Business Insider – 1.5 million tech companies are expected to pay more in taxes this year than the federal government is projected to collect, according to an analysis of government data released Friday.
According to the Economic Policy Institute’s Taxes in the 21st Century project, about 1.4 million tech firms will get a $200 billion tax credit that will allow them to deduct up to $2,000 in business expenses.
That would raise revenue to the tune of $11.5 trillion.
The government expects to collect $1.6 trillion in revenue from the tax credits, and the tech industry is projected by the White House to generate $2.4 trillion in taxes, according a report by the Tax Foundation.
The Tax Policy Center estimates that the tax credit will increase revenues by $5 trillion and reduce deficits by $3.5 billion over the next 10 years.
Tech companies are already being hit hard by a wave of job cuts and the expiration of the corporate tax holiday, which ended in 2018.
The bill would extend the credit to those companies that make at least $200 million in revenues and that hire 10 or more full-time employees.
The bill would also extend the tax holiday to all companies that are 50 or more percent owned by a single family or LLC.
It would also give tax credits for up to four years for companies that hire 20 or more employees.
This article is based on a report from Business Insider.