Warren Highlights Priorities Secured in Inflation Reduction Act
Washington, D.C. — United States Senator Elizabeth Warren (D-Mass.) released the following statement highlighting policy priorities secured in the Senate’s Inflation Reduction Act:
“The Senate Democratic Majority advanced the Inflation Reduction Act – showing Americans that government can work for the people, not just special corporate interests. From adopting a plan to cut carbon emissions by 40% over the next eight years to authorizing Medicare to negotiate drug prices to raising corporate taxes for billionaire corporations, this historic legislation includes policies that I have long fought for. This bill will have a lasting impact on our planet and will help lower costs for Americans in Massachusetts and across our country.”
The Inflation Reduction Act contains several provisions that Senator Warren has championed through legislation or in requests to the Biden Administration and Senate leadership, including:
Tax Reforms and Revenue
- 15% Corporate Minimum Tax: In October 2021, Senator Warren, Senator Angus King, and Senate Finance Committee Chair Ron Wyden announced the Corporate Profits Minimum Tax, legislation to ensure America’s largest corporations pay at least 15% of their massive profits in federal taxes. An updated version of this proposal was included in the Inflation Reduction Act and will raise over $200 billion.
- IRS Tax Enforcement: In May 2021, Senator Warren introduced the Restoring the IRS Act to provide the Internal Revenue Service (IRS) with the resources it needs to go after wealthy tax cheats and close the tax gap. The Inflation Reduction Act includes $80 billion in IRS funding for high-income and corporate tax enforcement, as well as IT modernization that will help with both tax enforcement and taxpayer services.
- Free E-File: In July 2021, Senator Warren reintroduced her Tax Filing Simplification Act to simplify the tax filing process for millions of Americans, saving them hours and hundreds of dollars spent filing taxes. The Inflation Reduction Act establishes an IRS task force to look into developing and running an IRS-run free direct e-file tax return system. The funding for IRS IT modernization will also enable the IRS to develop further simplified tax filing tools.
- In March 2021, Senator Warren introduced the BUILD GREEN Infrastructure and Jobs Act, which would invest billions over ten years in state, local, and tribal projects to jumpstart the transition to all electric public vehicles and rail, including transit and school buses. The Inflation Reduction Act includes $1 billion for states, municipalities, tribes, and nonprofit school transportation associations to use for clean heavy-duty vehicles, like school and transit buses and garbage trucks. This funding comes on top of more than $10 billion for transitioning school and transit buses to low- or zero-emission vehicles that was provided in the bipartisan Infrastructure Investment and Jobs Act.
- In May 2021, Senator Warren introduced the Buy Green Act of 2021, calling for investments in federal procurement commitments over the next ten years to purchase American-made clean, renewable, and emission-free energy products for federal, state, and local use, such as for electrifying the entire federal fleet, including postal service vehicles. The Inflation Reduction Act includes over $9 billion for Federal procurement of American-made clean technologies to create a stable market for clean products, including $3 billion for the U.S. Postal Service to purchase zero-emission vehicles.
- Senator Warren previously called for a new Green Bank to mobilize funds in climate and green infrastructure investments across the country over 30 years, which would open up new markets for greater investment by working alongside existing federal authorities through direct spending, grants, and loans. The Inflation Reduction Act includes $27 billion for the greenhouse gas reduction fund, a clean energy technology accelerator to support deployment of technologies to reduce emissions, especially in disadvantaged communities.
- In 2021, Senator Warren introduced the National Institutes of Clean Energy Act of 2021 proposing the investment of billions over the next decade to establish and operate a new system of Clean Energy Institutes at the Department of Energy, modeled after the National Institutes of Health, dedicated to research and development (R&D) of advanced clean energy technologies to reduce carbon emissions and build climate resilience. The Inflation Reduction Act includes $2 billion for National laboratory infrastructure to accelerate breakthrough energy research.
Prescription Drug Pricing Reform
- The Inflation Reduction Act authorizes Medicare to negotiate the price of prescription drugs for the first time ever. Senator Warren has consistently called for legislative action to lower prescription drug prices. She criticized drug manufacturers for rapid and widespread price hikes as negotiations on drug pricing legislation stalled, slammed Big Pharma for presenting evasive and misleading information about drug price increases, and made the case for Medicare negotiation in multiple hearings. And she called out Big Pharma for its extensive lobbying efforts to block policies that would lower prescription drug prices for Americans.
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