Missouri Chamber of Commerce calls Inflation Reduction Act a ‘tax hike’ for businesses

JEFFERSON CITY, MO (KMIZ)

The Missouri Chamber of Commerce has gone public with its opposition to Congress passing the Cut Inflation Act, saying it would mean higher taxes on state operations.

The Senate over the weekend approved a $750 billion health care, tax and climate bill from Democrats, known as the Cut Inflation Act. The bill now goes to the House. This legislation represents the largest climate investment in U.S. history, while changing health care policies and giving Medicare the ability to negotiate prices for certain prescription drugs.

The legislation would include a 15% minimum tax on large corporations and a 1% tax on stock buybacks while increasing the Internal Revenue Service’s ability to collect taxes.

The new bill could generate more than $700 billion in government revenue over 10 years, according to estimates.

The Missouri Chamber of Commerce said in a press release Monday that manufacturers would be hit hardest, with nearly half of the new tax burden falling on the manufacturing industry. The Chamber of Commerce says the legislation is moving quickly through Congress and the House of Representatives is expected to vote in the coming days.

In Missouri, the chamber signed a letter opposing the legislation and asking the state‘s congressional delegation to oppose business taxes.

“It is important that we unite against this increase in federal taxes,” House Speaker and Chief Executive Dan Mehan said in a statement Monday. “We’re asking the Missouri business community to reach out to members of Congress as soon as possible and let them know that the Cut Inflation Act is bad for jobs and bad for businesses in Missouri.”

Congressional Democrats who support the legislation say the tax increases help ensure the wealthy pay their share. The corporate minimum tax would apply only to those with annual profits over $1 billion.

Check back for updates on this developing story.

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