According to the new Inflation Reduction Act passed by POTUS Joe Biden, the tax rules of the United States Of America are about to change. The new tax law mandates that corporate bodies that have a turnover of $1 Billion are to pay 15% in tax. An additional 1% will also be paid on stocks that have been bought back.
These new-found regulations seem to hit business mammoths like Meta, the parent company of Facebook, Instagram, and Whatsapp, and Alphabet, the parent company of Google.
The Act is expected to bring down $300 Billion off the federal deficit. This could be a potentially positive marker for the common man, as it could have good effects on the national economy.
Analysts have stated that the new Inflation Reduction Act does not look good for stocks. However, for turnovers, the provisions do not paint a bad picture.
The Inflation Reduction Act came into effect on the 16th of August 2022. It has multiple purposes under its wing. The chief ones include:
- Deficit reduction.
- Lowering costs of prescription medication.
- Investing in clean energy sources.
- Making huge corporations pay their fair share of taxes.
Although the overall impact is meant to be minimally noticeable, large corporations are expected to be the ones who will face the greatest change.
Some experts have claimed that the minimum tax provision could end up making the US even more financially crippled.
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