New minimal tax may hit Berkshire Hathaway and Amazon hardest, research reveals

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 research from the College of North Carolina Tax Heart used previous securities filings to map the tax, which works 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 primarily based on its 2021 earnings.

The research notes the restrictions of trying solely at public firm knowledge inside a single yr. 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 yr.

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

In accordance with the research, the next-highest taxes can be paid by Ford, AT&T, eBay and Moderna, all of which might owe greater than $1.2 billion in funds primarily based on their 2021 financials.