a 1% excise tax on corporate stock buybacks, which enrich CEOs and shareholders instead of creating new jobs or investing in American workers; and
Funding the IRS to crack down on wealthy tax cheats. Unlike honest, hard-working middle-class families, the top 1% is estimated to not pay $160 billion in owed taxes each year. Treasury Secretary Yellen has specifically directed

the IRS Commissioner to not use funding from the Inflation Reduction Act to increase the audit rate for households making under $400,000 a year, instead directing the IRS to focus on increased enforcement activity of high-wealth taxpayers and large corporations.

"With the passage of the Inflation Reduction Act, the United States is taking major steps to lower costs for American families, protect our planet for future generations, and ensure our economy is working for working people--not just the wealthy few," said Congressman Cleaver. "I'm proud to have voted for this historic legislation, and I look forward to the countless benefits it will bring to my constituents in the Fifth Congressional District of Missouri."

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