U.S Inflation Reduction Act 2022
Government of US recently passed the “Inflation Reduction Act, 2022”. With this, it joins hands with central bank to decrease inflation. Inflation has reached to the level that was last witnessed 40 years ago. Fighting inflation is the top priority of policymakers in US.
- The US Federal Reserve has hiked policy rates by 225 basis points in last four monetary policy meetings.
- Government also aims to increase the revenue by imposing a minimum corporate tax, tax enforcement and fees on stock buybacks.
The Inflation Reduction Act of 2022
- This Act was passed to control inflation in United States, by lowering the deficit, prescription drug prices and by investing in domestic energy production.
- Bill was cleared by 117th United States Congress.
- US President signed it on August 16, 2022.
- Inflation Reduction Act is aimed at increasing government revenues by around USD 737 billion. It will also spend USD 437 billion for the period of 2022-31. This will lead to savings of USD 300 billion, ultimately lowering the deficits.
- It will also make large investment for addressing climate change in country. It will help United States in reducing net greenhouse gas emissions to 50% lower than 2005 levels by 2030.
- It will also make large expansion and modernization effort in Internal Revenue Service.
Inflation Reduction Bill was put on table, as a result of negotiations on proposed “Build Back Better Act”. It was cleared as an amendment to “Build Back Better Act”. It also substitutes the legislative text.
Category: International / World Current Affairs
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