PHOENIX — President Joe Biden made history this week by signing the Inflation Reduction Act into law from our nation's capitol - 2,300 miles away, here in Arizona, Phoenix Mayor Kate Gallego says the new law gets her stamp of approval.
"The Inflation Reduction Act gives us a lot of tools for the city directly and for our residents," explains Mayor Gallego. "Whether you want more affordable healthcare or more affordable energy, today's bill is good news for all of us."
But not everyone sees it that way; the law passed without any Republican votes in the House or Senate. Some members of the GOP have made the argument that it could make inflation even worse.
"It hands out tax credits like candy with no accountability," said House Republican leader Kevin McCarthy before the vote on Tuesday.
But Mayor Gallego disagrees, saying it will make a big difference in the community.
"The Inflation Reduction Act has significant investments to help people afford housing and medical care. As I talk to people in my community, there are significant challenges where housing and medical costs are driving everything that's happening in people's communities. Part of the reason we've seen inflation in this community is because of housing, and so we have to make strategic investments in these areas and we also have to support people who are really struggling through no fault of their own with the situation that we are in right now."
Mayor Gallego also says the $4 billion that's being allotted to help the west handle the ongoing drought situation would be a "gamechanger."
In a statement to ABC15, the Arizona Democratic Party says:
"Today, President Joe Biden signed the Inflation Reduction Act into law. This new law will help to reduce inflation and lower costs for Arizona families — and does not raise taxes on anyone making less than $400,000 a year.
“President Biden and Democrats are laser-focused on taking on special interests to fight inflation, and the Inflation Reduction Act is going to do just that by lowering costs on everything from prescription drugs to health care to home energy for Arizona families. Republicans sided with Big Pharma rather than Arizonans, voting against these cost cutting measures and blocked others that would cap insulin costs. Meanwhile, Democrats are tackling Americans’ top concerns — and we’re doing it by making huge corporations pay their fair share and without raising taxes on anyone making under $400,000.
Specifically, the Inflation Reduction Act:
- Lowers prescription drug costs by allowing Medicare to negotiate drug prices and capping out-of-pocket costs for seniors to $2,000.
- Combats the unprecedented drought in Western states and works to secure Arizona’s water future.
- Lowers energy costs by hundreds of dollars on average for many families, increases cleaner energy production, and reduces carbon emissions by roughly 40 percent in less than 10 years.
- Locks in lower health insurance costs by $800 on average for 13 million Americans who get their insurance through the Affordable Care Act exchanges.
- Fights inflation by reducing the deficit.
- Makes the tax code fairer by cracking down on the ultra-wealthy and large corporations so they pay their fair share in taxes.
- Does not raise taxes on families making $400,000 or less and no new taxes on small businesses."
The Republican National Committee released the following statement on the Inflation Reduction Act:
"With the stroke of a pen, Joe Biden will guarantee congressional Democrats’ careers will come to an end. Biden and Democrats raised taxes on hardworking Americans and gave $80 billion to the IRS to hire 87,000 new IRS agents. Americans will never forget that Biden and Democrats raised taxes during a recession."
Background:
- Joe Biden repeatedly promised that middle-class Americans would not “pay a penny more in taxes ” under his administration. This bill does just that.
- According to the Joint Committee on Taxation, the Biden Tax Hikes will raise taxes on Americans making as little as $20,000/year.
- The Bidenflation Scam’s $7,500 electric vehicle tax credit amounts to nothing more than a giveaway to the wealthy, subsidized by lower- and middle-income Americans.
- The Bidenflation Scam includes $80 billion for 87,000 new IRS agents at an agency that has a history of auditing Americans earning $25,000/year at five times the rate of other income groups."
For more specifics on the Inflation Reduction Act, click here.
