December 8, 2022

Brighton Journal

Complete News World

Study shows new tax minimums could hit Berkshire Hathaway and Amazon hard

Study shows new tax minimums could hit Berkshire Hathaway and Amazon hard

Berkshire Hathaway Chairman Warren Buffett at the annual Berkshire Shareholders’ Shopping Day in Omaha, Nebraska, US, May 3, 2019.

Scott Morgan | Reuters

The researchers applied the new minimum corporate tax rate of 15% to the Reducing Inflation Act on company profits for 2021 and found that the burden would only be felt by about 78 companies, with Berkshire Hathaway And the Amazon pay more.

Study from the University of North Carolina Tax Center Previous stock filings were used to map the tax, which will take effect in January, on corporate earnings for 2021.

The researchers found that a minimum of 15% would have taken a total of $31.8 billion from 78 companies in 2021. Berkshire topped the estimated payments with $8.33 billion, followed by Amazon with $2.77 billion due based on its 2021 earnings.

The study notes the limitations of only looking at the company’s public data within one year. The researchers realized that these estimates may be subject to change, particularly as the company’s operations change under the tax in 2023.

President Joe Biden I signed the minimum book tax into law, along with the rest of the Inflation Reduction Act, in August. The tax is specifically intended to target companies that earn more than $1 billion annually.

joint tax commission have already estimated It will affect about 150 companies, with lower costs specifically on the manufacturing industry. The bipartisan JCT also forecast revenue of $34 billion in the first year of the tax, slightly more than the theoretical 2021 revenue estimated by UNC.

See also  Fourth of July travelers face thousands of flight delays, cancellations, and rising gas prices across the US

According to the study, the following highest taxes will be paid strongholdAnd the AT&TAnd the ebay And the Modernawhich all owe more than $1.2 billion in payments based on their 2021 financial statements.