WASHINGTON, D.C. (WWNY) – The Inflation Reduction Act of 2022, passed Sunday by the Senate, has been called the largest climate investment in U.S. history.
The bill invests nearly $370 billion in climate and energy investments to slow global warming. It moderates pharmaceutical costs and taxes immense corporations.
According to the $740 billion legislative package, it would reduce the national deficit and boost the Internal Revenue Service’s ability to collect.
But would it, as its name suggests, reduce inflation?
Jehu Mette, a visiting assistant professor of economics at Clarkson University, says in the short term, the bill will do relatively little to reverse the trend of inflation being felt by Americans day by day.
“In the relatively medium to long-term, it’s going to reverse some of the adverse effects that earlier policies have had on U.S. inflation in that’s mostly going to be done in reducing national budget deficit,” said Mette.
During a teleconference Monday afternoon, Senate Majority Leader Chuck Schumer (D. – NY) called it the most significant piece of legislation that Congress has passed in decades.
“The average New Yorker by 2030 will save about $1,000 on their heating and electric bills. The average New Yorker will save hundreds of dollars because appliances will be cheaper and use electricity,” he said.
Republican leaders, including north country Congresswoman Elise Stefanik, have been outspoken about how the plan would have little impact and instead raise taxes.
In a statement to 7 News, Stefanik’s senior advisor says she will oppose the bill and wrote, “Democrats’ latest proposal to spend hundreds of billions more, while increasing taxes on middle class families, will make the inflation crisis even worse.”
The House of Representatives is expected to vote on the bill Friday.
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