Jim Fossel’s Aug. 14 column completely distorts the focus and reach of the just-passed Inflation Reduction Act, historic legislation that meaningfully addresses our warming planet, the economic needs of the middle class and the grossly underresourced IRS. No Republicans supported its passage, including Sen. Susan Collins.
The legislation offers tax credits for residential clean-energy expenses and electric vehicle purchases, which will create millions of jobs in technologies of the future. Enhanced subsidies for Affordable Care Act enrollees will continue, and Medicare can begin negotiating drug prices with pharmaceutical companies. It will cap out-of-pocket costs for drugs and insulin for Medicare recipients as well.
“Improved tax collection, drug savings and deficit reduction would put downward pressure on inflation,” the Committee for a Responsible Federal Budget said July 30 regarding the Inflation Reduction Act.
And the tax increases Fossel refers to? Those consist of a 15 percent minimum tax on corporations making over $1 billion in profits, and a new excise tax of 1 percent on stock buybacks by corporations. Buybacks artificially raise stock prices and line the pockets of executives instead of investing in capital improvements, in their employees or in research and development.
Additional monies will come from savings realized through drug price negotiations, and a more robust IRS that will have the staffing and up-to-date technology to pursue the more labor-intensive cases involving wealthy tax evaders. It’s expected that the $80 billion invested in the IRS now will create $204 billion in taxes collected.
Every American should rejoice at the passage of this legislation – even Mr. Fossel.
Jennifer Jones
Falmouth
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