Berkshire Hathaway Chairman Warren Buffett is seen on the annual Berkshire Shareholder Buying Day in Omaha, Nebraska, US on Might 3, 2019.
Scott Morgan | Reuters
The researchers utilized the Inflation Discount Act’s new 15% company minimal tax to corporations’ 2021 earnings and located that the burden could be felt by solely 78 corporations, leaving Berkshire Hathaway And Amazon Paying essentially the most.
University of North Carolina Tax Center study Used earlier securities filings to map the tax, which takes impact in January on corporations’ 2021 earnings.
The researchers discovered that the underside 15% would have taken a complete of $31.8 billion from 78 corporations in 2021. Berkshire led the estimated payout with $8.33 billion, and Amazon adopted with $2.77 billion due based mostly on 2021 earnings.
The examine notes the constraints of taking a look at public firm knowledge in its entirety inside a single yr. The researchers acknowledge that these estimates could also be topic to alter, significantly as the corporate’s operations change below the tax in 2023.
President Joe Biden Signed the minimum book tax into law, along with the rest of the Inflation Reduction Act, in August.. The tax is particularly supposed to focus on corporations with revenues of greater than $1 billion per yr.
Joint Committee on Taxation First guessed That it’ll have an effect on about 150 corporations, particularly with prices on the development business. The bipartisan JCT additionally predicted $34 billion in income within the first yr of the tax, barely increased than UNC’s projected theoretical 2021 income.