Remarks by President Biden on the Inflation Reduction Act of 2022
JULY 28, 2022
Location: Not determined

12:58 P.M. EDT
 
THE PRESIDENT:  Good afternoon.  Yesterday, I spoke with both Senator Schumer and Manchin and offered my support for a historic agreement to fight inflation and lower costs for American families.  It’s called the Inflation Reduction Act of 2022.  Some of you will see a lot of similarities between the beginning — (laughs) — of the Build Back Better initiative.  It’s not all of it, but we’ve moved a long way.
 
I’ll be going into detail in a minute. 
 
But simply put, the bill will lower healthcare costs for millions of Americans.  It will — and it will be the most important investment — not hyperbole — the most important investment that we’ve ever made in our energy security, and developing cost savings and job-creating clean energy solutions for the future.  It’s a big deal.
 
It’ll also, for the first time in a long time, begin to restore fairness to the tax code — begin to restore fairness — by making the largest corporatenations [sic] — the largest corporations in America pay their fair share, with any — without any new taxes on people making under $400,000 a year. 
 
Experts — even some experts who have criticized my administration in the past — agree that this bill — this bill will reduce inflationary pressures on the economy.  This bill will, in fact, reduce inflationary pressure on the economy.
 
It’s a bill that costs — will cut your cost of living and reduce inflation for — and it lowers the deficit.  It strengthens our economy for — in the long run as well. 
 
This bill has won the support of climate leaders like former Vice President Al Gore who said the bill is, quote, “long overdue and a necessary step to ensure the United States takes decisive action on the climate crisis that helps our economy and provides leadership for the world by example.” 
 
Inflation hawks like former Secretary of Treasury Larry Summers said, quote, “This bill is fighting inflation.”  Let me say it: “This bill is fighting inflation.”
 
Progressive leaders like Senator Elizabeth Warren said, quote, this bill — “This is a bill that truly is about fighting inflation, bringing down the cost for families, and putting our country on a sounder economic footing.” 
 
Here’s how it works:
 
First, the bill finally delivers on a promise that Washington has made for decades to the American people.  We are giving Medicare — we’re giving Medicare the power to negotiate for lower prescription drug prices, which means seniors and consumers will pay less for their prescription drugs.  Medicare will save, in the process, about $290 billion.  And, in addition, it also changes the circumstances for people on Medicare by putting a cap of a maximum $2,000 a year.  They have to pay no more than $2,000 a year, no matter how many prescriptions they have, for all their prescription drugs –which is especially important for people with cancer and long-term diseases.  It’s a Godsend.  It’ll literally be a Godsend for many families. 
 
Second, the bill locks in place lower healthcare premiums for the next three years for millions of families that get coverage under the Affordable Care Act.  That will mean an average savings of $800 a year for 13 million people.
 
Third, it invests $369 billion — granted, I called for 500-plus — but it invests $369 billion to secure our energy future and to address the climate crisis, bringing down family energy bills by hundreds of dollars by providing working families tax credits.  It gives folks rebates buy — to buy new and efficient appliances, to weatherize their homes, and tax credits for heat pumps and rooftop solar. 
 
It also gives consumers a tax credit to buy any electric vehicle or fuel cell vehicle, new or used, and a tax credit for up to $7,500 if those vehicles were made in America. 
 
This investment in environmental justice is real.  It also provides tax credits that will create thousands of good-paying jobs — manufacturing jobs on clean energy construction projects, solar projects, wind projects, clean hydrogen projects, carbon capture projects, and more — by giving tax credits for those who build these projects here in America. 
 
Now, let me be clear: This bill would be the most significant legislation in history to tackle the climate crisis and improve our energy security right away.  And it’ll give us a tool to meet the climate goals that are set — that we’ve agreed to — by cutting emissions and accelerating clean energy.  A huge step forward. 
 
Fourth, this bill requires the largest corporations to begin to — begin to pay toward their fair share of taxes by putting in place a 15 percent corporate minimum tax.