Senate signs off on Inflation Reduction Act to help consumers

SPRINGFIELD, Mass. (WGGB/WSHM) - The Inflation Reduction Act made its way through the Senate over the weekend, aimed at reducing Americans’ use of oil and gas, among other things.

Western Mass News is getting answers and breaking down the legislation.

We asked experts how this act would affect the everyday consumer. They told us that it might be a while until these changes are felt in our wallets.

Kate Gourde owns a novelty gift shop in Agawam. As a small business owner, she told Western Mass News how the effects of inflation have hit her hard, especially after a tough time with the COVID-19 pandemic.

“I’m fearful that people will no longer purchase them at the new price,” Gourde said.

Inflation has hit everyone hard. That is why U.S. legislators are focused on passing legislation that helps the consumer.

Over the weekend, the Senate passed the Inflation Reduction Act, or the IRA.

“I can see a few ways in which, over the longer term, the IRA, Inflation Reduction Act, could start having an impact on our everyday pocketbooks,” said Maria Toyoda, Professor of Political Science at Western New England University.

It is a bill mainly focused on three large things, which Professor Toyoda broke down for us.

One, it focuses on incentives for Americans and businesses to encourage more renewable energy. Some lawmakers, including Massachusetts Senator Ed Markey, called it the biggest effort to tackle climate change.

“All of this combined makes it one of the most important pieces of legislation to ever be considered by the United States Congress,” Senator Markey told us.

Two, it allows Medicare to negotiate on prescription drugs which could help reduce costs on medications for the average person.

“Getting some control over the rising costs of medication will certainly have a direct impact on pocketbooks,” Professor Toyoda said.

Three, it has major corporations paying more out of pocket for taxes, creating more revenue for the country.

Gourde is concerned it will only lead to higher prices once again.

“Your cost of doing business goes up, your pricing on your product also has to go up,” she said. “It’s all relative. Everything is somewhat tied together.”

This act is not set in place yet. It still has to go through the House, where it is expected to pass. They are set to take it up this Friday, then it has to get the signature of President Biden.

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