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Congress Votes to Raise Taxes on Businesses

On Aug. 12, Congress passed the Inflation Reduction Act along part lines, with a vote of 220-207. The bill, which passed the Senate the week prior with a vote of 51-50, includes a bevy of energy subsidies and price controls on medicine, in addition to establishing higher taxes on businesses in the form of a higher minimum book tax which will disproportionately affect capital intensive businesses like telecommunications, utilities and energy producers, and a new tax on stock buybacks.

Pennsylvania’s delegation was split on the vote with Senator Bob Casey and all Democratic House members a yes, and Senator Toomey and Republican House members voting no.

The previous day, the PA Chamber joined dozens of associations and business groups across the country in a letter to House leadership expressing opposition to the tax provisions of the bill. The US Chamber noted in its letter to House members noting it will recorded on the scorecard that “the benefits of [the legislation’s climate and energy] provisions do not outweigh the negative impacts of the [tax] provisions.  We urge you to support American businesses in their efforts to invest, create jobs, conduct research and development, and innovate.  Reject this misguided legislation.

Source: PA Chamber of Business & Industry.  "Congress Votes to Raise Taxes on Businesses." The Sentinel, August 15, 2022, accessed August 15, 2022.  https://www.pachamber.org/media/6451/congress_votes_to_raise_taxes_on_businesses/