The budget reconciliation bill could save up to 3,900 lives per year by 2030, according to a new study from the nonpartisan think tank Energy Innovation, and a report by Rewiring America found that the tax incentives in the $369 billion bill dedicated to climate initiatives would save the average household $1,800 per year.
These benefits are in contrast to an estimate by the Joint Committee on Taxation suggesting the middle class will pay higher taxes as part of the bill’s “pay-for.” Treasury Secretary Janet Yellen disagrees with the assessment, writing to House Speaker Nancy Pelosi that “the legislation would either reduce or have no effect on the taxes due or paid by any family with income less than $400,000. In fact, the clean energy tax credits and the expanded premium tax credit will cut taxes for millions of Americans.”
Five former Treasury secretaries — including Hank Paulson, who served under President George W. Bush — also wrote a statement saying, “we support the Inflation Reduction Act which is financed by prudent tax policy that will collect more from top-earners and large corporations.”
The reconciliation package has two tax proposals: a 15% minimum tax on profits corporations report on their financial statements and a scaling down of the “carried interest” tax break used by private-equity managers. (Lives saved: Yahoo, Household savings: Yahoo, Yellen / Treasury Secretaries: Bloomberg $, Axios, Messaging battle: Bloomberg $)