Estimating the Minimum Tax on Book Income Liability using Public Data

Jeffrey L. Hoopes*
University of North Carolina at Chapel Hill
hoopes@unc.edu

Christian Kindt
University of North Carolina at Chapel Hill
christian_kindt@kenan-flagler.unc.edu

We use public data to estimate firm-specific estimates of the minimum tax on book income included in the Inflation Reduction Act. We take into account all major adjustments to financial statement income included in the law, using what we consider the best available public data. Our estimates suggest that just under 80 firms would have been subject to the tax and the tax would have raised approximately $32 billion had the minimum tax applied to 2021.

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