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Speaker 1: Yeah, finally, it is the bill that waited for Senators

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Speaker 1: Joe Manchin and Kirsten Cinema to sign off in the end.

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Speaker 1: A lot of grounds, So let's get into it. Joining

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Speaker 1: us live as Bloomberg Tax reporter Laura Davison, Laura, thank

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Speaker 1: you so much for joining us. Let's start with inflation

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Speaker 1: and taxes. So Senate majority of either Chuck Schumer says

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Speaker 1: it reduces inflation. How uh, well, you know, Senator Schumer

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Speaker 1: said that, but all of the estimates that economsts have

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Speaker 1: done said it really actually does little to nothing about inflation.

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Speaker 1: The reason they called the Inflation Reduction Act is that

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Speaker 1: is something that Democrats are really worried about going into

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Speaker 1: the mid terms, which are in November. So this is

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Speaker 1: sort of an interesting things is very key for um

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Speaker 1: Joe Manchin, who was one of the crucial senators that

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Speaker 1: Moderate who they weren't sure if they were he was

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Speaker 1: going to sign onto the bill. He did. But in

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Speaker 1: terms of inflation, not expecting to see any bump in

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Speaker 1: the short term and in the long term it's you know,

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Speaker 1: just a couple of tents of a percent that this

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Speaker 1: would shave off inflation. But on taxes, there's a lot there, yea, corporations.

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Speaker 1: Corporations may get some restrictions personally, though the top one

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Speaker 1: percent pretty much escaped, didn't they. Am I reading that correctly? Yes?

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Speaker 1: So yeah, so, um, wealthy Americans did very well in

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Speaker 1: this bill. Initially, when Biden first trotted this out, you know,

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Speaker 1: over a year ago, there were a bunch of different

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Speaker 1: rate increases on individuals, both from income to capital gains.

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Speaker 1: Looking at Harenton's taxes, all of those got cut at

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Speaker 1: various stages in the process. And really all the taxes

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Speaker 1: are focused on corporations. There's two major pieces there, One

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Speaker 1: which is a minimum tax, a fifteen percent minimum tax

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Speaker 1: for all US corporations. Uh, you know some have The

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Speaker 1: corporate rate in US is one percent, but a lot

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Speaker 1: of companies pay a lot less than that because of

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Speaker 1: different deductions and credits. The other is this buy back tax,

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Speaker 1: with the one percent exercise tax on corporate buybacks, and

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Speaker 1: so curious to see, you know how that plays out.

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Speaker 1: That doesn't go into effect until the start of next year,

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Speaker 1: so we could see a flurry of buybacks in the US,

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Speaker 1: you know, until that tax goes into effect. Of course,

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Speaker 1: the President Biden, uh, the thrust that he was making through.

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Speaker 1: This was his his push behind climate age. UH. The

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Speaker 1: goal is to cut gas emissions by about from two

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Speaker 1: thousand five levels by the end of the decade. What

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Speaker 1: does it do? How does it do that? Yeah, So

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Speaker 1: there's a several hundred billion dollars of investments into all

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Speaker 1: sorts of new incentives for green technology. So there's a

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Speaker 1: greatly increased electric vehicle credit for American consumers, as well

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Speaker 1: as a bunch of different UH credits for different types

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Speaker 1: of renewable energy. What's notable in this bill, though, is

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Speaker 1: that there's also some incentives for fossil fuels as well. Again,

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Speaker 1: you cause all goes back to Joe Manson, who was

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Speaker 1: one of the senators who helped cut this deal. He

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Speaker 1: is from West Virginia, a state that is very dependent

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Speaker 1: on coal and natural gas, and so you see that

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Speaker 1: reflected in the overall bill. Yeah, and there's gonna be

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Speaker 1: some some controversy regarding the electric vehicles because they expanded

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Speaker 1: the number of car makers, but they also put limitations

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Speaker 1: on what cars and what people actually will be eligible

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Speaker 1: for it. Yeah, there's limits both on kind of the

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Speaker 1: incomes that people that consumers can use to to buy

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Speaker 1: it income. There are limits on the cost of the

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Speaker 1: car and also restrictions that put different elements of the

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Speaker 1: car need to be American made some ev makers, including

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Speaker 1: GM and Toyota, in the run up to the passage

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Speaker 1: of this bill complained and said, hey, this is these

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Speaker 1: are actually too restrictive, and we're not going to be

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Speaker 1: able to source of all of our products and and

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Speaker 1: do and meet the requirements for this. That's yet to

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Speaker 1: be see if that was, you know, if that's actually true,

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Speaker 1: if they're able to change some of their supply chain

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Speaker 1: issues and um and be able to qualify for the credits.

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Speaker 1: But this is something that was very important to do

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Speaker 1: a lot of Senate Democrats, particularly those that represent the

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Speaker 1: car industry in Michigan. And I hate to do this

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Speaker 1: to you. We have about thirty seconds left. We need

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Speaker 1: to touch briefly on Medicare. On negotiation of drug prices.

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Speaker 1: This major, This is huge. This is the first time

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Speaker 1: that Medicare can negotiate with drug companies. It's something that

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Speaker 1: UH Congress has wanted to do for a long time,

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Speaker 1: but it just hasn't had the right mix of political

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Speaker 1: realities happening. And so a lot of people are very

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Speaker 1: happy this is finally gotten done. All right, Laura, You're awesome.

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Speaker 1: Thank you so much much for your help. That is

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Speaker 1: a Bloomberg tax reporter, Laura Davison