Congressional Record, Senate, August 6, 2022: Page S4210
Summary
Page S4210 of the Senate section of the Congressional Record for August 6, 2022, in interleaved columns. It carries a Pay-As-You-Go Scorecard for the Senate with current balances for fiscal year 2022, fiscal years 2022 to 2026 and fiscal years 2022 to 2031, revised pursuant to section 3002 of S. Con. Res. 14. In remarks headed Inflation Reduction Act of 2022, Mr. Cardin says the act provides up to $80 billion to the Internal Revenue Service to modernize computer systems and rebuild its workforce, and that the Congressional Budget Office estimates $203 billion in additional revenue over 10 years from enforcement and compliance. He also says the act will save Maryland families with median income about $2,200 annually on health insurance.
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“Congressional Record, Senate, August 6, 2022: Page S4210.”
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S4210 CONGRESSIONAL RECORD — SENATE August 6, 2022
PAY-AS-YOU-GO SCORECARD FOR THE SENATE and companies that make over a billion health insurance. Access to affordable
(Revisions Pursuant to Section 3002 of S. Con. Res. 14, the Concurrent dollars accountable for paying their health insurance saves lives and re-
Resolution on the Budget for Fiscal Year 2022) fair share of taxes, like everyone else duces costs because people get the care
($ in billions)
in this country. they need and they get it sooner. As
Balances This past Wednesday, Timothy F. Benjamin Franklin said, ‘‘An ounce of
Geithner, Jacob J. Lew, Henry M. prevention is worth a pound of cure.’’
Current Balances:
Fiscal Year 2022 ........................................... ¥5.630 Paulson Jr., Robert E. Rubin and Law- The IRA will save Maryland families
Fiscal Years 2022–2026 ............................... ¥57.400 rence H. Summers issued the following with median income about $2,200 annu-
Fiscal Years 2022–2031 ............................... ¥235.321
Revisions: statement: ally.
Fiscal Year 2022 ........................................... 0.000 As former Treasury Secretaries of both
Fiscal Years 2022–2026 ............................... 36.700 The IRA raises several hundred bil-
Fiscal Years 2022–2031 ............................... 30.741 Democratic and Republican Administra- lion dollars by making the Tax Code
Revised Balances: tions, we support the Inflation Reduction
Fiscal Year 2022 ........................................... ¥5.630 fairer through three major provisions.
Act, which is financed by prudent tax policy
Fiscal Years 2022–2026 ............................... ¥20.700
that will collect more from top-earners and The first provides up to $80 billion to
Fiscal Years 2022–2031 ............................... ¥204.580
large corporations. Taxes due or paid will the Internal Revenue Service—IRS—to
f not increase for any family making less than modernize its computer systems, some
$400,000/year. And the extra taxes levied on of which are 60 years old, and rebuild
INFLATION REDUCTION ACT OF corporations do not reflect increases in the its workforce to ensure greater tax
2022 corporate tax rate, but rather the reclaiming compliance. CBO estimates that in-
Mr. CARDIN. Madam President, Sen- of revenue lost to tax avoidance and provi- vesting $80 billion in tax enforcement
ate Democrats have stepped up and sions benefitting the most affluent. The se-
and compliance will generate $203 bil-
passed legislation that will make it lective presentation by some of the distribu-
tional effects of this bill neglects benefits to lion in additional revenue over the
easier for American families to afford next 10 years.
middle-class families from reducing deficits,
health insurance coverage and pre- from bringing down prescription drug prices, Since 2010, the IRS budget has been
scription drugs and lower energy costs and from more affordable energy. This legis- cut by roughly 20 percent, and the
and boost domestic job creation in the lation will help increase American competi- budget earmarked for enforcement has
growing clean energy sector. We have tiveness, address our climate crisis, lower dropped by 24 percent. Audit rates for
done so while reducing the deficit and costs for families, and fight inflation—and
the largest corporations and the
without raising taxes on families and should be passed immediately by Congress.
