New York
CNN
—
Even as some business groups cry foul over the tax provisions in the Inflation Reduction Act, economists at Goldman Sachs say the landmark bill will barely put a dent in massive corporate profits.
To pay for historic climate investments, the legislation that passed the Senate on Sunday imposes a 15% minimum corporate tax and a 1% tax on stock buybacks.
But the fallout from these tax provisions will be minimal, according to Goldman Sachs
(GS). The buyback tax and minimum corporate tax will lower per-share profits next year among S&P 500 companies by just 1.5%, according to a Goldman Sachs
(GS) analysis published early Sunday.
Companies that pay low effective tax rates – such as health care and technology firms – would see a bigger hit, the bank said.
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