August 17, 2022 - Douglas Myser

Inflation Reduction Act and taxes. After years of the public complaining about the rich not paying their fair share of taxes, the new Inflation Reduction Act will add a little more to the amount that those earning over $400,000 and large corporations have to pay to the IRS. The bill will also change certain tax policy and add billions to fight climate change, President Biden's campaign pledges. It was widely held that Corporations and the rich were not paying their fair share of taxes. By not doing so, it was eroding the confidence of the tax system, and reducing the amount the government could spend subsequent to the biggest pandemic in the last 100 years. The invasion of Ukraine upended the notion that spending on defense was not necessary in a once peaceful world, but for America to remain competitive, we must also remember to spend on infrastructure and we must also put some money into our lagging education system. Inflation Reduction Act and taxes.

The 15% minimum corporate tax was being usurped by companies looking to book profits in the lowest country with the lowest tax rate. What became known as the "Race to the Bottom" was not getting the governments of the world the needed income they needed to solve many problems those countries faced. The United States was in the forefront to negotiate a minimum amount that corporations worldwide would have to pay, initially wanting 24% before settling on the 15% deal. It would have been higher but for the holdout of key Senators who were accepting large campaign contributions from large corporations.

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