Biden's New Corporate Tax Won't Impact Most Companies

[applegrove]

Biden’s New Corporate Tax Won’t Impact Most Companies

August 16, 2022 at 11:46 am EDT By Taegan Goddard 25 Comments

https://politicalwire.com/2022/08/16/bidens-new-corporate-tax-wont-impact-most-companies/

"SNIP.......

CNBC: “Business advocacy groups lobbied hard against the 15% minimum tax rate for large corporations that just passed Congress as part of the the Inflation Reduction Act, saying it was “terrible policy” that would reduce economic growth and make America ‘poorer.'”

“Wall Street analysts, however, say the legislation won’t dramatically affect company earnings or their future investments.”

.......SNIP"

[applegrove]

1. Make America poorer? So America shares the wealth? Without the rich paying taxes?

Have not seen it trickle down in the last 40 years. Indeed inequality has massively increased.

[Faux pas]

2. What

was the point of passing it then?

[applegrove]

3. Reduce inflation and make sure the biggest corporations pay something.

[fescuerescue]

4. This article is saying that won't happen though.

[applegrove]

5. The article says it will raise $300 Billion in the next 10 years. That is a lot.

[fescuerescue]

7. $30 billion a year?

We issued $3 trillion in new money in 2020 alone.

This bill will take 10 years to absorb 1% of the inflationary effects of 2020 alone.

[frazzled]

6. It's saying it won't impact them much

Not that they won’t be subject to the tax

“Wall Street analysts, however, say the legislation won’t dramatically affect company earnings or their future investments.”

[applegrove]

12. It is part of the plan. Then there is this from Robert Reich:

Link to tweet

[ProfessorGAC]

8. It's Tricky

There should be more tax revenue, but the net impact on any single company will be modest.
Then, remember they're talking about the investor point of view.
Big investors & funds are diversified broadly enough to include holdings in companies that are already paying more taxes than this new minimum. Earnings from those companies are wholly unaffected.
A combination of low & zero impact equates, to the analysts, as an insignificant change in Earnings overall.
But, the federal government will still see increased tax revenue.
It was worth doing, even to this moderate degree.

[fescuerescue]

9. I think it holds political value

from a messaging standpoint.

But it's insignificant from an inflation standpoint.

$300 million over 10 years is dwarfed by the $3 trillion of inflationary dollars printed in the single year of 2020.

[ProfessorGAC]

10. Maybe

The US still has a total invested capital to national debt ratio of over 12.
Since there are elements to this law that incentivize domestic manufacturing, supply could be impacted upward, with shipping energy costs down.
If one is willing to do short term, x therefore y view if the bill, I can see coming to the conclusions you drew.
A deeper dive & longer view might change your opinion.

[fescuerescue]

11. Yea I'm not wedded to this.

It's more my natural skepticism at play.

I will do some reading up on this.