Overview
Law360 quoted George Callas in a February 26 article titled "Delaying US Corporate Tax Hikes Won't Put Off Their Bite." The article discusses how the Biden administration hopes to phase in planned tax hikes to pay for infrastructure improvements while minimizing harm to the recovery from the coronavirus pandemic. Experts, however, say most economic effects of corporate tax changes will be impossible to delay. Companies must incorporate anticipated tax changes into their financial reporting immediately, and for those that are publicly traded, their stock prices will react as soon as the news is out.
Callas says: "A short delay in a tax rate increase won't do much to alleviate the disincentive to invest today. This is especially true in industries with long investment horizons like pharmaceuticals and aerospace."
The full article can be read at Law360 (subscription required).