Inflation Reduction Act Korea's 'Suit' Vs US 'Tax Saving Energy Cost Reduction'

 

The U.S. Inflation Reduction Act, which the Yun Seok-Yeol administration foretold a WTO complaint, began its bipartisan enforcement, focusing on the tax-saving effect and energy cost reduction of the common people.
The Washington Post, in its '5 Ways Inflation Reduction Act Will Save You Money' article, estimates that nonprofit Rewiring America saves households $1,840 a year in energy costs, and that individuals spend 2 billion hours and $30 billion annually in the IRS. (IRS) announced on the 16th that it will reduce tax filing fees.
Minister of Commerce, Industry and Energy Lee Chang-yang at the National Assembly on the 22nd said, "We will actively review whether to file a complaint with the World Trade Organization (WTO) on the US inflation reduction law. He expressed concern about possible violations of the rules and regulations of the Korea-US FTA,” he said.
In a phone conversation with US Secretary of State Blincoln on the 19th, Foreign Minister Park Jin expressed concerns about the discriminatory elements of the electric vehicle subsidy reform in the 'Inflation Reduction Act' and asked the US administration to review the law so that it can be applied more flexibly. “I did,” said an official from the Ministry of Foreign Affairs.
"There will be significant tax credits to help with the transition to clean energy," said Heidi Sierholtz, president of the US Institute for Economic Policy. It will actually make this clean energy change easier,” he told The WP.
"Most families won't see much change right away, but some will actually see a decrease in what they pay for things like health care and energy," said Marc Goldwyn, chief policy officer at the Federal Budget Committee (RFBt).
Regarding tax savings, "It also includes a program framework that allows Americans to file annual taxes directly to the IRS for free, for free. This saves Americans two billion hours and $30 billion in tax filing fees each year,” Emil DiVito, senior program manager at the Roosevelt Institute, told The Post.
"With Medicare, insurance premiums and drug prices will start going down all at once, and we'll see these costs rise more slowly than others, if not immediately," said the federal budget committee responsible for the reductions in drug prices. Goldwayne told the WP.
The reduction law, which specifies prescription drug coverage, requires Medicare to negotiate prices with pharmaceutical companies for 10 prescription drugs in 2026 to 20 by 2029.
The reduction law, in particular, requires pharmaceutical companies to pay rebates from next year if they raise drug prices faster than inflation.
Medicare benefits are capped at $2,000 per year from 2025 on out-of-pocket expenses, and insulin costs are set at a maximum of $35 per month for diabetics.
Energy Savings Get $14,000 In Reimbursement, Which Homes Can Use To Pay For Green Energy Upgrades
Energy subsidies include efficient heat pumps ($8,000 refund per household), electric water heaters ($1,750), and electric cookers ($840), and a 30% refund if homeowners install solar panels.
Regarding the electric vehicle conversion tax credit, "The direct benefits are not immediate, but when you buy an electric vehicle, there is a lot to start with," he said. Liam Holgan, senior vice president, told The Post.
"It's really going to be one of those invisible catalysts," he said of the bill. "Once you're behind the wheel of an electric vehicle (EV), there's a 95 percent chance that it'll never turn around. Exposing Americans of all income levels to electrification is our It's going to have a really positive impact on our conversion capabilities," Joe Britton, executive director of the Zero-Carbon Transition Association, told The Post.
The 'Inflation Reduction Act' (IRA), which South Korea foreshadows a lawsuit, provides $7,500 for new electric vehicles and $4,000 for used electric vehicles. (FTA) Only use of national products is tax credit.
For Korean battery makers, imports from China are 83% lithium hydroxide, 87% cobalt, and 99% manganese sulfate.
Imports of lithium oxide and lithium hydroxide from China, the key materials for Korean batteries, amounted to 1.17 billion dollars in the first half of this year.
Core minerals will be raised by 10% annually from next year, and in 2029, 100% requirement legal requirements must be met to receive tax credit.
An analysis of the Penn Wharton budget model at the University of Pennsylvania for the drop in inflation showed a decline of about 0.1 percentage point in five years.
In the fall in agricultural prices, "some of the legislation's increased funding for farmers' rural development programs has the potential to help lower prices of crops such as corn and soybeans within a year or two," said William Holgan, senior vice president of the Viparshan Policy Center. told WP.
The Republican-led Senate passed the bill, which is at the heart of President Biden's economic agenda, after 20 hours of debate on the 7th.

State Department spokeswoman Ned Price said at a regular briefing on the 22nd, "This is a part of the law that will have a positive impact on the position of the United States not only at home but also in the world," in response to a question about the damage caused by the Inflation Reduction Act to U.S.-invested Korean companies. It is important to the United States on several issues, including climate issues. It is an important part of the law that has been reviewed over several months.”