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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following is a reconciliation of income taxes at the statutory rate of 21% to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions):
Three months ended March 31,
20242023
Amount% of EBTAmount% of EBT
Earnings before income taxes (“EBT”)
$304 $264 
Income taxes at statutory rate$64 21 %$55 21 %
Effect of:
Employee stock ownership plan dividend paid deduction(2)(1 %)(3)(1 %)
Stock-based compensation(2)(1 %)(2)(1 %)
Tax exempt interest(1)— %(1)— %
Dividends received deduction— — %(1)— %
Nondeductible expenses
2 1 %3 1 %
Foreign operations— — %2 1 %
Other1 — %(1)(1 %)
Provision for income taxes as shown in the statement of earnings
$62 20 %$52 20 %

On January 1, 2023, the two major tax provisions in the Inflation Reduction Act (“IRA”) became effective. The IRA created a new corporate alternative minimum tax (“CAMT”) based on the earnings that a company reports in its financial statements and imposes a 1% excise tax on corporate stock repurchases. Any CAMT incurred would be available to offset taxes payable under the standard calculation in future periods. Accordingly, the CAMT is a timing difference and would result in the recording of an offsetting deferred tax asset with no impact on overall income tax expense. Based on current guidance, while AFG meets the financial statement income thresholds to be subject to CAMT, management does not believe AFG will incur a CAMT liability for 2024. The excise tax on stock repurchases in excess of any issuances is recorded as part of the cost of the repurchases directly in shareholders’ equity.
The Organisation for Economic Co-operation and Development, an intergovernmental organization with 38 member countries, has proposed a global minimum corporate tax rate of 15% (“Pillar Two”). Due to AFG’s limited international operations and the tax rate AFG is subject to in those jurisdictions, management does not believe Pillar Two will have a material impact on AFG’s results of operations.