To pay for historic climate investments, legislation passed in the Senate on Sunday imposes a minimum corporate tax of 15% and a 1% tax on stock buybacks.
Businesses that pay low effective tax rates — such as healthcare and technology companies — would be hit harder, the bank said.
Overall, Goldman Sachs said the net fiscal impact of the Cut Inflation Act “appears very modest,” translating to less than 0.1% of GDP over the next few years. That’s because new spending and new taxes “roughly offset it,” the bank said.
CEOs step in
The results contrast with warnings from some major business groups who have argued that the new tax provisions will backfire.
“Imposing more than $300 billion in tax increases during a recession is the wrong policy at the wrong time,” Business Roundtable CEO Joshua Bolten wrote in the statement, noting that the US economy has faced to two consecutive quarters of falling GDP and “remains at risk”. of a prolonged economic decline.”
The American Petroleum Institute, the largest oil and gas trading group, said this weekend it was “encouraged” by the extension and expansion of carbon capture tax credits and provisions on onshore and offshore lease sales.
However, API said much-needed permit reform was “conspicuously absent” from the bill and criticized its tax provisions.