What's in, and out, of Democrats' inflation-fighting package

A $4 trillion effort to rebuild America's public infrastructure and family support systems began during President Joe Biden's first months in office.

The $739 billion proposal was struck by two top negotiators, Senate Majority Leader Chuck Schumer and Sen. Joe Manchin, who rejected Biden's earlier drafts.

The Democrats have a 725-page inflation reduction act of 2022.

Drug costs are lower.

Launching a long-sought goal, the bill would allow the Medicare program to negotiate prescription drug prices with pharmaceutical companies.

There is a $2,000 out-of-pocket cap for older adults buying prescriptions from a pharmacy.

Money would be used to give free vaccinations to seniors who are not guaranteed free access.

Help pay for health insurance.

Some Americans who purchase their own health insurance would be helped by the bill.

The extra help was due to end this year. The bill would allow the assistance to continue for three more years and lower insurance premiums for people who are buying their own health care policies.

The largest investment in climate change in US history.

Climate change-fighting strategies include investments in renewable energy production and tax refunds for consumers to buy new or used electric vehicles.

$60 billion for a clean energy manufacturing tax credit and $30 billion for a production tax credit for wind and solar are seen as ways to support the industries that can help curb the country's dependence on fossil fuels.

Consumers can get tax breaks for going green. A consumer tax credit for renewable energy investments is one of the things. There is a tax credit for the purchase of used electric vehicles and a tax credit for the purchase of a new electric vehicle.

The Democrats think the strategy could put the country on a path to cut greenhouse gas emissions by 40% by the year 2030.

Is it possible to pay for all of this?

Corporations that earn more than $1 billion in annual profits will have to pay a 15% minimum tax.

It's a way to make sure that 200 U.S. companies don't pay any taxes at all.

The new corporate minimum tax would raise more than $300 billion over the next 10 years.

The IRS is able to raise money by going after tax dodgers. The bill proposes an $80 billion investment in taxpayer services, enforcement and modernization, which is projected to raise $203 billion in new revenue, and a net gain of $124 billion over the ten year period.

Biden pledged not to raise taxes on families or businesses that make less than $400,000 a year.

Medicare negotiates with the drug companies to lower the price of drugs for seniors.

Extra money is needed to pay down debt.

The bill has $739 billion in new revenue and $433 billion in new investments.

The nation's economy churned through shutdowns, closed offices and other massive changes, causing the federal deficit to spike.

Deficits have risen and fallen in recent years. The Congressional Budget Office said in a report this week that federal budgeting is unsustainable.

What's left?

Many of Biden's more ambitious goals have been left behind by the latest package.

While Congress passed a $1 trillion bipartisan infrastructure bill of highway, broadband and other investments that Biden signed into law, the president's and the party's other priorities have slipped away.

A continuation of a $300 monthly child tax credit is believed to have helped reduce child poverty.

Plans for free pre-kindergarten and free community college, as well as the nation's first paid family leave program that would have provided up to $4,000 a month for births, deaths and other crucial needs, are gone for now.

That's right.

Matthew was a writer for the AP.