ultrawealthy have fallen dramatically,
small businesses. The Inflation Reduc- The original top-line estimates from by 54 and 71 percent, respectively. We
tion Act—IRA—tackles climate the Congressional Budget Office— now have the perverse situation where
change, makes the Tax Code fairer, and CBO—and the Joint Committee on Tax- the poorest American families are au-
invests in long-overdue environmental ation—JCT—were that the bill would dited at about the same rate as the top
justice programs. This is an historic raise $725 billion in revenue, invest $433 1 percent richest taxpayers, even
bill, and polling indicates that large billion, and apply the balance—nearly though that 1 percent is responsible for
majorities of Americans support its $300 billion—to deficit reduction. These 28 percent the ‘‘tax gap,’’ the difference
major provisions. numbers will change some with the
While a simple majority of Senators between taxes owed and collected. Ac-
final score, but they illustrate the cording to recent polling, nearly three-
can pass a budget reconciliation bill, magnitude of what this bill will accom-
there was nothing to prevent our Re- quarters of Americans believe the IRS
plish. The IRA will help to build a bet- should conduct more tax audits of
publican colleagues from joining us in ter America for all Americans.
supporting this measure to lower es- large corporations and millionaires.
Let’s start with health care. The bill
sential costs for American families and we passed today will lower prescription The IRA provides 10-year funding for
enhance our economic and national se- drug prices and make healthcare more the IRS as follows: $3.2 billion for tax-
curity. These are policies that all Sen- affordable for millions of Americans. payer services; $45.6 billion for enforce-
ators and all Members of Congress Finally, the Secretary of Health and ment; $25.3 billion for operations sup-
should embrace, and this legislation Human Services will have the author- port; and $4.8 billion for business sys-
contains many bipartisan policies. Rec- ity to negotiate lower drug prices for tems modernization.
onciliation does not have to be a par- the Medicare Program, benefitting These appropriated funds are to re-
tisan process. Just in the past year, the both millions of seniors on fixed in- main available until September 30,
Senate passed the Infrastructure In- comes and taxpayers. In the private 2031, and no use of the funds is intended
vestment and Jobs Act—IIJA—the sector, no plan sponsor or manager to increase taxes on any taxpayer with
CHIPS + Science semiconductor manu- would ever accept responsibility with- taxable income below $400,000.
facturing bill, the Honoring Our PACT out the ability to decide how to nego- The bill also makes it easier for the
Act, and Treaty Document No. 117–3, tiate. Medicare negotiation will ensure IRS to establish a free, direct e-file tax
which contains Protocols to the North that patients with Medicare get the return system. The IRS currently
Atlantic Treaty of 1949 on the Acces- best deal possible on high-priced drugs, outsources its free e-file program to
sion of the Republic of Finland and the saving Medicare approximately $100 private, for-profit tax preparers. Not
Kingdom of Sweden, with strong bipar- billion. surprisingly, only 3 percent of tax-
tisan majorities. I regret that our Re- The IRA will further lower drug costs payers—of 70 percent eligible—use the
publican colleagues did not join us for seniors by capping out-of-pocket existing free e-file option.
