U.S. Senate Democrats’ so-called “Inflation Reduction Act,” about which there’s low confidence that the legislation will have any positive impact on the rate inflation (currently at a 40-plus-year high of 9.1%), according to the nonpartisan Penn Wharton Budget Model (PWBM), also contains a proposed 1% levy on corporations’ share repurchases will force chief financial officers to think twice about how they use their cash.
In April, Apple’s board of directors authorized an increase of $90 billion to the company’s existing buyback program.
The bill also proposes that corporations with at least $1 billion in annual income will have a new corporate minimum tax rate of 15% which, of course, will not be paid by corporations but instead passed on to consumers in the form of higher prices and/or to employees in the form of lower annual raises and/or reduced corporate profits which could hurt employees’ 401(k) and other investors’ mutual funds.
According to the Congressional Budget Office (CBO), a federal agency that provides budget and economic information to Congress, the bill would barely make a dent on inflation in the near term — and could even nudge it upward.
If the bill passes in 2022, the CBO estimates that it would have a “negligible effect on inflation,” and in 2023 it would change inflation somewhere between 0.1 percentage point lower and 0.1 percentage point higher than it is currently.
The CBO also estimates the bill would decrease the deficit by more than $100 billion over the next decade. The federal government ran a deficit of $2.8 trillion in 2021, according to the Bipartisan Policy Center.
For further perspective, the U.S. has already committed $54 billion to Ukraine since the Russian invasion. In 2021 alone, not over a decade, the U.S. federal government spent $100 billion on highway grants ($43 billion) and health insurance premium tax credits ($57 billion).
Joe Woelfel and Rupert Steiner for Barron’s:
It is set to be a record year for U.S. buybacks, with some $1.2 trillion forecast to be spent, including bumper programs under way at Apple and Google owner Alphabet.
When choosing how to reward investors, companies like buybacks compared with dividends because they increase per-share measures of earnings and cash flow and benefit return on equity. They can be directors’ way of trying to put a floor under the share price—although they look wasteful if the stock drops.
For investors, buybacks result in capital gains that may never be taxed at all, whereas dividends require income tax to be paid.
MacDailyNews Take: As with most bills proposed in the U.S. House and Senate over past decades, this one is egregiously misnamed and may actually end up causing the exact opposite of its titled intention.
Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
We’ll find out at the end of next April, when Apple normally updates its annual capital return program, if Apple’s buyback program is affected by passage of the bill.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
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The Inflation Promotion Act is backed by 51 vapid, cackling fools who couldn’t pass Economics 101 if their lives depended on it.
Rightfully so, this latest disaster won’t get a single Republican vote.
Within months, the Republicans will take then over the House and Senate for many, many years. Within a few years, the GOP will take back the stolen White House and the Second Reagan Revolution will commence!
Fingers crossed you’re right. Unfortunately the Demonrats are proven cheaters and liars. They need to be jailed, hung, shot, cremated and buried. There’s no common ground anymore. Demonrats are just devils incarnate. No rules apply to them. Hunter can do whatever he wants, literally, he could shoot someone on 5th Avenue, while smoking three crack pipes, pleasuring himself with three pros and putting the finish touch on his latest art work, using his, erm, big pencil, and nothing happens.
Demonrats have to go. Deport them to the kinds of places they’ll really thrive in – North Korea, Cuba, China, heck, even Canada.
Civil war, sadly, is on the way. The Demonrats will strike first, but Americans will finish the job and ensure Demonrats can never destroy America again.
Asscynic, you are just a libturd. Nobody cares about your attempts at insults
Demonrats downvoting this proves they are out there, plotting away. Americans are going to find Demonrats and wipe them out. Demonrats themselves are not American, but are traitors. Socialist commies need to be wiped out. Demonrat thinking is a virus. They are a cancer on society. They are evil. Just look at blundering, blithering Biden, the dumb, dementia-laden dunderhead who is a conniving, con-artist crime-family head.
The mafia is jealous of Biden’s way of doing business, proving the biggest thugs are in govt.
People who love the Demonrats are seriously disturbed and a threat the America. The Demonrats will be the first to start a civil war but Americans will Finish it and make sure evil dumb democrunts are locked up permanently. 🤣🤣😂😂
“Demonrats downvoting this proves they are out there, plotting away.”
Or it just proves they are around here daily carrying out their “plot” to downvote anything Republican and Upvote anything Democrat.
Just look around the political responses here, day after day, where most Republican responses are not higher than two stars. While the Democrat posts are always four stars and higher. EXHIBIT A: Your spot on post is lower than two stars.
Pitiful FAKE VOTES, like the rest of their DISHONEST FAKE LIVES, means absolutely NOTHING…
I’ll let you know that dissenting opinions have been removed. Again,
Yes, you should be removed.
So where’s your evidence? Are you saying MDN runs a shoddy website or are you delusional enough to think the majority of Apple enthusiasts are Trumpies? Simple fact is the site-backed troll hellbent on carrying water for Trump wastes tons of time talking to himself and not a smidgen of time discussing Macs. Add the incivility to the off topic manure, and it’s no surprise the vote tallies don’t support your bitter misinformed mud slinging group. So sad, cry harder.
You’re the sad loser. Leftist waṉks just open up a private tab and downvote. Then they open up another private tab and downvote. It’s some China-backed Bidenentia-loving downvote factory. It’s downvote fscktory. It’s fscked.
Hey loser who hates GoeB, just look at the votes below. One of your cork-soaking bunchums who has too much time on their hands just generates enough downvotes to take each one against democrat losers down to two stars.
