WASHINGTON, D.C. (June 25, 2026) – Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, testified before the U.S. Senate Committee on Finance at a subcommittee hearing titled, “The Future of Social Security.” Milito spoke on various proposals in Congress that would impose massive new tax hikes on small businesses and stifle America’s small business economy.

Milito testified:

“Proposals such as the Social Security Expansion Act are often framed as affecting only ‘millionaires and billionaires,’ but small businesses are not out of harm’s way from these deceptively labeled proposals.”

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“Small businesses often report on the owner’s individual tax return because 85% of small businesses are pass-through entities, such as S-Corps, sole proprietorships, and partnerships. These businesses would be subject to additional Social Security taxes under the proposal. Profits exceeding $250,000—often reinvested into payroll, equipment, or expansion—would face a new 12.4% tax, even if owners do not withdraw that income personally. For these businesses, proposals like the Social Security Expansion Act represent not just a tax increase on the wealthy, but on the revenue that small business owners depend on to operate, grow, and expand their businesses.”

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“Small businesses continue to face economic challenges. Congress can help mitigate these challenges by extending beneficial small-business tax provisions and rejecting a $33.8 trillion tax hike. Tax certainty will help businesses plan and increase small business confidence. It is my hope that Congress will pursue reforms that promote economic growth, encourage workforce participation, and protect small businesses owners’ ability to invest and create new jobs. A stronger economy ultimately produces more payroll tax revenue and will improve Social Security’s long-term outlook without imposing new burdens on Main Street employers.”

Read Milito’s full testimony here. Watch her opening remarks here.

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.