Last week, President Biden signed the Inflation Reduction Act into law, which Congress passed earlier this month with party line votes. The law includes a wide array of energy subsidies and price controls on medicine, in addition to establishing higher taxes on businesses in the form of a higher minimum book tax which will disproportionately affect capital intensive businesses like manufacturers, telecommunications, utilities and energy producers, and a new tax on stock buybacks.
Pennsylvania’s delegation was split on the vote with Senator Bob Casey and all Democratic House members a yes, and Senator Toomey and Republican House members voting no. In the wake of the law’s enactment, progressives in the U.S. House are expressing strong opposition to permit reforms, which Senator Manchin and Senate Majority Leader Chuck Schumer promised Congress would take up later this fall as part of the deal.
Earlier this month, the PA Chamber joined dozens of associations and business groups across the country in a letter to House leadership expressing opposition to the tax provisions of the bill. The PA Chamber also expressed its concern on the tax implications of the bill, along with Congress’ departure from successful bipartisan legislating that has been on display this session, in an op-ed published in the Pittsburgh Tribune Review earlier this month. The US Chamber noted in its letter to House members noting it will recorded on the scorecard that “the benefits of [the legislation’s climate and energy] provisions do not outweigh the negative impacts of the [tax] provisions. We urge you to support American businesses in their efforts to invest, create jobs, conduct research and development, and innovate.”