Family-owned small businesses would be hit hard by President Biden’s “small business surtax,” according to a recent letter by the National Federation of Independent Business, the leading trade association of American small businesses.
As NFIB writes:
“NFIB opposes efforts to raise taxes on small businesses. The Build Back Better Act broadens existing passive income taxes and applies them to active income, creating a true ‘Small Business Surtax.’
“Specifically, the legislation substantially expands the 3.8% net investment income tax (NIIT) on pass-through business income and applies it to all business income above $400,000 (individual filers) and $500,000 (joint filers). The threshold is even lower for family businesses held as trusts, with the surtax applying to income above $13,000. These thresholds are not indexed for inflation, so the ‘Small Business Surtax’ will impact an increasing number of businesses and an increasing percentage of business income every year.”
Key Takeaways:
- Three-quarters of small employers are organized as pass-through entities (S corporations, LLCs, sole proprietorships, and partnerships).
- Biden’s “Small Business Surtax” would negatively impact more than 750,000 pass-through businesses and over half of pass-through business income.
- When combined with the other surtaxes on certain pass-through businesses, Democrats’ tax changes create a 48.8% federal effective tax rate on pass-through business income before even considering state and local taxes.
Small business owners say that federal income taxes are the most burdensome tax they face. Worse, the permanent tax increases are used to pay for temporary spending programs, meaning additional tax hikes will be necessary if the spending programs are extended.
Biden is a union lover and hates small family owned businesses (and basically all non union businesses and what else did you expect from such a compromised crook like Biden? How else do these politicians drive hundred thousand dollar cars and live in multi million dollar homes everywhere? Paid off hack
I’m sure the Biden administration considers the potential anti-competitiveness or even possible bankrupting of a good percentage of small businesses an acceptable trade-off for advancement of the socialist agenda in this country. The ends justify the means after all. It’s called acceptable collateral damage by a lot of folks I used to know in the federal government.
No doubt some government hack or should I say spokes person in the Biden administration will say a sound bite similar to this when asked about this subject:
“Small business owners should just stop complaining. If they don’t like the new rules and taxes, then they should just close their businesses, fire their employees and take a good union job somewhere else instead. Who needs innovation, competition and climbing the latter of success, when you can settle for a nice, safe, dead-end union job where the union dues flow the Democrat Party every single pay period. Who said you’re entitled to be a better life for yourself and your family. Just settle for a good union job and STFU.” The media will defend the idiot government bureaucrat saying this nonsense and claim anyone who disagrees with the sentiment is a racist. SOP for how the Biden administration handles just about everything they don’t want to have to justify.
The rest of the country needs to wake up and smell the disaster about to befall us. Heck, it has been looming for quite some time, but Biden, Harris, and their comrades will advance—are advancing—the socialist cause at warp speed.
When will those who blindly vote for dem candidates discover that the dems want absolute power to make every decision for us and are not in power to “help us”? Most of us here understand that the more power they have, the fewer freedoms we have. When businesses and individuals are overtaxed, less disposable income remains to devote to our own purposes—charitable donations, churches, private school or tutors, vacations, home ownership, causes we believe in, opening or expanding a business, paying our employees better salaries, less debt, saving for retirement…
…what we drive, what we eat, what we learn in school, what we can say in a public space, what we can use to defend ourselves, how we heat our homes, what I can and cannot do with that drainage ditch in the back yard (true! Obama’s waters act would have done such a thing to my small business).
Heaping onerous regulations and a greater tax burden on small business is one way for this country to descend into a dictatorial state where the good old days, by comparison, really were just that. Let’s not make it just a fond memory; “the good old days” were a way of life every American should fight for. We have some crucial elections coming up within the next few years; please vote for freedom.
Patriots, When will the American people rise up to combat this evil ???
Pray that God will send us courageous leadership to follow.
this whole Administration is Godless Communists.
Look at what you voting Democrats have unleashed on our beloved country.
You have my undying hatred !!!
And now Beto wants to be Governor of Texas. The rats in this Administration keep emerging.
We need a complete purge of these demons.
Dem voters tend towards government jobs and have sacrosanct pensions. Small businesses tend to be run by conservatives. The underclass despises business because, as their spokesman famously said, ‘ you didnt build that’. A high percentage of dems believe the only real problem businesses face is counting their money after it rained from the sky. Therefore this is a quite safe gambit for the administration
Our reigning administration has one goal, to destroy our country as we know it. Sadly, that is the ONE thing they’re doing quite well!!! I pray God will bring us through this mess reasonably unscathed.
I wonder which type of business the Biden crime family empire fits into?
Why more tax ? The debt (?) will NEVER be paid. You tell me how.
HALF of these BS depts in DC need to be abolished. DOE, the other DOE,
ALL foreign aid, Nat’l endowment of the pharts, and many, many more. It
ain’t gonna hap.
What the hell, if his build-back better passes I expect to see income tax on people making $10,000 a year.
Ah yes…..Are people finally beginning to understand when Conservatives say the old democrats are the party of Tax & Spend it’s for a reason?
Study their History!
Democrats have been Communists for many decades. The way you trash a Capitalist economy to make it become a Communist one is to tax, tax, tax, and TAX some more. It is the only way they can fund all their “Free” stuff to talk fools into accepting Communism.
More marxist democrat failure.
Time for America’s Citizens to throw them ALL out!!!
This self serving,anti American ” Washington swamp” has NOT honored their oath or done their job!
Bye – bye LOSERS
Biden and his band of outlaws are out to destroy America. This is just one more bit of proof. We need a recall asap.
This is only the beginning. If we allow this to continue a full takeover is next
Democrats/AKA as Dixiecrats have since Emancipation Proclamation duped the poorest & now richest… (Bezos-Gates-Buffet and long list) Today as Marxist Communists they destroy our Republic. Sadly at the hands of millenials that surpass babyboomers as largest generation. Until media is corrected and held accountable we are doomed. You just can not fight propoganda that brainwashes any supporter of current democrat and fool as commander.
I hope that the Democrats finally anger the American public to rise up and vote these people out of office. They stole the presidential election. We must make certain they do not steal more elections. The oligarchs control the media. That is why we read AMAC and other reliable news organizations like The Epoch Times. There will always be about 30% of the public who will always back the Democrats. That is why they want open borders. Flood the nation with immigrants and tax all productive citizens with onerous taxes to pay for the upkeep of those who will not work. The 70% of us who are not hard core radical communists need to dump every democratic officeholder and purge the evil.
No BBB!
Clear COMMUNISM will put.small busines out.business. Passive income.is.NOT active income. TAX BIDEN HIS DEMS AND POLITIANS.