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A third would restore a looser limit for writing off interest expenses. Beginning in 2022, businesses are limited to deductions for interest expenses of up to 30 percent of earnings before interest and taxes, and after depreciation and amortization costs are subtracted. That’s less beneficial than before 2022, when companies could write off interest expenses worth up to 30 percent of earnings before interest, taxes, depreciation and amortization.
Gig workers, car dealers
Several other tax provisions are likely to be included, according to sources who requested anonymity to discuss private conversations. Republicans are likely to include some relief from a new $600 threshold for tax reporting that applies to online sales and gig work on sites like Venmo, eBay, Etsy, Uber and Airbnb.
Another potential piece is some form of retaliation against countries that tax U.S.-based global companies because the U.S. hasn’t put in place a 15 percent minimum tax on multinational firms’ earnings.
The Biden administration negotiated a pact for the minimum tax that includes a rule allowing countries to impose extra tax on foreign companies as punishment for not adopting the deal. But Congress never implemented the agreement, dropping legislative provisions in the final bargaining over last year’s budget reconciliation package.
Car dealerships that saw bigger tax bills due to global microchip shortages amid the COVID-19 pandemic could also get a boost, and tax credits that incentivize real estate developers to build more affordable housing have come up in discussions.
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