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How the Inflation Reduction Act Could Help to Turn the Corporate Tax Code on its Head
Simplicity and transparency in the tax code have never been promoted by Republicans like this.
I’ve seen a lot of unhappiness about the Inflation Reduction Act, the giant budget bill just passed by the Senate with a vote scheduled soon for the House. You can find a one-page summary here. The highlights of the bill are shown below:
That’s what we usually see in the news about the bill. I’ve seen conservatives bemoan the 15% minimum tax. I saw them fight against the cap on insulin prices when they know that minor improvements that are protected by patents keep the prices high. It’s good to see the IRS finally get some money to upgrade its systems, hire accountants, and have more people to enforce the code. I’m aware that the carried interest loophole has been a source of pain for Democrats, and I’m glad to see that they’ve done something about it.
The news cycle gives us the big fuzzy picture. Lost in the details was a provision to tax share buybacks at 1%. It’s a tiny tax, but it’s a start.
