Analysis: Latest Version of Senate Democrats Reconciliation Bill Raises Taxes on Small Businesses

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Analysis: Latest Version of Senate Democrats Reconciliation Bill Raises Taxes on Small Businesses

Jordan Dixon-Hamilton 6 Aug 2022

The latest iteration of the Senate Democrats’ reconciliation bill, known as the “Inflation Reduction Act,” would raise taxes on thousands of small and mid-sized businesses across the country, according to Americans for Tax Reform (ATR).

Senate Democrats changed the language of their new minimum corporate book tax, which would now hit small and midsized businesses well below the $1 billion profit threshold the tax intended to hit.

The new tax would impose a 15 percent minimum tax on the book income of “applicable corporations.” However, the latest change to the book tax would impact any business with private equity in its capital structure.

As John Kartch, vice president of ATR’s communications, said, “Any business that has [private equity] in its capital structure is now considered a subsidiary of that firm and thus subject to 15% book tax.”

As ATR explained:

    As written, the provision now appears restructured to define any company with private equity in its capital structure to be considered a subsidiary of that private equity firm for purposes of the tax. This means that these companies would now be swept up in the new 15 percent tax on book income.

    This provision would greatly expand the reach of the book minimum tax to apply to small and midsize companies that require capital investment to grow their business.

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https://www.breitbart.com/politics/2022/08/06/analysis-latest-version-of-senate-democrats-reconciliation-bill-raises-taxes-on-small-businesses/

[Killer Clouds]

So the Inflation Reduction Act causes higher inflation? Of course we all knew that. The Democrat Communist Party has no idea what causes inflation or how the economy works because most of them have never done anything other than politics.

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Dems working on last-minute tax changes to social spending bill, as vote-a-rama drags

Senate Democrats are considering making last-minute changes on the corporate minimum tax provisions in their social spending and tax bill.

The negotations are dragging the chamber's vote-a-rama out longer than anticipated, leaving more room for things to go awry for Democrats as they try to rush the bill to passage, according to Fox News Chad Pergram.

Republicans have been saying that the corporate tax rate, as it appears in the bill text released by Democrats Saturday, would apply to subsidiaries of major companies -- not just billion dollar companies as Democrats initially said.

Now, Fox News' Kelly Phares reports that Manchin and Sinema have been meeting with Senate Republican Whip John Thune, R-S.D., during the day.

"It's just adjustments being made in order, you know we're still trying to keep the numbers and everything what we have," Manchin told reporters late Sunday morning. "There's some maneuvering going on."

Talks still appear to be fluid, but the Senate continues to add amendments to its vote-a-rama, meaning it's unclear when the marathon session could end.

Posted by Tyler Olson