Tax & Accounting News

TaxBuzz Chat: The Inflation Reduction Act and More - Tax Policy Debate

TaxBuzz Chat: The Inflation Reduction Act and More - Tax Policy Debate

It’s that time again, #TaxTwitter. As hard as it may be to believe that July has passed, the August #TaxBuzzChat arrived and was busy as ever. In this month’s chat – hosted on our Twitter account @TaxBuzzOnline – we invited pros across the country to join us to discuss their thoughts on the Inflation Reduction Act and More. 

Some of our key takeaways from the conversation included: 

The Inflation Reduction Act claims that it will not affect families with income of $400,000 or less. Opponents argue that is not true. When we asked #TaxTwitter pros who they think are correct, @PKubeyEA said, “As with many tax-related questions, the answer is: It depends. Gross income? Adjusted gross income? Modified Adjusted Gross income? Taxable income?”

When it comes to the inflation act and whether it will reduce, be neutral or increase inflation, many pros had differing thoughts. “I don't think it will have a ton of impact.  Eventually the economy will correct itself. It is just a matter of when.” - @fintaxdude. On another note, @r3cpa said, “I don’t know that it’s going to do much to drop #inflation in the short term, but I think it will do something for the country’s long term inflation. Only time will tell.”

How will the carried interest change their clients' planning strategies? “It won't affect the majority of my clients. I'm going to do a lot more CE and study this issue for the 1 or 2 clients that may be affected. Biggest issue I see so far is extending the holding period for RE managers / investors.” - @korlando2251

Do #TaxTwitter pros think that the government should be offering tax credits for EV and clean air vehicles? And if yes, should these credits apply to foreign made EVs as well? @RobergTax says, “I've had a number of clients choose EVs for the tax credit so I think it does work. As a driver of a foreign car let me just say - there are more American parts in my car than in a lot of "American" cars you see on the road.”

Many #TaxTwitter pros plan to send their clients a newsletter with all of the potential energy tax credits. “Once final, we will probably include info in our newsletter and possibly a blog post on our website to be shared across social media!” - @AthleteCPA

Will the introduction of the large corporation minimum tax of 15% cause any economic ripples? @wealthandlaw thinks it depends. “I think it depends on how successful countries are collectively in implementing the OECD minimum tax broadly. If there’s nowhere to go then I think you’ll see less major moves to avoid it.”

We asked our tax pros what they would change if they were to rewrite the tax code. @PKubeyEA said, “SIMPLIFY! Or at least adjust the many fixed $ provisions/enact ongoing inflation adjustments going forward. $25000/$32000 SSA thresholds, 14 cents per mile charitable mileage, $25 business gift, $250K/$500K sale of principal residence exclusion, etc.”

Click on any of the embedded tweets to see the full set of responses on Twitter.

Q1. The proponents of the Inflation Reduction Act claim that it will not affect families with income of $400,000 or less. Opponents argue that is not true? Who is correct? #TaxBuzzChat pic.twitter.com/lMPxvWXdw4

Q2. Do you think it was intentional or a typical congressional oversight that the legislation’s acronym ended up being the IRA Act? #TaxBuzzChat pic.twitter.com/5Xf0tb89vQ

Q3. Do you think the Inflation Reduction Act will reduce, be neutral or increase inflation? #TaxBuzzChat pic.twitter.com/VSP0TTUb3B

Q4. Will the increase in IRS tax enforcement (more than $45 billion) affect your practice with increased workloads and client audits? #TaxBuzzChat pic.twitter.com/6xnanNF4LF

Q5. How will the carried interest change your client planning strategies? #TaxBuzzChat pic.twitter.com/gZhbXhVYly

Q6. Do you think the government should be offering tax credits for EV and clean air vehicles? And if yes, should these credits be applied to foreign made EVs as well? #TaxBuzzChat pic.twitter.com/wB6Ub56KhE

Q7. Will providing credit for used EVs increase the value of used EVs and will that help bring down inflation? With credit restricted to low-income individuals, will they even be able to afford a used EV? <ahref="https://twitter.com/hashtag/TaxBuzzChat?src=hash&ref_src=twsrc%5Etfw">#TaxBuzzChat pic.twitter.com/8cdMwLGXFB

Q8. The credit for energy efficient home modifications (Sec 25C) has been around since 2006. The lifetime max has been as much as $1,500. How many of your clients will have those past records needed to claim the new 30% version with a lifetime cap of only $1,200? #TaxBuzzChat pic.twitter.com/GKtzRbOx1q

Q9. Will you send your clients a newsletter with all of the potential energy tax credits? #TaxBuzzChat pic.twitter.com/JrclPJxJqm

Q10. What do you think of the revised Billionaire tax proposals and possible issues with enforcement and investment? #TaxBuzzChat pic.twitter.com/mqdbRfdGcE

Q11. Will the introduction of the large corporation minimum tax of 15% cause any economic ripples?#TaxBuzzChat pic.twitter.com/EcrzWPv1hZ

Q12. If you were writing the tax code, what would you change now and why? #TaxBuzzChat pic.twitter.com/4x11F6b2pL

— TaxBuzz.com (@taxbuzzonline) August 3, 2022

Thank you to all the members of the #TaxTwitter community who participated in our August chat – and welcome to all our new attendees. Make sure to check out the full recap below for top highlights of our conversation and sign up to receive our chat invites and recaps via email here.

@TaxBuzzOnline will be hosting our next #TaxBuzzChat on Wednesday, September 7th at 10am PT/ 1pm ET. Check back for updates to make sure you don't miss out on the conversation and Tweet us if there are topics that you'd like to chat about in the future.

share this post
Search for matches...
TaxBuzz Staff

TaxBuzz Staff

Our experts cover the hot topics in tax, personal finance and business planning. Follow us on @taxbuzzonline to get the latest updates year round.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts