New NFIB Video: My Small Business is Not a Tax Loophole

July 19, 2022

New NFIB Video: My Small Business is Not a Tax Loophole

WASHINGTON, D.C. (July 19, 2022) – The National Federation of Independent Business (NFIB) released a new video today highlighting small business owners’ concerns about a new tax on small businesses that has been wrongly characterized as a closing of a tax loophole. The new tax is on small businesses, which legislators wrongly claim will “close a tax loophole to fund Medicare.” However, the tax isn’t a loophole and small businesses already pay for Medicare through payroll taxes and self-employment taxes. The video features small business owners Laura Lucia of New York, Neil Abramson of Massachusetts, Eddie Wetherill of North Carolina, Kellie Loudin of Ohio, and Loren King of Indiana. They each expressed concern about the new tax and the impact it will have on their business:

“The 3.8% tax would be devastating to small businesses. At this point in time, it would be disastrous,” said Lucia.
“There is this myth that businesses run on big profit margins – profit is extremely small. Businesses run to serve their communities. They’re the ones on your baseball fields, they’re the ones putting their names on the back of sports teams, they are donating to every event and cause in your town. They run on pennies…a one or two percent profit margin. A nearly 4% tax would be devastating to small businesses like ours and so many others,” said Abramson.
“…with 3.8% coming out of our bottom line, it’s going to take us years to get it done,” said Wetherill.
“We usually give our bonuses around Thanksgiving…if we knew we had to pay that surtax, we would have to pull back on those bonuses,” said Loudin.
“We would significantly feel the 3.8% tax increase in an environment where it is harder and harder to even make a profit,” said King.

Watch the full video here. NFIB recently launched a paid advertising campaign in West Virginia and Arizona to encourage Sens. Sinema, Kelly, and Manchin to stand against the new proposed tax increase and any tax increases on small businesses.

Topics:

Taxes

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