Overview

Text of Bill Summary (Source: Politico) Bias:-1

Overall Effects

CBO: Estimated Budgetary Effects of H.R. 5376, the Inflation Reduction Act of 2022

Penn-Wharton Budget Model: Inflation Reduction Act: Preliminary Estimates of Budgetary and Macroeconomic Effects

Would reduce cumulative deficits by $248 billion over the budget window.
Would very slightly increase inflation until 2024 and decrease inflation thereafter.
- These point estimates are statistically indistinguishable from zero
- low confidence that the legislation will have any impact on inflation.
no impact on GDP by 2031 and an increase in GDP of 0.2 percent by 2050.

Tax Foundation Analysis: Details and Analysis of the Senate Inflation and Reduction Act Tax Provisions

Decrease the budget deficit by $304 billion
Reduce long-run GDP by -0.1%
Reduce wages by 0.1%
Reduce jobs by 30,000

Item by Item

Taxes

Corporate Minimum Tax of 15% (+313B)

Tax will fall heavily on manufacturers (JCT)

Closes Carried Interest Loophole (+14B)

IRS Enforcement Enhancement (+124B)

Specifics of Provisions (CRS)

Prescription Drugs (+288B)

Allows Medicare to negotiate prices

Caps Out of Pocket costs at $2,000

Energy (-369B)

Health Care

Extends ACA expanded subsidies 3 years (-64B)