Federal Business Taxes Will Increase This Year Unless Congress Acts
According to the nonpartisan, nonprofit Tax Foundation, unless the U.S. House of Representatives and Senate act, many federal taxes that industrial metals companies and other businesses pay will rise in 2023.
This list includes the amortization of research and development expenses that Connecting the Dots discussed here, tightened net interest deduction limit, and the phase-down from 100 percent to 80 percent bonus depreciation. The increased research and development burden alone will cost businesses $32 billion if it is not eliminated retroactively.
The higher tax burdens will hit businesses at a time when economic headwinds are already strong. The higher taxes also will impact the competitiveness of U.S.-based businesses. In fact, combined with the Inflation Reduction Act’s new and complex minimum tax on financial income that Connecting the Dots reported on last year, the United States’ ranking in terms of tax competitiveness would fall to 24th out of the 38 developed countries that the Tax Foundation tracks.
Congress may consider legislation this year to address (and hopefully ease) these tax burdens. Stay tuned to Connecting the Dots as that legislation takes shape.