The National Waste & Recycling Association (NWRA), Arlington, Virginia, joined the U.S. Chamber of Commerce and other associations in a letter to members of Congress urging them to oppose the Inflation Reduction Act of 2022. The bill passed the Senate on Aug. 7 and is awaiting approval by the House of Representatives.
“We recognize that various provisions of the legislation are being updated,” says NWRA President and CEO Darrell Smith. “NWRA calls upon members of Congress to reject the misguided corporate book minimum tax. Increasing taxes on American job creators during a time of economic uncertainty has historically proven to be a costly mistake for our nation.”
The legislation’s goal is to reduce the deficit and lower inflation while investing in domestic energy production and lowering health care drug costs. In a statement released earlier this week, President Joseph Biden said the bill would reduce the deficit by more than $300 billion. This includes near-term deficit reduction that would also reduce near-term inflation.
However, the association says the Inflation Reduction Act of 2022 includes taxes that would discourage investment and undermine economic growth. Additionally, it would have little to no impact on inflation and may increase inflationary pressure in the near term.
The letter says enacting the proposed tax would be the antithesis of sound tax policy and administration. Its introduction would be neither simple nor administrable and would pose a competitive disadvantage to U.S.-headquartered businesses while increasing the incidence of unrelieved double taxation. It would also have a detrimental effect on the quality of financial reporting.
Book income reporting standards are set by the Financial Accounting Standards Board (FASB), a nonprofit, private sector organization. The letter states conforming taxable income to the book income standards set by FASB would outsource standards for tax purposes that Congress should be setting. It would also contradict decades of practice in the accounting and auditing fields.
“This is the absolute wrong time to increase taxes on American job creators or implement price controls on American innovators,” the letter states. “We urge Congress to reject this misguided legislative package.”