Even this post will end up with two or fewer stars. It’s not a sign of a true segment of MDN readership. It’s the action of one or more mindless zombies who love soaking Democrat cork.
If this bill passes and when it soon becomes clear that it will have the exact opposite effect intended, the Democrats will claim that the bill failed because it didn’t go far enough. Then they will propose even more taxes! It’s Einstein’s definition of insanity.
It’s insane that Demonrats are allowed to even be in politics.
Leave it to the uniformed extreme righties here to complain about a bill that will help incentivize corporations to distribute dividends to ALL stakeholders, not just burn corporate income in stock buybacks that primarily reward only the executives that have rewarded themselves insane stock grants when you weren’t looking. Corporate management theft from other stakeholders has been one of the greatest transfers of wealth in history and you didn’t even see it.
You complain about everything Cook has ever done, but you always fail to mention that almost all hired CEOs (Cook, Musk, Immelt, you name it) have ALL become billionaires because of stock theft they directed for themselves, with the aid of their lapdog board compensation committees. BILLIONAIRES.
And the last administration rewarded the graft and offshoring.
The only ones who have anything to fear from the IRA bill are tax cheats and self-serving corporate executives. The rest of Americans should rejoice the long overdue investment in energy independence and tax sanity. FINALLY
⏫ This 💯%
The swamp has almost killed off our small towns, our economy and our rights.
Go KARI LAKE !
This latest Democrat Disaster will negatively impact U.S. manufacturing companies, who spend lots on upfront capital investments. The Tax Foundation says this bill will kill 30,000 American jobs.
This POS bill will also reinstate the long-expired, failed superfund tax on crude and imported oil, which will also be tacked onto Americans’ already sky-high and increasing energy bills.
This bill is the Democrats’ last damaging hit to America before they are banished into the wilderness for at least a decade or, hopefully, longer.
I love how the ‘government’ just changes rules on a whim.
QUIT. CHANGING. THE. FxxxING. RULES.!
Time for a few treason charges and some executions.
New YouGov survey:
Only 12% think the “Inflation Reduction Act” will reduce inflation, while three times as many (36%) think it will make inflation worse.
The only legislation that Democrats are offering now is widely perceived at either not at all addressing the 40-plus-year inflation they’ve created or making it worse.
Enjoy the midterms! I know I will!
I love the vpn voting by the always cheating leftists. That then are compulsive to do it brings me joy and proof of their pathetic news. Funny, they’re always whining that this is a right wing blog, yet AMAZINGLY the voting magically always works out. Bwahahahaaaaa. Keep clicking losers. We love to see your pathetic compulsions.
Also, this is now a communist run regime. America died on Jan 20, 2021.
Zombie, you assign too much intelligence to dumb-ass Dems. No VPN required bro, just go into private mode on your browser.
Open a new private tab to rinse and repeat.
The problem is that too many left wing bozos read the site, which is obviously proudly maintained by smart right-thinking MDN’ers
Interesting that you are so locked into your anti-Trump memes that you can’t even tell the difference between “communist” and “communist-run.” They are VASTLY different terms.
Only in your dreams. You people never stop with the conspiracy theories with no facts to support them.
America is capitalist run by the rich for the rich. Most Americans are pissed off because they are marketed stuff they can’t afford, but the rich fat cats doing the marketing use the old trick: blame native poverty not on corporate outsourcing, blame anyone and everyone who isn’t born in America. There is maga (and fascist) playbook in a nutshell. You love it.
But you haven’t proved those evil other scapegoats stole your pie. You have not identified a commie in control, and nothing about the economic model suddenly changed when Donny lost. Yeah, facts prove that too. But you would have to know what a fact is. This site now specializes in gross political stupidity instead of Macs.
Whomever is creating these policies in the WH is following – nearly exactly – what was done in Venezuela to destroy the country and create a Dictatorship.
Flood the market with money, claiming people need help and it will stimulate the economy. All it did was spark inflation to record levels.so they kept doing it more “You need more help!” Biden is doing EXACTLY the same people. Duh, duh, duh…
Next step? We must raise minimum wage to counter the inflation we created. This created even higher prices in Venezuela. Biden will push for a much higher nation-wide minimum wage. Just watch.
If you are a Dem or just have your head stuck in the sand, wake up. This admin is Obama 2.0 on steroids, hiding behind a Dementia-laden man people this perceive as harmless, when in reality this WH destroy America ideology is doing exactly that.
Based on the asinine, pathetic, CHILDISH, uneducated political drool/hate postings on this topic, I finally realize this site is WAAAYYY to biased for my liking. Not an intelligent comment to be seen, more like the majority of your viewers are pre-pubscent twits without a cognizant thought in their under-developed brains.
And the comment ‘will not be paid by corporations but instead…’ is incorrect. Companies WILL pay AND treat their customers poorly by passing costs to consumers.
Adios, MaDailyNews.
Good riddance, fool
When people upvote to say “adios MDN” then please eff off.
Reading “Atlas Shrugged” years back, I almost considered it a comedy. Surely, no politician would EVER be this incompetent?
And to say that laws accomplish what you say, simply because that’s what you named it?
Well that part, at least, is the fault of Low IQ voters.
Atlas Shrugged was prescient. It was a predictor of a future to avoid, like 1984, Brave New World efc
New chapters showing the inanity of big government-loving socialists are being written here as MDN commenters shrugged.
Democrats… a cancer on humanity. Mind virus overload.
Interestingly, also like “Humanae Vitae,” which most people overlook. https://www.vatican.va/content/paul-vi/en/encyclicals/documents/hf_p-vi_enc_25071968_humanae-vitae.html
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