today in passing the IRA. costs for part D prescriptions at $2,000 The second major provision estab-
As for me, if asked to choose between each year, requiring drug manufactur- lishes a minimum corporate income
the status quo or lowering health cov- ers to pay penalties if they raise their tax of 15 percent of book income on
erage costs for Maryland families and prices faster than inflation, and delay- fewer than 200 of the Nation’s largest
having large companies pay a min- ing of the Trump administration’s drug corporations that currently pay less
imum, fair share of taxes, there is no rebate rule. Although these provisions than the statutory corporate tax rate,
contest. I will choose Maryland fami- alone will lower beneficiary costs, the which is 21 percent. The corporate al-
lies every day. I find it incomprehen- IRA also lowers costs through a rede- ternative minimum tax—CAMT—pro-
sible that anyone—other than perhaps sign of the Medicare Part D formula, posal would impose the 15 percent min-
some billionaires—thinks it is accept- expansion of the low-income subsidy— imum tax on adjusted financial state-
able that teachers, nurses, and me- LIS—in part D, and Federal coverage ment—‘‘book’’—income for corpora-
chanics and most small businesses for vaccines. tions with profits in excess of $1 bil-
dlhill on DSK120RN23PROD with SENATE
often pay a greater percentage of their The IRA also invests $64 billion to ex- lion. Corporations would generally be
income in Federal taxes than the tend ACA healthcare premium sub- eligible to claim net operating losses
ultrawealthy or a company that makes sidies through 2025. These subsidies, and tax credits against the AMT and
billions of dollars in profits. The bill first provided through the American would be eligible to claim a tax credit
we passed today changes that calcula- Rescue Plan, have guaranteed millions against the regular corporate tax for
tion and holds the richest Americans of Americans access to affordable AMT paid in prior years, to the extent
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August 6, 2022 CONGRESSIONAL RECORD — SENATE S4211
the regular tax liability in any year ex- tricity by 5.2–6.7 percent over the next change also cost-effectively reduce pol-
ceeds 15 percent of the corporation’s decade, saving electricity consumers lution to the Chesapeake Bay.
adjusted financial statement income. $209-$278 billion. The average household The IRA makes investments to accel-
In 2020, 50 of the biggest corporations will experience approximately $170-$220 erate clean energy deployment, help
paid $0 in Federal corporate income in annual savings from smaller elec- achieve our climate goals, and create
tax, despite recording substantial prof- tricity bills and reductions in the costs millions of jobs over the next decade.
its. Some of these companies effec- of goods and services over the next dec- These investments include an expanded
tively had a negative Federal income ade. The clean energy investments will tax credit to support domestic manu-
tax because they received more in cred- help to insulate ratepayers from vola- facturing of clean energy technologies,
its and rebates than they paid in taxes. tility in natural gas prices, with elec- including solar panels, wind turbines,
The AMT makes the existing corporate tricity rates projected to decrease even and batteries; and tax credits that will
tax structure fairer, especially for under a high natural gas price sce- make battery and fuel cell electric ve-
smaller businesses that often pay their nario. More importantly, the IRA will hicles—EVs—more affordable for mil-
taxes at higher rates than the largest bolster our economic and national se- lions of families. The bill provides over
corporations. Consider that many curity by strengthening our grid and $9 billion for Federal procurement of
small businesses pay taxes through the reducing reliance on foreign energy American-made clean technologies, in-
individual tax code, where the highest supplies. cluding $3 billion for the U.S. Postal
tax rate is as much as 37 percent. Set- The legislation also includes a his- Service to purchase zero-emission vehi-
ting a baseline of taxes to be paid by toric expansion of a tax program I have cles, helping to create a stable market
the largest corporations gives small led, the section 179D energy efficient for clean, Made in America products.
businesses a better chance to compete commercial buildings deduction, which Researchers Robert Pollin, Chirag
and succeed. provides a tax deduction for energy ef- Lala, and Shouvik Chakraborty at the
The third provision is a 1 percent ex- ficient building investments. Energy University of Massachusetts-Amherst’s
cise tax on stock buybacks. Corpora- efficiency is good business and good Political Economy Research Institute
tions can choose to distribute profits policy. This legislation will expand sec- estimate that the IRA’s more than 100
either by issuing dividends or buying tion 179D, which was made permanent climate, environmental, and energy
back shares of stock, which inflates in 2020 under my leadership, to increase provisions will generate an average of
stock prices. Stock buybacks are taxed the deduction amount, improve its ad- about 912,000 jobs each year over the
at a lower rate than dividends and cre- ministration, allow more nonprofits to next decade through combined annual
ate profit gaming opportunities for use the deduction, and expand its use public and private investments of $98
companies, which have been abused to building retrofits. billion.
