Bill Overview
Title: Repealing the Ill-Conceived and Problematic (RIP) Book Minimum Tax Act
Description: This bill repeals the 15% alternative minimum tax on corporations enacted by the Inflation Reduction Act of 2022.
Sponsors: Sen. Barrasso, John [R-WY]
Target Audience
Population: People affected by large corporations shifting their financial strategies
Estimated Size: 200000000
- The original legislation imposed a 15% minimum tax on corporations with over $1 billion in income.
- This affected large corporations, potentially influencing their tax strategies and financial planning.
- It also indirectly affected shareholders, employees, and possibly consumers through pricing strategies.
- Repeal of this tax could change how these corporations allocate financial resources.
- Potential impacts include changes in corporate investment and hiring patterns that could affect economic growth.
Reasoning
- The repeal of the minimum tax affects large corporations, altering their financial strategies.
- Affects shareholders, employees, and consumers through altered pricing and investment strategies.
- Directly impacts high-income individuals working in corporate sectors or closely tied to these corporations.
- Budget constraints suggest only the most strategic financial shifts will benefit, limiting immediate widespread economic effects.
- Policy mainly benefits high-income individuals in corporate positions, with indirect effects on general population through potential corporate growth and investment.
- Interview respondents were chosen to represent a diverse understanding of these impacts.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I think repealing this tax will allow our company to invest more in growth and innovation.
- As a shareholder, I expect to see our dividends increase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Software Engineer (Austin, TX)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- I don't think this change in corporate tax policy will affect my job or personal finances directly.
- I hope any corporate investments passed down to tech would bring more stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Los Angeles, CA)
Age: 32 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- These changes seem to benefit companies much larger than mine.
- Perhaps lower corporate taxes could eventually lower costs for suppliers we work with.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Corporate Lawyer (Chicago, IL)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- The repeal will make financial planning easier for the clients I help, improving their profitability.
- It might lead to an increase in business as companies adjust their strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Retired (Atlanta, GA)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- From an investment perspective, reducing corporate taxes can increase the value of my portfolio.
- I expect some short-term gains, but unsure about long-term impacts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Recent College Graduate (Miami, FL)
Age: 25 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- The policy change doesn't feel directly relevant to my situation right now.
- If corporations hire more, it could mean more opportunities for me down the line.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Tech Executive (San Francisco, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Repealing the tax frees up capital for innovation and expansion in key tech areas.
- Could lead to new opportunities and increased profitability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Public School Teacher (Denver, CO)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- Corporate tax rates don't typically impact funding or policies within education directly.
- Any economic improvements could potentially benefit public funding, though indirectly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Health Insurance Analyst (Boston, MA)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- If corporations invest more in employee benefits, it could affect healthcare strategies.
- Tax policies indirectly influence the economic landscape we operate in.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Environmental Scientist (Seattle, WA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- More profits might mean worse environmental outcomes if investing less in compliance.
- Concerned that tax savings might not be directed towards sustainable practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $10000000000 (Low: $8000000000, High: $12000000000)
Year 2: $10200000000 (Low: $8200000000, High: $12500000000)
Year 3: $10400000000 (Low: $8400000000, High: $13000000000)
Year 5: $10800000000 (Low: $8800000000, High: $13500000000)
Year 10: $11600000000 (Low: $9500000000, High: $15000000000)
Year 100: $15000000000 (Low: $12500000000, High: $17500000000)
Key Considerations
- Long-term economic growth depends on how corporations utilize the increased available cash flow from tax savings.
- Repealing the tax may influence corporate decisions regarding capital investments and workforce expansions.
- Potential risks include increased income inequality if corporations prioritize dividends over investments benefiting broader economic growth.