NFIB State Directors Warns of Federal Tax Increase on Small Businesses

May 2, 2023

Gregg Thompson and NFIB North Carolina Leadership Council member Claude Pope appeared on Spectrum News 1

NFIB State Directors Warns of Federal Tax Increase on Small Businesses

NFIB State Director Gregg Thompson and Leadership Council member Claude Pope were on “Capital Tonight” on Spectrum News 1 in Raleigh on Monday, May 1. They talked about the state of small businesses in the state in an interview timed to the start of National Small Business Week. Thompson said small business is the engine that drives North Carolina’s economy and warned that the proposed White House budget includes provisions that would hurt Main Street businesses trying to rebound from the pandemic and wrestling with a host of issues from inflation to a lack of workers. “The federal budget that was just introduced from the White House for 2024 has a 5% tax increase,” Thompson said. “They say it’s closing loopholes, but it’s not. It’s a tax increase on small businesses.” The Biden administration’s proposed budget includes $2.5 trillion in harmful tax increases that would crush Main Street’s ability to grow and create jobs. Some of these tax increases are again being wrongly characterized as the closing of a “tax loophole,” but they would directly affect small businesses and compound with other rate hikes. The budget proposes $2.5 trillion in tax increases including a reintroduction of Small Business Surtax on business income above $400,000, this time at 5% instead of the 3.8% proposal NFIB members defeated in 2022. Some claim that small business owners do not pay Medicare taxes, 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 new tax is based off the net investment income tax, which was deliberately only applied to investment income upon its creation in 2010. Click here to learn more and contact your members of Congress about this important issue!

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State:

North Carolina

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