Small business owners continue to speak out against tax hikes proposed in the White House budget
Tax Day brings to the forefront the constant battle small businesses face against tax increases, especially when Congress and the Administration wrongly characterize small businesses as taking advantage of a “tax loophole.” On April 18, NFIB presented the U.S. House Committee on Small Business with a petition signed by over 11,000 small business owners across the country to stop the tax hikes proposed in the White House’s Fiscal Year 2024 budget. NFIB’s “My Small Business is Not a Tax Loophole” campaign has given members a chance to speak out on the proposed tax increases through signing the petition, as well as radio interviews, digital ads, photos, and social media.
The campaign originally started in 2022 to fight a new tax, the Small Business Surtax, which was successfully removed from the Inflation Reduction Act of 2022. But now, the White House’s budget proposal contains $2.5 trillion in harmful tax hikes that would make it more difficult for small businesses to grow and create jobs.
“Main Street cannot afford these new tax increases,” said Brad Close, NFIB President. “As expectations for better business conditions remain low, while high inflation and worker shortages continue to plague Main Street, these proposals would hurt small businesses’ ability to recover, grow, and create jobs.”
There are claims that small business owners do not pay Medicare taxes and are taking advantage of a tax loophole. But all employers pay Medicare taxes in the form of payroll taxes on their employees’ wages and self-employment taxes on their own compensation. The proposed tax increases would directly hit small business income and compound with other rate hikes.
“The White House should instead focus on promoting economic growth by providing certainty, such as permanently extending the Small Business Deduction,” said Close. “NFIB encourages these members of Congress to stand up for Main Street and reject any new tax increases on small businesses.”
The proposed budget includes a reintroduction of the Small Business Surtax on business income above $400,000 at 5%, instead of the 3.8% proposal NFIB members previously defeated. NFIB’s Small Business Growth Agenda, which is a legislative agenda for the issues that warrant lawmakers’ consideration, addresses tax increases as a top priority. This continues to be a top concern for small business owners.
NFIB continues to fight against tax hikes and urges Congress to focus on policies that will provide certainty and promote economic growth. Take Action: Join NFIB and urge your legislators to oppose new taxes on small businesses.