Silver State Times

This month, following an agreement between Senate Majority Leader Chuck Schumer and Joe Manchin, Democrats are advancing a bill that would close several tax loopholes for large businesses, The Wall Street Journal reported.

While Democrats claim that this is necessary to level the playing field, Republicans are pushing back and asserting that it will restrict business heavily and remove incentives for major manufacturers to do business in the U.S. 

Manufacturers around the country are struggling with higher costs and the negative impacts of inflation and supply-chain disruption. The removal of tax incentives could worsen the situation. 

In an analysis conducted by the nonpartisan Joint Committee on Taxation (JCT), it was revealed that almost half of the $313 billion book minimum increase would be shouldered by manufacturers. This is sure to concern manufacturers in Nevada, who will be impacted by the bill, according to a press release.

“The JCT confirmed what we have been saying for over a year: This fundamentally flawed proposal, which has not been properly vetted by either Congressional tax-writing committee, risks severely harming American manufacturers, exacerbating supply-chain disruptions and ultimately costing U.S. jobs and investment. This is a domestic manufacturing tax, plain and simple,” Mike Crapo, Republican ranking member for the Senate Finance Committee, said. “Now is not the time to resurrect a harmful policy that would overwhelmingly hit American manufacturers and supply chains, as well as undercut critical research and development and investment in emerging technologies.”

If the bill is signed into law, it will place a 15% minimum tax on corporations, raise the tax bills of companies until they reach the proper minimum rate and affect approximately 150 companies. 

Democrats have stated that the intention of the bill is to close tax loopholes, a press release reported.

The top manufacturing companies in Nevada that will likely be affected by the tax-and-spend bill are Tesla, Inc., International Game Technology, Barrick Goldstrike Mines, Inc., Scientific Games Corporation and Cortez Gold Mines, according to Industry Select. The top manufacturers are primarily located in Las Vegas, Reno, Sparks and North Las Vegas.