HR 5376 · Inflation Reduction Act of 2022

Legislation· Aug 2022

HR 5376 Signed into law

Inflation Reduction Act of 2022

Raises taxes on corporations and high earners, funds clean energy and healthcare expansions, cuts deficit by $58 billion.

Tradeoff

Raises $108.7 billion in new revenue from corporate taxes and enforcement, then spends much of it on clean energy, healthcare subsidies, and drug price negotiation. Net result cuts the deficit by $58.1 billion over ten years.

What's in it

See official bill text

Reduces the deficit by $58.1 billion over 2022–2031.

This law both raises taxes (especially on high earners and large corporations, through enforcement and a 15 percent corporate minimum tax) and increases spending (on clean energy, healthcare, and other programs), with the tax increases exceeding spending increases by $58.1 billion over the decade.

Estimated Budgetary Effects of Public Law 117-169, to Provide for Reconciliation Pursuant to Title II of S. Con. Res. 14 · Sep 2022

The selected provisions produce mixed effects across four tables showing different combinations of tax law changes, with aggregate revenue effects ranging from $8.8 billion (increase) to $12.8 billion (decrease) depending on provision scope.

In table 1 (Subtitle A Parts 3–5, C, D), the $20k–$30k bracket sees a 9.4% average tax decrease, the $30k–$40k bracket a 4.0% decrease, and the $40k–$50k bracket a 2.3% decrease; households over $200k see tax increases of 0.8% to 1.1%. In table 2 (different provision mix), the $20k–$30k bracket sees a 9.9% decrease and the $100k–$200k bracket a 0.4% decrease; tables 3–5 show smaller and more mixed effects across brackets.

Who benefits

Households earning $20,000 to $100,000 receive tax decreases; the $20,000–$30,000 bracket shows decreases of 9.4% to 9.9% of their tax liability in tables 1 and 2.

Who pays

Households earning $200,000 to $1,000,000 and over see tax increases in tables 1 and 3; households earning $20,000 to $100,000 see tax decreases across all tables.

Distributional Effects Of Selected Provisions From Subtitle A, Subtitle C, And Subtitle D Of Title I – Committee On Finance Of An Amendment In The Nature Of A Substitute To H.R. 5376, “An Act To Provide For Reconciliation Pursuant To Title II Of S. Con. Res. 14," As Passed By The Senate On August 7, 2022 · Aug 2022

The House passed this 220-213 on November 19, 2021. The Senate passed it 50-50 on August 7, 2022, with Vice President Harris breaking the tie. The House then approved the Senate version 220-207 on August 12, 2022.

House
Introduced
(Sep 27, 2021)
House
On
Build Back Better Act
Failed(Roll #384 · Nov 19, 2021)
208 yeanay 220
House
Passage of the bill
Build Back Better Act
Passed(Roll #385 · Nov 19, 2021)
220 yeanay 213
House
to Reconsider
Build Back Better Act
Passed(Roll #386 · Nov 19, 2021)
217 yeanay 105
Senate
Received from the House
Received(Aug 2, 2022)
Senate
On the
Motion to Proceed to H.R. 5376
Motion to Proceed Agreed to(Roll #287 · Aug 6, 2022)
50 yeanay 50
Senate · Amended
Senator Schumer's
Agreed to by (S.Amdt. 5194 · Aug 7, 2022)
No individual votes were recorded.
Senate
On the Motion
Scott (FL) Motion to Commit H.R. 5376 to the Committee on Finance with Instructions
Motion Rejected(Roll #297 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Collins Motion to Commit H.R. 5376 to the Committee on Finance with Instructions
Motion Rejected(Roll #302 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Rubio Motion to Commit H.R. 5376 to the Committee on the Judiciary with Instructions
Motion Rejected(Roll #304 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Scott (SC) Motion to Commit H.R. 5376 to the Committee on Finance with Instructions
Motion Rejected(Roll #307 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Cruz Motion to Commit H.R. 5376 to the Committee on Homeland Security and Governmental Affairs with Instructions
Motion Rejected(Roll #315 · Aug 7, 2022)
49 yeanay 51
Senate
On the Motion
Cruz Motion to Commit H.R. 5376 to the Committee on the Judiciary with Instructions
Motion Rejected(Roll #316 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Hoeven Motion to Commit H.R. 5376 to the Committee on Finance with Instructions
Motion Rejected(Roll #317 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Blackburn Motion to Commit H.R. 5376 to the Committee on Agriculture, Nutrition, and Forestry with Instructions.
Motion Rejected(Roll #318 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Rubio Motion to Commit H.R. 5376 to the Committee on Health, Education, Labor and Pensions with Instructions
Motion Rejected(Roll #319 · Aug 7, 2022)
50 yeanay 50
Senate
On the Motion
Hagerty Motion to Commit H.R. 5376 to the Committee on the Judiciary with Instructions
Motion Rejected(Roll #322 · Aug 7, 2022)
50 yeanay 50
Senate
Passage of the bill
H.R. 5376, As Amended
Bill Passed(Roll #325 · Aug 7, 2022)
50 yeanay 50
House
On
To provide for reconciliation pursuant to title II of S. Con. Res. 14
Passed(Roll #420 · Aug 12, 2022)
220 yeanay 207
House
Sent to the President
(Aug 15, 2022)
White House · Signature
Signed
Joe Biden (D)
Enacted
Became law(Aug 16, 2022)

Final passage· 117th Congress · 2021–2023