If you thought the recent price increase at your neighborhood store was inflation’s last flop, think again. The Inflation Reduction Act (“IRA”), which was signed into law by President Biden on August 16, 2022, is estimated to raise $739 billion over the decade. The IRA is financed primarily by several targeted tax increases. Revenues will go toward initiatives designed to combat climate change, reduce the nation’s debt, and, hopefully, reduce inflation. The IRA is a starkly diminished version of the proposed “Build Back Better Act,” which passed the House in 2021 but never received a vote in the Senate. Most of the tax proposals in the Build Back Better Act didn’t make it into the new bill, but a few did.
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