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Joint Economic Committee Democrats Chairman - Rep. Don Beyer (D-VA)

How the Build Back Better Act Would Reduce Inflationary Pressure and Cut Costs for Families

Key Points:
The Build Back Better Act will make crucial investments to reduce inflation and support families
The Build Back Better Act is fully paid for
The Build Back Better Act will increase labor force participation and productivity
The Build Back Better Act cuts taxes for families and seniors
The Build Back Better Act makes investments to combat climate change
Bringing down inflation and costs for families is crucial to sustained economic growth that is broadly shared
Underinvestment in America’s public infrastructure helped create the conditions for the inflation—or higher prices for the same goods, economywide—that the U.S. is currently experiencing. The economic recovery, fading emergency pandemic relief and the Federal Reserve’s actions will reduce inflation in 2022, but the Build Back Better Act presents the best opportunity for Congress to reduce inflationary pressure long term, cut costs for families and boost economic resilience.

Bringing down inflation and costs for families is crucial to sustained economic growth that is broadly shared. After decades of rising inequality and tax cuts for the wealthy and corporations, the House-passed Build Back Better Act would make crucial investments to bring down longterm inflationary pressure through investments to grow the American workforce, increase the supply of affordable housing and train generations of workers. By addressing the threat of climate change, the bill would reduce the role of fossil fuel price spikes and extreme weather in driving future inflation, insulating the economy from key sources of price spikes that can lead to inflation—just as occurred in 2021.

The Build Back Better Act would directly reduce healthcare and prescription drug costs—with Medicare negotiating lower drug prices for seniors—while cutting taxes for families with children. The bill would also cut driving costs for millions of Americans, make commuting costs more predictable and dramatically lower child care costs, especially for the newest parents.

Read the full report here.