Certainlly the name itself, the Inflation Reduction Act (IRA), sounds catchy! Who doesn't want to see their grocery bill go down? There is much debate regarding how or if the provisions within the legislation will actually reduce inflation. One thing we know for certain, however: the IRS will be expanding its footprint to the tune of $80 billion over the next 10 years.
The Inflation Reduction Act (IRA), was signed into law on August 16, 2022, and it includes health-care and energy-related provisions, a new corporate alternative minimum tax, and an excise tax on certain corporate stock buybacks. Additional funding is also provided to the Internal Revenue Service (IRS) to help fund operations and improve the enforcement of tax laws.
But will it reduce inflation?
Read on to understand the fundamental changes enacted with this piece of legislation.