In addition to the important steps The IRA tax credits and other provi-
over time. By levying a small 1 percent
the IRA takes to advance clean energy sions won’t just help create jobs; they
tax on these buyback transactions, it
and reduce greenhouse gas emissions, will help create jobs that pay pre-
improves tax efficiency and raises rev-
the bill delivers major Federal invest- vailing wages. The middle class has ex-
enue that will significantly contribute
ments to make our communities perienced wage stagnation for half a
to deficit reduction.
healthier, safer, and more resilient in century. Income inequality has grown.
The IRA’s tax provisions will in-
the face of increasing impacts of cli- The IRA will help to rebuild the middle
crease compliance and close the tax
mate change. It provides Federal as- class. Unions from the Communication
gap, which costs the U.S. $1 trillion per
Workers of America and the United
year in unpaid taxes, according to the sistance for monitoring environmental
Auto Workers to the National Treasury
IRS. That is important for the revenue quality, mitigating the harmful im-
Employees Union and the International
they raise. It is also important that pacts of air pollution and excessive
Federation of Professional and Tech-
millions of hard-working Americans heat, and enhancing walkability in our
nical Engineers all support the IRA be-
who play by the rules and pay their neighborhoods. It does this through $3
cause it promotes union jobs and ap-
taxes believe that the system is fair billion for Neighborhood Access and
prenticeships and because it will lower
and that the ultrawealthy and large Equity Grants and $3 billion for Envi-
healthcare costs.
corporations aren’t dodging their fi- ronmental and Climate Justice Block In May, the Treasury Department es-
nancial responsibilities. Grants. By targeting resources to dis- timated that the budget deficit this
We need to address climate change by advantaged or underserved commu- year will decline by $1.5 trillion. As
rapidly reducing our dependence on fos- nities, the bill advances equity in our President Biden noted at the time,
sil fuels and cutting our greenhouse infrastructure planning and invest- ‘‘The bottom line is that the deficit
gas emissions. The IRA does that. It ments. went up every year under my prede-
will cut our emissions by 40 percent or Climate change is happening now. We cessor before the pandemic and during
more by 2030 and put us on track to need to address its impacts on the the pandemic. And it’s gone down both
meet 70 percent of our Paris agreement ground. The IRA invests $2.6 billion for years since I’ve been here. Period.’’ The
obligations. It contains a Methane the conservation, restoration, and pro- IRA is fiscally responsible and will help
Emissions Reduction Program to re- tection of coastal and marine habitats reduce our budget deficits.
duce leaks from the production and dis- and resources, including fisheries, to Deficits remain too high, of course,
tribution of oil and natural gas. enable coastal communities to prepare but one of the best ways to address
The IRA contains roughly $370 billion for extreme storms and other changing them is by getting unemployed Ameri-
in clean energy, energy security, and climate conditions, as well as $250 mil- cans back to work. The July jobs re-
climate change investments that will lion to rebuild and restore units of the port released on Friday put the unem-
lower Americans’ electricity bills and National Wildlife Refuge System and ployment rate at 3.5 percent, matching
prices at the pump and create as many State wildlife management areas. the lowest it has been in 50 years. The
as 9 million good-paying jobs here in The bill supports America’s farmers U.S. economy added 528,000 jobs in
America in the clean energy sector and rural communities, with around July, more than twice the number
over the next decade. $20 billion in funds for climate-smart economists anticipated. As Myles
I am pleased the IRA includes a pro- agricultural practices through existing Udland, Senior Markets Editor of
vision I have championed, a production farm bill conservation programs, in- Yahoo! Finance, stated,
tax credit for our existing fleet of nu- cluding the regional conservation part- This staggering increase in employment
clear reactors. They are an essential nership program—RCPP—and $1 billion completes a milestone for the U.S. economy:
source of baseload power and provide 20 for the Natural Resources Conservation Pre-pandemic employment is now fully re-
dlhill on DSK120RN23PROD with SENATE
percent of the Nation’s electricity and Service, to provide technical assistance stored.
over 50 percent of our carbon-free elec- on conservation to producers. Many In February 2020, the last month before the
COVID–19 pandemic tipped the U.S. economy
tricity. sustainable practices such as expand-
into recession, there were 152.504 million peo-
According to the non-partisan Re- ing cover crops and riparian buffers ple employed in the U.S.
sources for the Future, all told, the that mitigate greenhouse gas emissions As of July 2022, 152.536 million people in
IRA will drive down retail costs of elec- and help farmers adapt to climate the U.S. were working.
