Inflation Reduction Act of 2022

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:raising taxes during a recession?

The 15% corporate minimum tax only hits companies with profits of more than $1 billion per year, and operates as a business version of the AMT. Not sure the American people are going to have sympathy for them.

Simple, they pay more in taxes. They raise prices on the consumer to offset the higher tax burden. Consumer pays higher price at register screwing consumer. So they will simply pass this along and consumer will get hit with higher inflation. Does any one in this admin station actually take economics classes. Also, printing billion of dollars out of thin air tends to worsen inflation as well as it devalues the dollars in circulation.

This bill does nothing to fix inflation.

Ah yes, the old "look what you made me do" routine. Better just to keep our heads down and give corporations what they want or else they'll take it out on American consumers.

The GOP plan everybody! Act like meek, trembling, battered spouses, walking on eggshells around Apple and Coca-Cola because if we do anything that upsets them we'll get the back of their hand and it will be our fault. Such bravery! Such leadership!

[Anonymous]

This thread is a good example of why the politics forum on this board is so useless. Just a bunch of mindless team sports mentality. 9 months ago most of you were on here screaming bloody murder about Joe Manchin's slimmed down proposal. Now, here you are celebrating your "victory."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:raising taxes during a recession?

The 15% corporate minimum tax only hits companies with profits of more than $1 billion per year, and operates as a business version of the AMT. Not sure the American people are going to have sympathy for them.

Simple, they pay more in taxes. They raise prices on the consumer to offset the higher tax burden. Consumer pays higher price at register screwing consumer. So they will simply pass this along and consumer will get hit with higher inflation. Does any one in this admin station actually take economics classes. Also, printing billion of dollars out of thin air tends to worsen inflation as well as it devalues the dollars in circulation.

This bill does nothing to fix inflation.

Tax on profit does not work like that because it is not a part of cost. It does reduce the overall rate of business return but does not affect the company's EBIDTA or other key performance measures. Income based taxes reduce future invesent but does not add to cost and therefore is not inflationary. In fact, raising income taxes is deflationary if the taxes are used to pay off government debt.

[Anonymous]

Anonymous wrote:Bloomberg in 2021 said Biden’s spending on these bills will skyrocket inflation. This was predicted last year.

https://www.bloomberg.com/news/articles/2021-11-17/top-economists-see-biden-s-spending-plan-adding-to-inflation

November 2021 was a long time ago, BBB died. That was a different bill. This is new. I have not seen any robust or credible economic analysis predicting inflation as a result of passing this bill.

[Anonymous]

Anonymous wrote:Sinema is the only reason Biden was able to get an infrastructure and any gun legislation through. Thats the only significant legislative wins besides the American resscue plan.

The fact they didnt run this by her and announced something prematurely is a mistake. They really dont know how to manage expectations.

Lot's of assumptions in this post. But keep wishing it will fail. You must hate America.

[Anonymous]

Anonymous wrote:This thread is a good example of why the politics forum on this board is so useless. Just a bunch of mindless team sports mentality. 9 months ago most of you were on here screaming bloody murder about Joe Manchin's slimmed down proposal. Now, here you are celebrating your "victory."

Win the war, not just a battle. Joe Manchin sucks, but if we’re making incremental progress, we’re making incremental progress.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:raising taxes during a recession?

The 15% corporate minimum tax only hits companies with profits of more than $1 billion per year, and operates as a business version of the AMT. Not sure the American people are going to have sympathy for them.

Simple, they pay more in taxes. They raise prices on the consumer to offset the higher tax burden. Consumer pays higher price at register screwing consumer. So they will simply pass this along and consumer will get hit with higher inflation. Does any one in this admin station actually take economics classes. Also, printing billion of dollars out of thin air tends to worsen inflation as well as it devalues the dollars in circulation.

This bill does nothing to fix inflation.

Tax on profit does not work like that because it is not a part of cost. It does reduce the overall rate of business return but does not affect the company's EBIDTA or other key performance measures. Income based taxes reduce future invesent but does not add to cost and therefore is not inflationary. In fact, raising income taxes is deflationary if the taxes are used to pay off government debt.

Umm, the “T” in EBITDA is now not as helpful in evaluating a business. Looking at earnings without the effect of taxes in a world with a 15% minimum tax would be malpractice. You use EBITDA to attempt standardized valuation. Once tax impacts are standardized it simply makes no sense to include the T in EBITDA.

Study after study has shown that corporations are tax collectors not tax payers. Impose the tax or don’t—I don’t care. But to pretend this will have no impact is silly.

[Anonymous]

Anonymous wrote:Wow the ACA extension only cost $64 billion for 3 years? That’s a steal!

There are currently about 30 million uninsured in America. Some of them is due to their not qualifying for the tax credit and the cost of insurance in many areas having tripled under ACA.

[Anonymous]

This doesn't reduce inflation and actually may cause more as corporations need recoup tax increases and the additional injection of government money. Do you think the American people believe it? They should have called this a green and Corp tax bill. He'll be sorry when inflation continues

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:raising taxes during a recession?

The 15% corporate minimum tax only hits companies with profits of more than $1 billion per year, and operates as a business version of the AMT. Not sure the American people are going to have sympathy for them.

Simple, they pay more in taxes. They raise prices on the consumer to offset the higher tax burden. Consumer pays higher price at register screwing consumer. So they will simply pass this along and consumer will get hit with higher inflation. Does any one in this admin station actually take economics classes. Also, printing billion of dollars out of thin air tends to worsen inflation as well as it devalues the dollars in circulation.

This bill does nothing to fix inflation.

Tax on profit does not work like that because it is not a part of cost. It does reduce the overall rate of business return but does not affect the company's EBIDTA or other key performance measures. Income based taxes reduce future invesent but does not add to cost and therefore is not inflationary. In fact, raising income taxes is deflationary if the taxes are used to pay off government debt.

An explanation worth re-posting.

[Anonymous]

Anonymous wrote:This doesn't reduce inflation and actually may cause more as corporations need recoup tax increases and the additional injection of government money. Do you think the American people believe it? They should have called this a green and Corp tax bill. He'll be sorry when inflation continues

I don't you understand economics completely. It may not help A LOT, but it will not cause more.
"“It is perfectly reasonable to believe, as I do," Summers added, “that we should raise taxes to reduce demand to contain inflation and that the increases should be as progressive as possible.”


Indeed, raising corporate taxes would reduce corporate spending, lowering overall demand "and put downward pressure on prices,” said Michael Strain, an economist at the conservative American Enterprise Institute.

Still, Strain and other economists caution that it would take many months for any rate increase to have much impact, and even then, would not reduce inflation by much."

https://abcnews.go.com/Technology/wireStory/bezos-biden-spar-corporate-taxes-inflation-84759068

[Anonymous]

Anonymous wrote:This doesn't reduce inflation and actually may cause more as corporations need recoup tax increases and the additional injection of government money. Do you think the American people believe it? They should have called this a green and Corp tax bill. He'll be sorry when inflation continues

Like the "pro-life" religions opinions that GOP has enacted into bills in many state that is ending up killing women? How sorry is GOP?

[Anonymous]

Rose mount capital for the win!

[Anonymous]

[Anonymous]

The more people look into this plan, the worse it gets.

https://www.finance.senate.gov/imo/media/doc/jct_distributional_effects_inflation_reduction_act.pdf