How to Play the Inflation Bill
The Inflation Reduction Act is likely to pass … who are the losers? … a picks ‘n shovels EV winner … a green energy technology that will benefit The Inflation Reduction Act is on track to become a reality. On Sunday, the $430 billion bill passed the Senate along party lines by a 51-50 vote, with Vice President Kamala Harris casting the tie-breaker. It’s now headed to the House of Representatives, where it will be voted on most likely this Friday. Given that Democrats control the House, the bill is expected to pass, with President Biden signing it into law shortly thereafter. So, how will this affect your portfolio? Well, we see some great opportunities here. But first, there are some losers too. Losers of the Inflation Reduction Act Off the top, any large corporations that have been able to use accounting to sidestep or reduce their tax load will get dinged. That’s because the bill imposes a 15% minimum tax on companies earning at least $1 billion a year. As a few examples, if you own Nike, Salesforce.com, Archer Daniels Midland, or FedEx, this means your bottom-line earnings will be taking a hit.
How to Play the Inflation Bill
The Inflation Reduction Act is likely to pass … who are the losers? … a picks ‘n shovels EV winner … a green energy technology that will benefit The Inflation Reduction Act is on track to become a reality. On Sunday, the $430 billion bill passed the Senate along party lines by a 51-50 vote, with Vice President Kamala Harris casting the tie-breaker. It’s now headed to the House of Representatives, where it will be voted on most likely this Friday. Given that Democrats control the House, the bill is expected to pass, with President Biden signing it into law shortly thereafter. So, how will this affect your portfolio? Well, we see some great opportunities here. But first, there are some losers too. Losers of the Inflation Reduction Act Off the top, any large corporations that have been able to use accounting to sidestep or reduce their tax load will get dinged. That’s because the bill imposes a 15% minimum tax on companies earning at least $1 billion a year. As a few examples, if you own Nike, Salesforce.com, Archer Daniels Midland, or FedEx, this means your bottom-line earnings will be taking a hit.