In its latest cost analysis of the Inflation Reduction Act (IRA), the Joint Committee on Taxation (JCT) forecasts that the bill will reduce the federal deficit by $90.7 billion over 10 years. The JCT said three-quarters of the bill’s deficit-cutting impact ($68.3 billion) is expected to occur within five years of enactment, from 2022 through 2026. The bill’s 15% corporate alternative minimum tax on some highly profitable corporations will generate $222.2 billion in revenue over the 10-year period. Another provision, a 1% excise tax on companies’ stock buybacks, will generate $74 billion during that span, according to the JCT.
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