EDIT, turns out we can edit offending posts to return to center as it were. If you click on the orange pencil in the upper right hand corner you see the original post.
So I have removed the link and left up the main topic intact. The tax hike is very purposeful to head off inflation. This is a decades old well studied approach to inflation. This change in the tax structure and rates would have been well quantified in advance of the IRA’s passage.
Note there were several other changes to the earned income brackets.
Increase in corporate tax rate
The new effective tax rate would be 28%, effective for tax years beginning after December 31, 2022. For taxable years that begin after January 1, 2022 and before January 1, 2023, only the portion of the taxable year in 2023 would be subject to the 28% tax rate.Aug 16, 2022
I can’t believe I’m saying this, but I agree with Leap1. I don’t see any overt partisan politics here.
I had to unmute Leap to see and read the article. IMHO, the article is garbage and poorly written. The first line of the article is a mess: New tax legislation under consideration by Congress is included in the Inflation Reduction Act, which was signed into law by President Biden in August 2022.
Is the legislation under consideration or was it signed into law?
But it also doesn’t contain partisan politics. Yes, it mentions the current President by name, as he is the one who signed the bill into law. But the first third of article itself is an attempt to explain the enacted law. The rest does discuss proposed changes in the Treasury Department’s “Green Book”, but the discussion itself is very free of partisan wrangling. For each proposed change, it briefly describes the current law and then has a slightly longer discussion of the proposed changes.
I would let the post stand as a testament to US Bank’s inability to write cogent sentences. I wouldn’t put much faith in the bulk of the article, but correctness or incorrectness of posts (or linked articles) has not really been a criteria for removal of posts from TMF.
This is a very important macro economics topic. The small tax hikes are the reason in any reality that inflation will come down next year. Certainly the FED is not the reason.
It is just a cheap summary of the new tax rules. The influence of those rules is the subject lost to the link.
We all have been dancing around and around wringing our hands over inflation. This is the main tool the powers that be have to slow the inflation down dramatically in 2023. Yes the inflation had been well studied before this act became law.