White House’s 2024 Budget Proposes $2.5 Trillion in Tax Increases
Updated March 23, 2023
With surging inflation, high gas prices, and workforce shortages, small businesses have suffered enough. Despite being wrongly called “tax loopholes” by some members of Congress, NFIB members successfully fought the Small Business Surtax throughout 2022. Due to their advocacy, it was ultimately removed from the Inflation Reduction Act of 2022.
- But now, the White House’s 2024 budget proposal contains $2.5 trillion in harmful tax hikes 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” and would directly hit small businesses and compound with other rate hikes.
- This 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.
NFIB released a Small Business Growth Agenda for the 118th Congress, which includes specific pro-small business policy positions that warrant lawmakers’ consideration during this two-year session of Congress, this includes continuing to fight the White House’s proposed tax increases.
Congress and the Administration should focus on policies that will provide certainty and promote economic growth to allow small businesses to create jobs and raise wages. NFIB will continue to advocate against tax hikes via our “My Small Business Is Not A Tax Loophole” campaign. Join NFIB by telling your legislators the extent of the tax burden your business is already facing.