WASHINGTON – As the $313 billion Book Minimum Tax in the Schumer-Manchin Inflation Reduction Act will fall heavily on American industries and further harm the economy, AXPC CEO Anne Bradbury released the following statement in opposition to the new tax:
While the Inflation Reduction Act makes complicated changes to tax code, the outcome for the American people will be straightforward: higher taxes and higher energy prices – and less investment and fewer jobs during a recession and record high inflation.
Like many other American industries, oil and natural gas companies benefit from accelerated US cost recovery in the tax code which encourages investment and job creation for capital intensive industries.
According to the non-partisan Joint Committee on Taxation (JCT), 49.7 percent of the book minimum tax would fall on manufacturers, hitting American companies with a $52.6 billion tax increase in 2023 alone. Ultimately, this tax would be passed down to the American people, through higher prices.
Another estimate from the National Association of Manufacturers (NAM) found that the book tax would eliminate over 218,000 jobs and reduce GDP by $68 billion.