May 18, 2024 2:10 pm
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National News

The Inflation Reduction Act’s Impact on Tax Reform


Last week, Congress passed the Inflation Reduction Act (IRA) which creates new tax reforms primarily affecting corporations. The IRA will not add any new taxes for small businesses or families making less than $400,000/year. Instead the legislation creates a new 15% minimum tax for corporations making more than $1 billion in profit. This reform is estimated to bring in about $258 billion dollars within the next decade which will be put back into governmental programs. 

Senator Krysten Sinema (D-AZ) pushed back against other Democrats attempts to reduce the carried interest loophole which allows investment managers to identify their compensation as capital gains rather than income which significantly reduces their tax rate. To compromise, Sinema and other Democrats agreed upon a 1% excise tax on stock buybacks which will bring in about $14 billion in the next decade after it goes into effect in 2023. 

To help enforce these tax reforms and current workload, the Internal Revenue Service will get additional funding to help add more employees and management. This addition will increase tax revenue by $124 billion in the next 10 years. 

Georgia takes aim at mental health care shortages with new legislation

Georgia is intensifying efforts to tackle its mental health care challenges with new legislation designed to increase the availability of mental health professionals across the state. Representative Sharon Cooper emphasizes the state’s commitment to equalizing access to mental health services, particularly in rural areas, by offering loan repayment incentives to providers working in underserved regions.

Kemp signs bill into law forcing sheriffs to enforce federal immigration law

Gov. Brian Kemp of Georgia signed a contentious new law on May 1, 2024, mandating that law enforcement agencies notify federal authorities about the arrest of undocumented immigrants, with penalties including loss of state funding and criminal charges for non-compliance. Critics argue the law targets Georgia’s Hispanic community disproportionately and contrasts sharply with previous state efforts towards criminal justice reform.