Small Business Wins Fight to Stop New 3.8% Tax

Date: August 17, 2022

In a nationwide ad campaign, small business owners successfully urged Congress not to add a 3.8% tax on struggling Main Street

Despite being mischaracterized as “tax loopholes” by some members of Congress and already battling challenges like record-high inflation, small business owners across the nation spoke out over the last several weeks and successfully stopped a new 3.8% tax that would impact many small businesses.

FOX Business wrote about the campaign, highlighting NFIB’s national paid advertising effort featuring ads in key states promoting America’s small businesses as the “backbone” of our economy. The campaign urged members of Congress to vote against any new taxes on small businesses. NFIB members saw a victory in this effort as the final Inflation Reduction Act of 2022 does not include the new 3.8% tax, which was included in the House-passed spending bill and proposed by Senators Schumer and Manchin before they ultimately dropped the provision. NFIB will continue to monitor upcoming bill proposals because the tax proposal may return in future years. 

FOX Business wrote a story ahead of the release of the first ads, highlighting the negative impact the new tax would have had on small businesses across the country. NFIB members spoke out by writing their members of Congress, explaining the harmful effects of a new tax, and participating in a social media campaign to emphasize that their small businesses are not a tax loophole.

“Small businesses are the backbone of our economy,” said NFIB President Brad Close. “Small businesses weathered the pandemic and government shutdowns, but now, some members of Congress are supporting new taxes on small businesses to pay for increased government spending, while misleadingly characterizing them as ‘tax loopholes.’ Congress should focus on supporting Main Street and reject any new taxes on small business.”

Learn more and stay up to date with the most current information regarding this tax in future legislation. With small business owners standing together, this tax will continue to be removed from any future legislation where it is proposed.

Take action: Send a message to thank your legislators for standing up for small business or hold your senators accountable for their votes against pro-small business policies.


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