What Small Business Needs To Know About The White House's "Infrastructure" Spending Plans

Date: April 15, 2021

During this fragile economic recovery, Main Street needs protection from tax hikes that would take away from crucial wages and benefits, and affordable customer pricing in favor of higher tax payments to the government. Small businesses are always at a disadvantage when it comes to weathering massive government mandates, and that is especially true now with Congress and the White House considering small business tax increases to pay for the Administration’s agenda.

In response to the Administration’s preliminary tax and spending proposals, NFIB President Brad Close urged Congress and the White House not to harm small business job creators:

Any plan by President Biden and Congress must take into account the crucial role Main Street plays in job creation and economic growth. America’s small businesses are the third largest economy in the world, and they have been severely harmed by the pandemic and government shutdowns. We will remain steadfast in opposing any tax hikes that could hurt the efforts of small businesses to keep their doors open and their employees on payroll.”

– Brad Close, President NFIB

What’s been proposed:

The Administration’s American Jobs Plan – over $2 trillion in spending – would affect small businesses in two significant ways:

  • A Big Labor threat. In the American Jobs Plan, President Biden calls on “Congress to ensure all workers have a free and fair choice to join a union by passing the Protecting the Right to Organize (PRO) Act, and guarantee union and bargaining rights for public service workers.” This legislation has been rejected by the courts and opposed by Congress for decades. You can click here to ask your members of Congress to stop the harmful PRO Act.
What’s upcoming:

In the next couple weeks, the Administration is expected to propose an additional layer of “human infrastructure” spending, reported to address “domestic priorities, such as universal prekindergarten, national childcare, and free community college tuition.” This proposal is expected to be funded by additional tax increases on small businesses and individuals, including:

  • Broader reach for the Death Tax. NFIB is working to stop the Death Tax, while the Administration’s agenda is expected to expand the tax. For small business owners, the Death Tax can mean that once they pass away, their business may be severely impacted or even forced to close. You can help in the fight to repeal the Death Tax here.
  • And more. This second wave of the President’s infrastructure spending plan is also expected to raise the income tax rate on individuals earning more than $400,000 and increase the capital-gains tax rate for certain individuals.

Next, Congress will begin crafting legislation to align with the Administration’s proposal and may expand it further. NFIB will continue to monitor and fight for the interests of NFIB members, and you can help. We’re working to educate Congress on how the Small Business Deduction has helped your business survive. How would a tax increase impact your business, employees or community? Submit your story here.

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