Buffett’s Berkshire Hathaway is likely the first taxpayer under Biden’s tax law

  • Buffett’s Berkshire Hathaway tops a list of companies that would pay the most under a new tax law.
  • The 15% minimum corporate tax means Berkshire Hathaway would have paid $8.3 billion last year.
  • Amazon, Ford and Ebay are among the other companies that should pay the most taxes, according to a study.

Warren Buffett’s Berkshire Hathaway could be one of the biggest payers of President Joe Biden’s new corporate tax law, according to a new study.

The research, conducted by the University of North Carolina Tax Center, used historical securities records to establish what companies would have paid had the tax gone into effect last year. He found that about 78 companies would be subject to the tax, which in total would have raised about $31.8 billion.

According to the study, billionaire investor Buffett’s company would have spat the most in 2021, estimated at $8.3 billion, while Amazon lags behind, ahead of $2.7 billion, based on corporate profits last year.

In August, Biden signed into law a minimum accounting income tax under the Inflation Reduction Act. This applies a minimum corporate tax of 15% intended for companies that earn more than $1 billion per year.

Earlier in January, Berkshire Hathaway reached a market capitalization of $700 billion, but the realization stalled ahead of the celebration as Buffett struggles to find stocks or companies at attractive prices. This month alone, the famed investor’s company made a $2 billion mistake by selling shares of Occidental Petroleum in 2020 only to return 18 months later.

The misstep comes as the Federal Reserve’s aggressive monetary policy in an effort to stave off high inflation hits US stocks. That caused major U.S. indexes to sell off sharply, with the S&P 500 sliding into bearish territory in June and the Dow Jones Industrial Average hitting its year-end low on Friday.

Other top payers of Biden’s new tax law include Ford, AT&T and eBay, based on 2021 revenue.

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