Madam President, public service is about making people's lives better, and here is what is on offer this afternoon to make people's lives better in our country: Reduced healthcare costs for seniors, reduced carbon emissions, reduced energy…
Madam President, public service is about making people's lives better, and here is what is on offer this afternoon to make people's lives better in our country: Reduced healthcare costs for seniors, reduced carbon emissions, reduced energy costs, and reduced cheating by wealthy tax cheats. That is just a part of what is on offer this afternoon.
Let me just briefly touch on each of them.
We all know that medicines are way too expensive in our country. People always come back from trips, and they say: Why is it so much cheaper overseas?
It is because these big pharmaceutical companies are under absolutely no restraints to hold down the prices, and that is what we are beginning to change today.
What we are beginning to change today is to say that for those seniors who count on Medicare, for the first time, the program that they love, Medicare, is going to have the power to negotiate lower drug prices for them. The fact is, the Senate is lifting a curse with this legislation. That is how seniors feel when they hear that Medicare can't even go to bat for them. And, of course, Big Pharma has protected this ban on Medicare negotiating like it was the Holy Grail. Even today, they are warning that when we pass this, they are going to try to tie it up with the courts and the State legislatures and the Agencies. But we are not going to let that happen.
The prediction from some independent authorities on medicine has said that because of the compounding benefits of our bill--with more drugs being negotiated on a regular basis--we are looking at the possibility of a trillion dollars in savings before too long.
If a drug company refuses to negotiate, they are going to face a steep excise tax on the sale of their products until they come to the table. If they are price gouging, if they are raising their prices above the rate of inflation, say, for an older drug, they are going to pay a penalty.
And then we have new significant relief for seniors who, when they get mugged at the pharmacy counter, come home and say they just can't pay all the bills. Our legislation puts a new $2,000 out-of-pocket cap on Medicare Part D so that seniors are no longer forced to choose between paying for medicine and paying for food.
Those are all important benefits. The fact is, that penalty for price gouging is going into in effect in a couple of months, in November, so seniors are going to be able to say: We are seeing real relief from this legislation.
There are other steps that we would have liked to take. I understand that. I pushed for them. The President of the Senate has pushed for them. But let's understand the bottom line here. Every one of the policies I have outlined, on their own, is going to be life-changing for millions of senior citizens, and it is going to lay the groundwork for doing more.
I would also like to move briefly from healthcare to climate because the Inflation Reduction Act includes the biggest effort in history to save our climate and invest in clean energy and jobs. And because we all worked together, those are going to be jobs here in America. They are going to be clean energy jobs in our country because of the black letter text that we wrote into the bill.
The old system was a joke. It picked winners and losers, and anybody who was powerful could probably figure out how to get a tax break. And there were permanent breaks for oil and gas but only temporary incentives for clean energy. The system was broken. It was out of date a long time ago.
We put that old system into the dustbin of history, and we put in place emissions-based credits to turbocharge investment in clean energy, clean transportation, and energy conservation. Our new plan is going to reduce the typical American household's energy cost by $500 per year, and it is going to create 600,000 new jobs from Portland, OR, to Portland, ME.
As the President of the Senate knows, we pay for this bill with a few important changes in our tax law. For example, we just showed a couple of days ago that of 100 companies--these are companies with billions of dollars in profits--they are paying--many of them, more than 100--an effective tax rate of 1.1 percent.
Let me say that again: More than 100 hugely profitable companies that are going to pay under this legislation, and the President of the Senate did very important work on this, they are paying, on average, 1.1 percent in taxes.
Now, it is no surprise that those companies that are paying 1.1 percent think that somehow making them pay a minimum rate--a minimum rate, by the way, which is far less than the rate that a firefighter and a nurse pay--that, oh, my goodness, we won't have jobs, we won't have businesses if they do.
And we make it clear that we are not raising taxes on anybody. Anybody making less than $400,000 is not going to pay any additional taxes under this bill. I know there are some of our colleagues on the other side who have always subscribed to this trickle-down theory of economics and say that, well, if those at the very top--say, those corporations paying 1.1 percent--actually pay some taxes, that means that nurses and firefighters are going to pay more taxes, and nurses and firefighters don't buy that for a second.
We also paid for the legislation in an important way that was proposed by our colleague from Ohio, Senator Brown, that I was proud to join him on, and that is a 1-percent tax on stock buybacks.
Corporations have spent trillions of dollars on stock buybacks in recent years, a huge windfall for corporate executives and wealthy shareholder. It set a record in 2018, broke it again in 2021 right in the middle of a global pandemic, and I just noticed the profits of some of the biggest oil companies here in the last few weeks, again, they are kind of leading the league in stock buybacks.
Stock buybacks make a lot of wealthy people even wealthier on paper, but they do very little to strengthen the economy, drive innovation, or improve the well-being of American workers.
Our 1 percent tax is not only going to help pay to prevent the worst effects of climate change, it is also going to encourage big corporations to invest in their workers and research and development instead of more handouts to the top.
Finally, I just want to emphasize this question of tougher IRS tax enforcement. We have heard some of our colleagues on the other side say that somehow this is going to target the working person. I see our good friend from Delaware, another member of the committee. That is just not going to happen. And the reason it is not, as my colleagues on the Finance Committee know so well, working people are not the problem here. They pay taxes with every single paycheck. It is right there on their paycheck. Everybody knows what taxes they pay, and should they be engaging in any questionable activities, it would end up showing up on these forms. They are not the problem.
But as we have been told again and again by independent experts, Democrats, Republicans, and Independents, we do have a problem with big, wealthy tax cheats. Big, wealthy tax cheats don't pay taxes with every single paycheck like firefighters and nurses.
And after a decade of Republican budget cuts, we are now in a very difficult position to go after these wealthy tax cheats who rip off the American people for billions of dollars every year.
The current Commissioner who joins many Democratic Commissioners and Republican Commissioners in the past--the current one is a Republican appointee--estimated the number of
taxes owed that are not collected could be as much as a trillion dollars per year.
We believe that the Agency ought to have the resources it needs to go after sophisticated, lawbreaking tax cheats at the top. And I know that my colleagues on the Finance Committee join me in saying: We are going to watchdog the Agency very carefully and make sure the focus is on these wealthy tax cheats and not the typical working person, as my colleagues on the other side of the aisle have talked about.
So there you have it, folks. Here is what is on offer: What is on offer are lower costs for seniors, reduced climate emissions, help for working families, cracking down on wealthy tax cheats. That is what this is all about today. That is why this legislation, I believe, is going to give public service a good name.
I yield the floor.
I suggest the absence of a quorum.