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A number of business taxes are rising just as US economy faces an increased risk of a recession threatening to prolong financial hardship for many businesses and consumers.

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Starting this year, businesses will face a larger federal tax burden thanks to several major changes included in the health care and climate change bill. Democrats passed in summer. In addition, this year it is planned to phase out the key provisions of the 2017 republican tax reform.

Combined, the tax hikes will cost businesses about $115 billion this year, a significant increase from previous years, the Joint Committee on Taxation forecasts.

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“We’re very concerned about the impact of tax hikes during a recession,” Chris Netram, managing vice president of taxes and domestic policy at the National Association of Manufacturers (NAM), told FOX Business. “Some of the clauses that are already in force, which Congress failed to abolish caused a lot of pain to our members at the end of last year.”

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Among the increases taking effect this year are 15% minimum corporation tax this is based on the earnings they publicly report in their financial statements to shareholders. The minimum accounting tax will only affect companies that report more than $1 billion in revenue. The levy — a key feature of the Inflation Reduction Act — will affect about 200 of the nation’s largest corporations with profits in excess of $1 billion and that pay less than the current 21% rate, Democrats said.

This spending bill also included a 1% tax on share buybackwhich will only apply to public companies.

Experts expect these two taxes to impact earnings in 2023. Goldman Sachs forecasting a decline of 1.5% per share of S&P 500 companies. The decline in earnings is expected to affect industries such as healthcare and information technology due to the low effective tax rate.

Meanwhile, UBS strategists led by Solita Marchelli predict that the new taxes will offer “a minimal 1% resistance to S&P 500 earnings per share, although some companies will be hurt more than others.”

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These changes are on top of other business tax increases introduced last year to help pay 2017 Republican tax cuts and will be valid until 2026. This includes phasing out the 100 percent depreciation premium, tighter limits on interest deductions and higher international tax rates.

Another provision requires businesses to amortize research and development contributions over five years, rather than taking them all at once. In November, some 180 CFOs asked lawmakers to change course and repeal the law before the end of the year, but Congress failed to reach an agreement before its last meeting in December.

Aerospace and defense company Raytheon Technologies said in October that the change had already increased its tax bills by $1.5 billion.

Raytheon

Goldman Sachs Sees R&Dinterest rate and bonus depreciation changes that raise the effective corporate tax rate by 1.6 percentage points this year, corresponding to a “slight” reduction in earnings.

“Corporate tax policy going into effect in 2023 should have a small impact on S&P 500 total earnings, but the impact will vary by sector,” the bank said in a research note earlier this month.

Netram said NAM is lobbying lawmakers to reverse the changes, especially around research and development, and indicated that there is bipartisan and bicameral support for this.

“For this Congress, we are starting in a very strong position,” he said. “There is broad support for preventing these tax increases from taking effect.”