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Whitmer Celebrates Passage of Inflation Reduction Act
August 12, 2022
FOR IMMEDIATE RELEASE
August 12, 2022
Gov. Whitmer Celebrates Passage of Inflation Reduction Act
Legislation lowers the cost of prescription drugs and health care, boosts manufacturing and energy jobs, and reduces the deficit
LANSING, Mich. – Governor Gretchen Whitmer issued the following statement after the U.S. House of Representatives and the U.S. Senate passed the Inflation Reduction Act, legislation that lowers the cost of prescription drugs, health care, and energy, offers a middle-class tax credit to help families buy electric vehicles made in Michigan, and creates millions of manufacturing jobs.
“I am thrilled that the Inflation Reduction Act has been sent to the president’s desk. This commonsense legislation will lower the cost of prescription drugs, health care, and energy, and create and protect millions good-paying manufacturing jobs. My administration is working every day to lower costs, and this legislation will provide even more relief to families.
“This bill will keep more money in people’s pockets. For seniors on Medicare, out-of-pocket prescription drug costs will be capped at $2,000 a year and insulin will cost no more than $35 a month, saving lives. 13 million Americans will save $800 a year on premiums, and 3 million will be able to keep their insurance.
“Families will save at least $500 a year on energy costs, with lower utility bills and more affordable household appliances and home improvements. Middle-class Americans will get thousands of dollars in tax credits for buying electric vehicles made right here in Michigan.
“The bill will also surge clean energy production, lowering gas prices, reducing our reliance on foreign oil, and creating millions of manufacturing and energy jobs along the way. Getting this done will fight climate change and protect our precious natural resources—including our Great Lakes.
“The Inflation Reduction Act lowers costs and creates jobs. I want to thank the leaders in Michigan’s congressional delegation who worked hard to get this done and build on our economic momentum. Let’s keep moving Michigan forward.”
Inflation Reduction Act Background
- Lowers prescription drug costs for seniors: Out-of-pocket costs for seniors on Medicare will be capped at $2,000 a year, saving roughly 1 million people about $1,000 each year. Insulin costs for Medicare are capped at $35 per month.
- Lowers health care costs: Extends subsidies under the Affordable Care Act for 13 million people, saving them an average of $800 per year on premiums. Prevents 3 million people from losing their insurance.
- Lowers energy costs: Helps American families switch to cheaper, cleaner electricity, cutting their bills by $500 a year. All homes, even those who do not make the switch to clean energy, will see lower prices. Offers middle-class Americans tax credits for buying electric vehicles made in North America.
- Creates American jobs: Builds and refurbishes factories, creates millions of good-paying manufacturing jobs, and helps America build electric vehicles, batteries, solar panels, and so much more.
- Cuts the deficit by $300 billion: A fiscally-responsible investment to secure America’s financial future.
- Ensures billion-dollar-corporations pay more than $0 in income taxes: Enacts a 15% minimum tax for corporations that make over $1 billion in annual profits, many of whom currently pay 0%.
- Invests in communities: Funds infrastructure improvements and projects to reduce air and water pollution, protect natural resources.
Governor Whitmer’s Fiscally-Responsible Leadership
Since taking office, Governor Whitmer has signed 4 balanced, bipartisan budgets. She has paid down nearly $14 billion in debt, not raised taxes on working families by a dime, cut taxes for small business owners, and enacted economic development legislation empowering the state to compete for billions in investment and tens of thousands of jobs.
Governor Whitmer’s Actions to Lower the Cost of Prescription Drugs & Expand Health Care
Governor Whitmer has signed bipartisan legislation to protect Michiganders against surprise medical billing, lower the cost of prescription drugs by increasing pharmacy oversight, and foster more competitive health care pricing by increasing transparency. She worked across the aisle to extend Healthy Michigan to over 1 million Michiganders, expand access to telemedicine, and improve dental care for Michiganders covered by Medicaid.
Governor Whitmer’s Investments in Manufacturing & Energy
Since the governor took office, Michigan has announced 25,000 good-paying auto jobs, including 10,000 in 2022 alone. According to Bloomberg, Michigan is in the midst of a “manufacturing boom,” and is the #1 state for energy job creation.