Rep. Ilhan Omar Backs 'Inflation Reduction Act,' Calling It 'Historic'

MINNEAPOLIS— Rep. Ilhan Omar Monday came out to publicly support the "Inflation Reduction Act" on Monday, calling it a "historic bill."

The bill passed the 50-50 U.S. Senate along partisan lines on Sunday thanks to a tie-breaking vote from Vice President Kamala Harris. Its impact on inflation is up for debate.

"With the Senate’s passage, we are one step closer to passing the biggest climate bill ever, lowering drug prices, taxing wealthy corporations, and more," Omar said.

The estimated $740 billion package — paid for by new corporate taxes — invests $375 billion in efforts aimed at fighting climate change and $300 billion in paying down federal deficits. However, there is no evidence it will reduce inflation.

"Is it perfect? No," Omar added. "I oppose expansion of fossil fuel leasing and I am disappointed that key elements like taxing wealthy private equity speculators and capping insulin prices for private insurers were removed. But the bill is a massive step forward for Minnesotans and I’m extremely proud of the role the Congressional Progressive Caucus played in pushing for the best deal possible in the face of conservative resistance."

The bill also caps prescription drug costs at $2,000 out of pocket for seniors and provides funding for Americans to pay for private health insurance.

Another $80 billion from the bill will go to the IRS for tax enforcement, which is expected to raise $203 billion in new revenue. Democrats say the new funding will allow the agency to go after wealthy tax cheats. Republicans view it as an attack on small businesses and the middle class.

"The Democrat's answer to 40-year-high inflation is billions more in reckless spending & to hire 87,000 IRS agents to chase down every middle-class American family," said Republican Rep. Tom Emmer, who represents a portion of Minnesota northwest of the Twin Cities.

Most of the new government funding coming from the bill is generated through a 15 percent minimum tax on corporations that over $1 billion annually.

The U.S. House is expected to vote and pass the measure by Friday.

Reported from the Associated Press was used in this story.