How the Senate Democrats' surprise spending plan could impact your taxes
CBSN
The surprise agreement between Senator Joe Manchin and other Democrats on a new health care, energy and climate bill paves the way for some tax changes that have long been on President Biden's agenda. Whether the proposal could affect you may depend on your income, your job and where you live.
Called the Inflation Reduction Act, the package — a dramatically scaled-down version of the last year's failed Build Back Better Act — aims to invest in clean energy, while allowing Medicare to negotiate drug prices and capping out-of-pocket drug costs for Medicare recipients at $2,000. The bill would also lower premiums for millions of people on Affordable Care Act plans.
To pay for this, the bill would make changes to the IRS and the tax code to raise $739 billion, with about $300 million left over to help reduce the deficit. That's a lot of new tax revenue, which prompts the question of who could end up paying more in taxes if the measure becomes law.