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S4212 CONGRESSIONAL RECORD — SENATE August 6, 2022
And despite the labor market contraction complains about the weather, but no- others across the country. Geothermal
during the pandemic being the sharpest in body does anything about it’’—a quote resources also provide clean power, and
modern history, the bounce back marks the commonly misattributed to his friend they are essential to meet the emis-
second-fastest job market recovery since
Mark Twain. Passing a reconciliation sions reduction goals of this legisla-
1981.
In a little over two years, we’ve seen job bill is like that. We all complain about tion. As the current chairman of the
losses that topped 20 million at one point be the process, especially the so-called Finance Committee and former chair-
fully erased. vote-a-rama, which is grueling and man of the Energy and Natural Re-
This recovery stands in stark contrast to grinding and befuddling to just about sources Committee, can Senator
the malaise we saw in the labor market fol- everyone, but we don’t fix it. In fact, it WYDEN comment how this legislation
lowing the financial crisis, when it took the seems to get worse each time, not bet- intends to spur the deployment of this
better part of a decade for pre-crisis employ-
ter. I know I would prefer not to go critical clean energy technology?
ment levels to be restored.
through the process again, but the In- Mr. WYDEN. I appreciate the ques-
Inflation is also too high, but its root flation Reduction Act and the Amer- tion. For those unfamiliar with geo-
causes are COVID–19 pandemic-related ican Rescue Plan before it have been thermal energy, it is generally pro-
supply chain disruptions and Vladimir worth it. duced by delivering geothermal brine
Putin’s war on Ukraine. The IRA tack- Dahlia Rockowitz, Washington direc- and steam from underground reservoirs
les these disruptions by promoting do- tor of Dayenu: A Jewish Call to Cli- to the surface, where the resource then
mestic manufacturing and supply mate Action, noted that the Senate runs turbines to generate electricity.
chains and reducing our reliance on consideration of the Inflation Reduc- In some cases, there is a de minimis of
foreign energy. On August 2, 2022, over tion Act began on the Shabbat and amount of naturally occurring non-
120 prominent economists wrote a let- Tisha B’Av, a Jewish day of collective combustion emissions released in the
ter to Senate and House leadership mourning for historic destructions. But renewable generating process and the
stating that the IRA ‘‘addresses some as she pointed out, ‘‘ . . . according to electricity produced is considered
of the country’s biggest challenges at a Jewish tradition, this day of despair is emissions free.
significant scale. And because it is def- also the day that new hope and the po- Thanks in part to the relentless ef-
icit-reducing, it does so while putting tential of a rebuilt, reimagined, re- forts from Senator CORTEZ MASTO, the
downward pressure on inflation.’’ deemed world is born. These invest- Inflation Reduction Act provides the
There is much to celebrate in this ments in clean energy and transpor- same incentives for geothermal energy
bill, but there are many priorities that tation can help us emerge from cli- resources placed in service after De-
we were not able to add. This ‘‘to do’’ mate-fueled disasters to a more hope- cember 31, 2024, as it does for elec-
list includes reinstating the expanded ful, clean energy future for generations tricity produced by solar, wind, and
child tax credit and making child care to come.’’ other renewable resources. Indeed, all
accessible and affordable. My priority
f geothermal energy is included among
list includes legislation I have long the resources meeting the definition of
championed to expand dental coverage INFLATION REDUCTION ACT OF
‘‘qualified facility’’ for the purposes of
to Medicare beneficiaries, as well as to 2022
the new sections 45Y and 48D included
Medicaid beneficiaries, along with ex- Ms. CORTEZ MASTO. Madam Presi- in the Inflation Reduction Act.
