Biden’s New Tax Law Could Pinch Warren Buffett’s Berkshire, Amazon the Most, Says Study

The new 15 percent corporate minimum tax would impact nearly 80 companies with Berkshire Hathaway Inc. and Amazon.com, Inc. paying up the most, according to a study conducted by the University of North Carolina Tax Center, as reported by CNBC.

Estimated Payout

The study estimated that approximately 78 firms would have been subject to the tax, which would have raised approximately $31.8 billion, had the minimum tax applied to 2021.

The estimated payout by Berkshire would have been over $8.3 billion while that of Amazon.com, Inc. stood at over $2.7 billion, the study said.

In August, President Joe Biden signed the minimum book tax into law, along with the rest of the Inflation Reduction Act. The tax is meant to target companies earning over $1 billion per year.

Other Companies

The study estimated that the next highest taxes would be paid by Ford Motor Company, AT&T Inc. and eBay Inc., with each company owing more than $1.2 billion in 2021.

The Joint Committee on Taxation had earlier estimated that the minimum corporate tax law would affect around 150 firms, with the costs falling specifically on the manufacturing industry, the CNBC report said. The JCT also estimated $34 billion in revenue in the first year of the tax, slightly higher than the theoretical 2021 revenue estimated at UNC, it said.

By Bhavik Nair

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