Meghan Roh, Opportunity Wisconsin Program Director:
“It’s hard to overstate just how much the Inflation Reduction Act will do to bring down costs for Badger State residents. Whether it’s lowering health care and energy costs, while also lowering the deficit, or making corporations pay their fair share in taxes–this historic bill will go a long way to give Wisconsin workers and families the relief they need. We’re incredibly grateful to our elected leaders like Senator Baldwin and Representatives Kind, Moore, and Pocan who have heard our voices and supported the Inflation Reduction Act.
“Unfortunately, the only voices Wisconsin Republicans seem to listen to are those of the wealthy and well-connected. Wisconsinites are struggling to make ends meet and instead of voting for a bill to bring down costs, Senator Johnson continues to prioritize himself and those like him. As someone who loves to talk about rising costs and inflation, Senator Johnson’s ‘no’ vote on the Inflation Reduction Act shows us that his words are nothing but empty rhetoric. It’s time for Senator Johnson to stop putting politics over the people of Wisconsin.”
Here’s how the Inflation Reduction Act will help Wisconsin workers and families, according to recent analysis:
Lower Healthcare and Prescription Drug Costs
- The Inflation Reduction Act will extend subsidies that help make the Affordable Care Act more affordable. Those subsidies—enacted under President Biden’s American Rescue Plan in 2021—are set to expire at the end of this year, but the Inflation Reduction Act extends them through 2025.
- If you’re one of the roughly 43,000 Wisconsinites who has been able to afford health insurance from the ACA marketplace thanks to these subsidies, the Inflation Reduction Act means you get to keep your insurance. Without the extension of the subsidies, you’d be at risk of losing that coverage in 2023.
- The extension of the subsidies also means that about 10 million Americans—including an estimated 150,000 Wisconsin residents—who’ve had access to more affordable ACA insurance plans won’t have to suddenly pay more in 2023.
- The Inflation Reduction Act also reforms Medicare to lower drug costs for many of the more than 935,000 Wisconsin seniors with Medicare Part D coverage, which covers prescription drugs.
Fighting Climate Change and Saving Wisconsin Families Money on Energy
- The Inflation Reduction Act represents the largest-ever national investment in fighting climate change and would accelerate private companies’ transition to clean energy technologies, expand domestic manufacturing of clean energy products, and boost American energy independence to make the country less reliant on foreign oil—all while making renewable energy products a financial winner for Wisconsin consumers.
- The law delivers $80 billion in financial rebates for households to adopt clean energy products, such as EVs, solar panels, and more efficient heat pumps, including up to:
- $8,000 for a heat pump for space heating
- $4,000 for an upgraded breaker box
- $2,500 for upgraded electric wiring
- $1,750 for a heat pump water heater
- $1,600 for insulation, air sealing, and ventilation
- $840 for an electric stove, cooktop range, or oven
- $840 for an electric clothes dryer
Raising Taxes on Corporations and Reducing the Deficit
- The Inflation Reduction Act does not raise taxes on small businesses or Americans earning under $400,000 a year. In fact, it funds its healthcare and climate measures primarily by making large corporations pay their fair share.
- The law also implements a 1% tax on stock buybacks, which is what happens when companies purchase shares of their own stocks—moves that often enrich already-wealthy shareholders by driving up the value of the stock.
- The law accomplishes all this while reducing the federal deficit by $300 billion.