pansions to home and community- dent, I rise to enter into a colloquy I thank my colleague from Nevada
based and maternal health services. with the chairman of the Finance Com- for her dedication to and leadership on
Congress also needs to address housing mittee, Senator WYDEN, to discuss sec- geothermal energy incentives. I am
supply and economic development pri- tions 13701 and 13702 of the Inflation pleased to have worked with her on
orities, including the Neighborhood Reduction Act. These sections estab- these incentives, and I most certainly
Homes Investment Act, the Low-In- lish new sections 45Y and 48D of the agree that electricity produced from
come Housing Tax Credit, the New Tax Code that provide new tax credits geothermal resources property quali-
Markets Tax Credit, and the Historic for, respectively, production from and fies for the production and investment
Tax Credit. While the IRA will help investment in clean electricity re- incentives provided by sections 13701
create good-paying union jobs, we need sources that are placed in service after and 13702 of the Inflation Reduction
to do more to protect and enhance December 31, 2024. Act. That has been my intent through-
workers’ rights to form and join unions Mr. WYDEN. I am pleased to join the out the course of drafting this legisla-
and engage in collective bargaining. senior Senator from Nevada in this col- tion. Geothermal resources are critical
And I will continue working to fund loquy today to discuss sections 13701 to our clean energy future, and I thank
water infrastructure programs the IIJA and 13702 of the Inflation Reduction my colleague for her collaboration in
created to address urgent affordability Act. These sections of the Inflation Re- developing these robust new tax credits
and resilience issues. duction Act reflect the work of a vari- for clean energy.
While that seems like a long list, we ety of Members, but few Members have Ms. CORTEZ MASTO. I thank the
must not let the perfect be the enemy been as focused on geothermal energy chairman of the Finance Committee
of the good, and the IRA is so much than the Silver State’s senior Senator. and my friend from Oregon for his com-
better than good. It is trans- Ms. CORTEZ MASTO. As the chair- prehensive answer, his commitment to
formational legislation, and I am proud man of the Finance Committee knows solving for climate change, and for
to support it. I want to commend Ma- well, the Inflation Reduction Act in- joining me today in this colloquy.
jority Leader SCHUMER and so many of cludes new and improved clean energy
my colleagues who have worked dili- tax credits, and I commend Senator f
gently both in the spotlight and behind WYDEN for leading the effort to sim-
the scenes to bring us to this point. I plify the Tax Code’s incentives for TRIBUTE TO KIM BRINKMAN
also want to acknowledge committee clean electricity. These credits will ad- Mr. CARDIN. Madam President, I
and personal staff; CBO and JCT staff; vance our transition to a clean energy would like to take this opportunity to
Senate Parliamentarian Elizabeth future and are a key part of this legis- congratulate Kim Brinkman, who will
MacDonough and her crew; leadership, lation’s goal of reducing carbon emis- be retiring on August 11, and to thank
floor, and cloakroom staff; the Senate sions from the electricity sector more her for her 34-plus years of exemplary
legislative counsels; and others. You than 40 percent by 2030. service to the Senate community. Kim
toil anonymously, but I hope you know The 45Y and 48D provisions expressly has spent her entire career working in
how important you are. The Senate make geothermal energy eligible for the Senate Disbursing Office. Her col-
dlhill on DSK120RN23PROD with SENATE
could not function without you. You critical tax credits, and I appreciate leagues in disbursing will miss her, but
are among our Nation’s finest public the chairman’s attention to this issue so, too, will all Senators and Senate
servants, and you are making a critical given its importance to Nevada’s econ- staff and their families. We have all re-
difference in the lives of all Americans. omy. Nevada is a leader in geothermal lied on Kim for expert advice and guid-
The American essayist Charles Dud- energy and the industry provides crit- ance on pay and health and retirement
ley Warner famously said, ‘‘Everybody ical jobs and revenues for my State and benefits and other issues.
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