It looks like the so-called Inflation Reduction Act will officially become law.

The Senate voted over the weekend to pass the bill, which will almost certainly get House approval this week.

But here’s the thing… 

The Inflation Reduction Act does very little — if anything — to reduce inflation. In fact, there’s evidence that it could increase inflation over the next year. 

Meanwhile, it increases taxes on corporations (despite what you're being told) and could potentially drive many stocks lower.

Even though I'm not a fan of this bill, it will create some areas of opportunity for investors.

So let's take a closer look at what's happening in Washington, on Main Street, and on Wall Street!

More Deception From Washington

I typically try to steer clear of politics here at Rich Retirement Letter. But when it comes to your family's financial wellbeing, I just can't keep silent. 

And I'm extremely frustrated when any politician on either side of the aisle tries to deceive the American public.

Frankly, the fact that lawmakers named this bill the “Inflation Reduction Act” makes my blood boil. There’s nothing about it that will reduce inflation for your family any time soon.

Politicians are using talking points that tout lower drug prices for Americans. But did you know that only a handful of drugs are even affected by this bill?

About half of them might be priced lower in 2026. (Yes, that's right — four years from now). And the rest won't have their prices negotiated lower until years after that!

Meanwhile, the bill will increase government spending on green energy projects.

And while I'm all for investing in environmental change, history tells us that the government is incredibly inefficient while free markets can do a much better job.

That's really not the point though. The point is that politicians are deceiving you by calling this the Inflation Reduction Act.

It's a tax-and-spend bill just like many of the other initiatives Washington is so keen on.

Tax and Spend Will Drive Inflation Higher

Let's talk about taxes for a moment.

President Biden says that this bill is funded by corporate tax revenue but doesn't increase taxes on corporations.

Does that sound like nonsense to anyone else?

The truth is that this bill will add taxes for corporations by changing the way companies can write off certain expenses.

Maybe the tax code needs to be changed. Or perhaps it doesn't.

But if we're going to change the tax code to generate more taxes from corporations, let's tell that story to the American public.

We're all adults here; we deserve the truth.

Now keep in mind this bill is expected to create roughly 500,000 new jobs in the green energy industry alone.

While that would normally be a good thing, our economy is already dealing with a labor shortage.

So if the green energy industry hires 500,000 people, those workers will need to come from somewhere. That means more competition from other industries that will have to pay more to attract new hires.

Remember, last week's jobs report was already red-hot sparking fears of even higher inflation as companies compete for a limited number of people.

The wage-price inflation spiral is alive and well. And the "Inflation Reduction Act" will only add more fuel to the fire!

A Bright Spot for Investors

I can’t do much to change the way Washington tries to deceive us. But I can help you find opportunities from this bill.

As Washington pours billions into the green energy space, many stocks in this area are already trending higher

And given the magnitude of spending planned, we can expect years of profit growth for many of these companies.

One of the best ways to profit from this spending is with the iShares Global Clean Energy ETF (ICLN).

This fund invests in a wide range of clean energy stocks. So you can take a diversified position in this industry with one single position.

Now the fund has moved sharply higher over the last few trading sessions. And I wouldn't be surprised to see it pull back a bit short-term.

That's why I love the idea of putting some money to work a bit at a time — buying a few shares now, a few shares next week, and possibly more next month.

Over time, this should be a big trend that gives you plenty of profits in the year ahead.

Of course, I'll keep looking for individual plays that make sense in today's market. But for now, shares of ICLN are a great way to get started!