A $5 million tax bill would boost the bottom line of big tech companies, but would also raise the cost of many consumers, according to a new study.
The study, authored by the Economic Policy Institute and the Tax Foundation, said that companies with the most technology-intensive businesses would benefit from the tax reform bill, while those that focus on software and cloud services would see their costs rise.
The tax bill also includes provisions that will provide an incentive for businesses to keep technology investments in the U.S. by providing tax breaks for investments overseas, the Tax Policy Center found.
The legislation also includes new tax breaks that are designed to reward companies that expand in the United States, the report said.
The bill would eliminate the Alternative Minimum Tax, the Alternative Treatment Tax and the Alternative Earnings Tax Credit, which is aimed at helping companies bring profits back to the United Sates, the study found.
The bill also would eliminate several tax credits that companies receive that help them attract foreign investment and create jobs, the tax report said, adding that it would also make it easier for companies to repatriate their foreign earnings.
The Tax Foundation said that the bill would also boost the tax burden of tech workers by giving tax breaks to companies that are using software to help customers.
The Tax Policy Institute estimated that this would result in a net benefit to the economy of $4 trillion to $5 trillion over 10 years.
The Senate tax bill is expected to be passed Thursday and sent to President Donald Trump for his signature.