Biden Signs Inflation Reduction Act Into Law
On Tuesday, August 16, President Joe Biden
signed
the Inflation Reduction Act of 2022 into law.
The Inflation Reduction Act aims to reduce health care costs and address climate change and is paid for with the package’s tax plan involving a 15 percent minimum tax on the income that big companies report to shareholders. The tax would exempt companies taking advantage of accelerated depreciation, which was included to secure the support of Sen. Kyrsten Sinema (D-AZ). The bill also places a 1 percent excise tax on stock buybacks and includes increased funding to the IRS— $80 billion to increase enforcement and another $15 million to fund a task force on determining how the IRS can deliver a “direct e-file tax return system.” For more details on what is included in the bill, see
here.
The Convenience Distribution Association (CDA) signed onto a
letter
led by the Main Street Employers Coalition along with 70 other trade associations in opposition to the legislation. The letter highlights the
various tax provisions
that are harmful to the small and family-owned business community.