What the ‘historic’ Inflation Reduction Act means for your bank account

Senate Democrats passed a sweeping climate, health care, and tax bill Sunday. If it becomes law, it could lower energy and health care costs for the average American during a time when budgets are tight.

Called the Inflation Reduction Act of 2022, or the IRA, the package puts hundreds of billions of dollars toward expanding health care access, reducing prescription drug costs, and lessening the effects of climate change. To finance that, it raises taxes on large, profitable companies and aims to better enforce tax collection efforts on the rich. Democrats say it adheres to President Joe Biden's vow not to raise taxes on households earning less than $400,000 per year or on small businesses.

Alicia Adamczyk | Yahoo Finance

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