New minimal tax might hit Berkshire Hathaway and Amazon hardest, examine exhibits

Researchers utilized the Inflation Discount Act’s new 15% company minimal tax onto 2021 firm earnings and located that the burden would solely be felt by about 78 corporations, with Berkshire Hathaway and Amazon paying up probably the most.

The examine from the College of North Carolina Tax Heart used previous securities filings to map the tax, which fits into impact in January, onto corporations’ 2021 earnings.

The researchers discovered that the 15% minimal 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 follows behind with $2.77 billion owed based mostly on its 2021 earnings.

The examine notes the constraints of wanting solely at public firm information inside a single 12 months. The researchers acknowledged that these estimates could also be topic to vary, particularly as firm operations change underneath the tax in 2023.

President Joe Biden signed the minimal e book tax into legislation, together with the remainder of the Inflation Discount Act, in August. The tax is particularly meant to focus on corporations incomes greater than $1 billion per 12 months.

The Joint Committee on Taxation had beforehand estimated that it could have an effect on round 150 corporations, with the prices falling particularly on the manufacturing business. The bipartisan JCT additionally predicted $34 billion in income within the first 12 months of the tax, barely greater than the theoretical 2021 income estimated at UNC.

Based on the examine, the next-highest taxes could be paid by Ford, AT&T, eBay and Moderna, all of which might owe greater than $1.2 billion in funds based mostly on their 2021 financials.