August Newsletter
The brief newsletter below summarizes our response to the questions clients have been asking us lately. If you have a question you’d like us to address next month, please send us a note!
- The Inflation Reduction Act was passed by the 117th Congress in July. In a nutshell, this act looks to garner higher revenue from tax enforcement, impose an excise tax on stock buybacks, and impose a minimum 15% corporate tax rate for companies with $1 billion in income. The proceeds will be directed towards reducing the deficit and fighting climate change.
- The Act will also allow Medicare drug prices to be negotiated, and establish a $2,000 cap on out-of-pocket drug costs starting in 2025. This is a welcome change for many retirees, especially those who require expensive medications.
- July CPI was measured at 8.5%, a touch down from the June numbers. While the media is quick to assert that inflation is dying down, we aren’t convinced this is the case. Your personal experience with inflation is of more importance than what the numbers say, because your consumption choices are a function of your personal needs. If you are feeling the pinch of inflation and would like to discuss, let me know.
Sources
Smith, Kelly Anne. (8 August, 2022). Forbes. Senate Passes Inflation Reduction Act—Here’s What’s Next. https://www.forbes.com/advisor/personal-finance/inflation-reduction-act/
US Bureau of Labor Statistics. Consumer Price Index News Release. Consumer Price Index – July 2022. https://www.bls.gov/news.release/archives/cpi_08102022.htm
Disclosure:
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.