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Business taxes rising just as US economy heads into choppy water
Hard to get inflation down without a recession: Furman
Harvard economist Jason Furman shares his economic outlook for 2023, focusing on recession fears, the Federal Reserve’s agenda and geopolitical factors.
A number of business taxes are rising just as the U.S. economy faces the increased risk of a recession, threatening to prolong financial pain for many companies and consumers.
Beginning this year, businesses will face a steeper federal tax burden thanks to several major changes included in the health care and climate change spending bill that Democrats passed over the summer. On top of that, key provisions of the 2017 Republican tax overhaul are set to phase out this year.
Combined, the tax increases are projected to cost businesses about $115 billion this year – a big increase from years' past, according to the Joint Committee on Taxation.
"On the impact of tax increases in a recessionary period, we are highly concerned," Chris Netram, the managing vice president of tax and domestic economic policy at the National Association of Manufacturers (NAM), told FOX Business. "Some of the items that have already taken effect, that Congress failed to reverse at the end of last year, are causing a lot of pain for our members."
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