US tax reform president Grover Norquist is pushing back on Treasury Secretary Janet Yellen’s “bizarre” argument to raise tax rates on corporate and capital gains.
The largest small business advocacy group in the US has launched a “survival campaign” against President Biden’s new tax policy.
The National Federation of Independent Business cites concerns about the president’s proposed US $ 2.3 trillion employment plan and the US $ 1.8 trillion family plan, which will be paid for through a series of tax increases affecting millions of US homes and small businesses.
“Small businesses have been hit by the pandemic and government-imposed shutdowns. They have spent the last year helping their employees keep their doors open and ready to hire and grow. But just as the small business rebound Washington plans to hit small businesses with massive tax hikes and new mandates, “said Brad Close, president and CEO of NFIB, in a statement.
WHAT’S IN BIDEN’S NEWEST $ 1.8T TAX AND SPENDING PLAN?
He added that small businesses are struggling to find workers to fill vacancies, despite COVID-19 restrictions easing and “rapidly rising prices” expected.
“With a record high of 44% of small businesses unable to fill vacancies, it is incredible that Washington’s answer is to raise their taxes and create more regulations,” he said.
A person wearing a protective mask walks past a sign posted outside a shop in Harlem. Photo by Noam Galai / Getty Images)
For example, the American employment plan would raise the corporate tax rate from 21% to 28%, which would reverse a significant portion of the 2017 Republican Tax Act and impose a higher global minimum on corporate foreign income. The family plan would nearly double the investment income tax rate for households with incomes greater than $ 1 million, from 20% to 39.6%, and increase the highest individual income tax rate from 37% to 39.6%.
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The COVID-19 pandemic forced the final shutdown of an estimated 100,000 small businesses from August, according to Yelps’ local economic impact report released in September 2020, although experts point to a significant recovery in the next few years. Other US corporate giants like Amazon have overthrown the competition.
The coalition’s campaign will include targeted traditional and digital ads, media initiatives, research, grassroots work, lobbying and other efforts to hold members of Congress accountable for their support for tax increases and how they would harm small business owners. This will make it clear why tax increases would be detrimental to small businesses while members of Congress would be held accountable for their support for tax increases and mandates.
The NFIB found that former President Tump’s 2017 Tax Cuts and Jobs Act had a positive impact on the majority of small business owners. 54% said the tax law had a positive impact on businesses, according to the NFIB tax survey.
One in four small business owners said they saw tax savings as a result of the 2017 policy to increase workers’ compensation, and 16% said they were motivated to hire more people.
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The campaign comes less than a week after America First Legal, a conservative rights group founded by former Trump adviser Stephen Miller, filed a lawsuit against the Biden administration over COVID-19 small business relief in the it was alleged that the funds were illegally distributed due to racially discriminatory practices practices methods exercises. The lawsuit alleges that the Small Business Administration (SBA) guidelines for “priority” groups seeking help wrongly exclude “entire classes of Americans” because of their race.
The SBA funding was approved by President Biden’s US $ 1.9 trillion bailout and included a mandate that gave companies owned by women and ethnic minorities a 21-day “window of priority”.
Fox Business’s Evie Fordham and Megan Henney contributed to this report.