Just days after taking over Twitter, Elon Musk has fired a warning shot at the Democrats by flagging false claims about inflation in a post from President Joe Biden.
The Democrats have been leaning on social media companies over the flow of information for some time.
However, Biden never thought he would be the one on the other end of the Big Tech “fact checkers,” which have always been used as tools to target conservatives.
Biden, or someone on his staff, tweeted: “Let me give you the facts.
“In 2020, 55 corporations made $40 billion.
“And they paid zero in federal taxes.
“My Inflation Reduction Act puts an end to this.”
Let me give you the facts.
In 2020, 55 corporations made $40 billion. And they paid zero in federal taxes.
My Inflation Reduction Act puts an end to this.
— President Biden (@POTUS) October 29, 2022
Enter Musk’s non-woke Twitter:
“The Inflation Reduction Act imposed a minimum tax on corporations with average pre-tax earnings greater than $1 billion,” Twitter’s fact check label said.
“Out of the 55 corporations the tweet references, only 14 had earnings greater than $1 billion and would be eligible under Biden’s tax law.”
The correction from Twitter was welcomed by many.
“Elon buys Twitter and now they’re fact-checking liberals,” Army Ranger and former U.S. Senate candidate Sean Parnell (R-PA) joked.
“Finally. I love it.”
Some regular corporate income tax credits and deductions are still allowed under the minimum tax, including credits for foreign taxes paid.
The carrying forward of prior-year losses to offset future income is also permitted, but only 80% can be applied to reducing taxable income.
Credits for research and development expenses are also allowed, with 75% of the value applied to reducing corporate minimum tax.
At the urging of Democratic Senator Kyrsten Sinema, lawmakers added a provision to preserve deductions on capital investments such as machinery, vehicles and buildings. The exception would allow companies to more quickly offset these expenses against tax bills.
Under another last-minute change to the legislation urged by Sinema, companies controlled by private equity firms are not subject to the corporate minimum tax if they make less than $1 billion of book income, even if that investment firm’s combined portfolio of companies exceeds the threshold.
Some private equity firms may be able to shift assets among companies in their portfolios so that each earns less than the $1 billion threshold to avoid the minimum tax.
Book income is calculated based on the income companies report to shareholders, and the new tax may give companies an incentive to lower the book income they report, law firm Baker Hostetler said in a recent note.
They pointed to a nonpartisan Congressional Research Service report showing evidence of how past efforts to levy taxes based on book income compelled corporate taxpayers to manage their earnings and adjust book income to reduce taxes.
Here’s a fact, Jack: your “inflation reduction act” won’t reduce inflation, you WEF tool. pic.twitter.com/zaqXR30nTf
— Viva Frei (@thevivafrei) October 29, 2022