By signing the Inflation Control Act, President Biden is fulfilling a promise to build an economy that works for working families and small businesses. The Inflation Reduction Act makes urgent investments to reduce prescription drug costs, health care costs, energy costs, and create opportunities for America’s 33 million small businesses and innovative start-ups. This is the most positive action we have taken to tackle the climate crisis. Reducing the deficit helps the Fed tackle inflation. The ultra-rich and large corporations are expected to pay their fair share, and small businesses and families earning less than $400,000 a year pay no more in taxes.
President Biden and Congressional Democrats defeated special interest groups to pass this historic law, benefiting American families and small businesses to grow the economy from the bottom up and middle out.
Small business cost savings
The Inflation Reduction Act cuts costs for small businesses by keeping health care costs down, supporting energy-saving investments, and strengthening supply chain resilience.
Maintains critical support for small business healthcare costs. The Inflation Reduction Act will maintain the American Rescue Plan premium tax credit support for Affordable Care Act (ACA) plans by extending it through 2025. A recent analysis of 2021 tax data published by the Department of Health and Human Services found the ACA Marketplace to be a key source of information for 2.6 million small business owners and the self-employed. Additionally, small business owners and the self-employed make up 25% of working-age adult marketplace registrants. Since the implementation of the ACA, the self-employed uninsured rate has dropped dramatically from 30% in 2013 to 20.5% in 2019, and 1.3 million uninsured self-employed adults Decreased.whole, About 13 million Americans will save an average of about $800 a year on health insurance premiums compared to paying without the Inflation Reduction Act. This investment will continue to spur new business start-ups and job creation as entrepreneurs can take the leap to start a business without the risk of going uninsured.
Reduce energy costs for small businessesThe Inflation Reduction Act contains many provisions for small business owners to save energy costs.
- Small businesses can receive a tax credit that covers 30% of the cost of switching to low-cost solar power. This reduces operating costs and protects against the volatile energy prices that currently weigh on small businesses.
- Small business building owners can receive tax credits of up to $5 per square foot to support energy efficiency improvements that reduce utility bills.
- Small businesses that use heavy vehicles such as trucks and vans can benefit from a tax credit that covers 30% of the cost of purchasing clean commercial vehicles such as electric and fuel cell models.
Small businesses can save on energy costs and help address the climate crisis. The increasing frequency and magnitude of natural disasters are putting more small businesses and communities at risk of devastation and disruption. The Inflation Control Act’s historic action against climate change brings economic stability and growth to Main Street across the nation.
Lower the deficit to fight inflation. The Inflation Reduction Act has been well paid and will help reduce the deficit over the next decade. This builds on the significant debt reductions made under the Biden Harris administration. The administration is expected to cut the deficit by more than $1.5 trillion this year after he cut it by more than $350 billion last year. This would be the largest decline in a year in our nation’s history, and the deficit would be lower than the Congressional Budget Office predicted before the passage of the US bailout plan. Many leading economists and commentators also believe that the Inflation Reduction Act will ease inflationary pressures by adding hundreds of billions of dollars in additional deficit reductions to the deficit reductions achieved so far under President Biden. It claims to help When small businesses operate at more stable prices in costs from gas to wages, entrepreneurs find it easier to plan and grow their businesses.
Reducing prescription drug costs for older people. Many small businesses are owned by seniors. An American pays two to three times more for prescription drugs than people in other wealthy countries. High prices contribute to racial and ethnic health inequalities. The Reducing Inflation Act helps bridge the gap in access to medicines by improving prescription drug coverage and lowering Medicare drug prices. law:
- Limit the amount seniors have to pay for prescription drugs purchased at pharmacies to $2,000 annually.
- Limit the amount seniors have to pay for insulin to $35 a month supply.
- Provides Medicare beneficiaries access to many additional free vaccines, including the shingles vaccine.
- It would further reduce the cost of prescription drugs for seniors by allowing Medicare to negotiate the price of expensive drugs and requiring Medicare to pay rebates if drug companies raise prices faster than inflation.
Expanding economic opportunities for SMEs
The Inflation Reduction Act will help small businesses grow and create high-paying jobs in communities across America.
Double the Small Business Research and Development (R&D) Tax CreditPre-revenue startups create jobs and support economic growth through research, discovery and innovation. However, they do not have as much access to R&D tax credits as large companies. By raising the refundable R&D tax credit for small businesses from $250,000 to $500,000, the measure helps level the playing field and encourage high-impact R&D. Starting in 2023, small businesses can use this credit to reduce payroll taxes and other business costs by up to $500,000 annually. This allows innovation and commercialization to solve global problems, create jobs and move the economy forward. .
Improve America’s manufacturing and competitiveness. By spurring U.S. supply chains spanning technologies such as solar, wind, carbon capture, and clean hydrogen, the legislation will help spur U.S. supply chains at a time when nations around the world are racing to lead the clean energy economy. Open opportunities for small businesses and invest in American workers and industries. The legislation includes tax incentives for the manufacture of U.S.-made materials such as batteries, solar and wind components, and technologies such as carbon capture systems and electrolysers to produce hydrogen. I’m here. The law also includes important domestic procurement requirements, such as the use of domestic steel in wind projects, as well as general wage and apprenticeship requirements to ensure the creation of well-paid jobs.
Supporting the local clean energy economy: The legislation will seed state and local clean energy financing agencies to create new clean energy and sustainability accelerators to support the deployment of distributed zero-emission technologies such as heat pumps, community solar and EV charging. . This accelerator expands opportunities for clean energy entrepreneurship while prioritizing his 50%+ investment in disadvantaged communities.
Expanding opportunities in rural areas. This law significantly expands the Rural Energy for America program. The program will support rural small businesses and agricultural producers with clean energy and energy efficiency upgrades. The U.S. Department of Agriculture estimates the expansion will cover her more than 41,500 small businesses and farms. The legislation also provided more than $9 billion to support rural electric cooperatives serving more than 21 million businesses, homes and farms, and boosting resilience, reliability and affordability through clean energy projects and more. We are increasing the price.
Equalization of competitive conditions due to revision of tax law
President Trump and Congressional Republicans’ tax legislation of 2017 has only exacerbated an unfair tax system. The Inflation Reduction Act of 2022 is an important step towards fairer tax law. Earn money by:
- Making sure the ultra-rich and big corporations pay the taxes they already owe.
- Crack down on large, profitable companies with more than $1 billion in annual profits
- Encourages corporate investment by imposing a surcharge of 1% on corporate share buybacks.
Small businesses and working families will have easier access to the benefits they are entitled to under the tax code and have their questions answered quickly and efficiently, thanks to reform investments in the Internal Revenue Service. I can. Treasury Secretary Janet Yellen told the Internal Revenue Service to use the additional funding provided by the bill to reduce the audited $400,000 threshold for small business or household share against historical levels. We have instructed it not to increase below.