NFIB urges Congress to oppose any new taxes on small businesses, warns of endangering their fragile recovery
This week in the U.S. House, leading committees released and approved their specific plans to pay for trillions in new spending that Congress and the Administration are considering. This plan would impose severe tax increases and mandates on small businesses, endangering small business recovery in a time of labor and supply shortage.
“The more we learn about this proposal the worse it gets for small businesses,” said NFIB President Brad Close. “Congress wants to dramatically expand the size of government and fund it by crushing small businesses with massive tax increases. Small businesses and their employees are struggling to recover from the pandemic and government-imposed shutdowns and mandates, and Washington’s response is to take more of their hard-earned money.”
NFIB sent a letter to the House committees specifically opposing the following policies:
- Limiting the Small Business Deduction (IRS Section 199A)
- Raising the income tax rate on individually-owned and family-owned businesses from 37% to 39.6%
- Increasing the effective top capital gains from 23.8% to 28.8%
- Raising the top corporate tax rate from 21% to 26.5%
- Mandating small businesses with more than 5 employees to provide auto-enroll retirement plans
- Creating a new federal paid family and medical leave program
- Imposing a new 3.8% tax on active pass-through business income
- Ending Estate Tax Relief now instead of after 2025
- Enacting the Protecting the Right to Organize (PRO) Act and substantially increasing employment law penalties
Yesterday, NFIB hosted a webinar led by federal government relations team members Kevin Kuhlman, Courtney Titus Brooks, and Jeff Brabant who discussed in-detail these latest House proposals, what to expect from the U.S. Senate proposal, and answered small business owners’ questions.
“The retirement plan mandate would impact many small businesses, those with more than 5 employees, and the penalties are significant. We view it violates the President’s pledge to protect small businesses earning less than $400,000 from tax increases, and we continue to make that point,” said NFIB Vice President of Federal Government Relations Kevin Kuhlman
You can register free for the webinar and we’ll email you an on-demand replay to hear their discussion on these troubling measures.
Your U.S. Representative and U.S. Senators need to hear from you on how your small business would be impacted by these crushing changes. Even if your members of Congress have already voiced opposition to these tax hikes and mandates, they need to hear your stories to reinforce why their opposition is absolutely crucial. Our Take Action system makes it easy to customize your message when you tell Congress to protect small businesses from tax increases.