It takes Compromise.
To raise a kid, get them off to kindergarten and/or college, and to get a bill passed on Capitol Hill, the power of compromise in politics and parenting cannot be overstated.
This week, just as many moms are taking their littles into kindergarten for the first time, or moving teens into college dorms, President Biden signed the Inflation Reduction Act. Getting this bill passed was equivalent to 18-years of child rearing: endless patience, negotiating, bribing, enforcing some rules and compromising on others, crying, celebrating, and loving.
It is not as green as the Green New Deal nor as grand as the Build Back America plan Biden promised while campaigning, but Democrats and Republicans worked together and this baby has flown the coop! And just like that, here we are. In the rhetoric of politics and the algorithms of our news feeds, we can lose the plot and get away from what policy can actually mean for our lives of and families. So, here’s a little break down on what this bill actually means for you and your family.
What does this bill actually mean for Inflation?
The Inflation Reduction Bill was (actually) some good marketing on the part of the Dems because most of us, on both sides of the aisle, want to stop inflation. In reality, the new law is more about overall and longterm health of America than it is about inflation. But there are three ways the bill does address rising prices.
- The bill will reduce the federal deficit, which is the difference between how much the U.S. government spends and how much it makes in taxes and revenue. This will be primarily through a 15% minimum tax on corporations making more than $1 billion and really (companies like Amazon and Nike).
- It will advance American manufacturing and production, especially in the transition to renewable energy, which even oil and gas companies admit (under pressure) is our (necessary) future and they are planning for it.
- The bill will help limit the price growth of certain prescription drugs by allowing Medicare to negotiate cost with pharmaceutical companies and putting a $2,000 cap on prescriptions for seniors, which 80% of small business owners support.
What does this mean for Climate?
“The bill will put us on a much-needed path to 40% emissions reduction by 2030 while restoring U.S. credibility to lead climate action on the global stage,” state the folks at Earthjustice. “As a whole, it represents a huge step forward in the fight to preserve a livable planet and is one we need to take while we have the chance.” Some specifics on how the bill will help us act on climate:
- The bill will lower energy costs by expanding access to clean energy and clean energy tax credits.
- It will create jobs and increase our country’s energy security by investing $60 billion in American manufacturing solar panels, batteries, and other clean energy technologies in the U.S.Invest $9 billion in home energy rebate programs.
- The bill will move the the transportation sector away from fossil fuels with investment such as $1 billion for clean school and transit buses, garbage trucks, and other heavy-duty vehicles.
- It allocates $3 billion to clean up air pollution at ports (a major source of pollution) and provides tax credits of up to $7,500 on new and used electric vehicles.
What does this mean for Taxes?
Small business and working families making under $400,000, roughly 98% of Americans, are not going to see a tax increase. Yes, the IRS will receive $80 billion in funding, but this does not mean that there will be more agents going after the average American. As current IRS Commissioner Charles Rettig (a Trump appointee) explains, “these resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans.”
Rather, the IRS will be able to update its 1970s technology and hire more staff so that the corporations and individuals who can afford to hire expensive lawyers and accountants to game the system will no longer have that unfair advantage.
Average Americans can also expect more tax credits that support a clean energy future (slowed climate change, cleaner air, and fewer expenses and death at the hands of air pollution).
Keep getting smarter, joining forces, taking action, and feeling better.
AP News and Reuters are consistently ranked the least biased mainstream media outlets. Here’s a great piece on how social media is missing some of the key context about the bill and taxes and more on the massive undertaking that this bill required and how it will impact most Americans.
Returning for a moment to this concept of the power of compromise in politics and parenting, and these ever-changing stages of being human.
Kindergarten and College
For those of you dropping kids off at college or seeing them into their own energy transition, here are some tips on what our teens want us to know during this momentous occasion.
And for you lucky mamas just starting the journey in kindergarten, just know, today will be tough, but you will get through it.
It goes so fast; hold on to every precious, exhausting moment. The days are long and the years are short, goes that oh-so-true phrase. The power of compromise in politics and parenting is not to be undervalued as it makes the journey richer.
Like negotiation, forgiveness, facing consequences, and providing unconditional love, we know we are all part of one system, be that a family system, a national system or a global system and the more we can all work together, the better off we will all be.
