The Update: Everything Happening in Harrisburg and DC — August 4, 2022



We are happy to see that a deal has been reached to address growing inflation by reducing prescription health care costs, taxing corporations and the ultra-rich, and combatting climate change and reducing energy costs. We call on the United States Senate and House of Representatives to take immediate action to pass this legislation and send it to President Biden’s desk. See below for our analysis of this legislation.

And, a big thank you to everyone who supported Keystone Research Center and PA Budget and Policy Center on Give Day this week. Your support helps us to do this important work to promote the policies that will create an economy that works for everyone in Pennsylvania. (And if you missed it, it’s not too late: Click here to give!)

Thank you for supporting our work,

Stephen Herzenberg
Executive Director

The Inflation Reduction Act of 2022 — A Major Step Forward for the US and the World


Stephen Herzenberg and Marc Stier | Blog Post | 7/29/22

This legislation, along with the Infrastructure law and the American Rescue Plan, again shows that Democrats are committed to meeting the needs of everyone in the country, no matter where we live or what we look like or whether we are rich and poor, by using the power of the government. Only by acting together can we ensure that we have the roads and bridges and public transit critical to our economy, affordable health care, and clean energy. And only by acting together can we give our children and grandchildren the most important thing we can leave them: a healthy planet. In addition, this legislation is fully paid for by insisting that wealthy corporations pay what they owe for the public goods that are critical to their operations. The Inflation Reduction Act of 2022 does three very important things:

  1. Reforms our unfair tax system to prevent corporations from using loopholes to get out of paying their fair share and ensures that the ultra-rich pay taxes on income from investments just as workers’ pay on wages.
  2. Reduces health care costs by extending subsidies for people who purchase their insurance through the Affordable Care Act exchanges and allows Medicare to negotiate for lower prescription drug prices.
  3. Reduces energy costs and carbon pollution while growing good sustainable economy jobs. The bill creates incentives for consumers and businesses to invest in energy efficient and clean energy products, lowering their energy bills and boosting the economy

The bill is estimated to bring in $739 billion in revenue and will invest $433 billion to lower health care costs and combat climate change.