Just as small business owners thought they had begun to see the light at the end of the tunnel after surviving a two-year pandemic, new obstacles have arisen—this time in the form of proposed tax hikes on small businesses. According to Ways and Means, Biden recently announced budget proposes raising taxes by $2.5 trillion$2.5 trillion according to Ways and Means. These tax hikes would reverse the tax cuts associated with the Tax Cuts, and Jobs Act (TCJA), signed into law at the end of 2017. TCJA grew American jobs, paychecks, and the economy as a whole. There was more opportunity, unlike today where working families’ paychecks are now nearly one percent lower than before TCJA was enacted. Biden plans to hike taxes by a third on the approximately one million small businesses structured as corporations as well. Based on the 2018 IRS data, this means that almost 900,000 small businesses could be hit with this tax hike.
The Ways and Means recent study found that President Biden’s tax hikes would gouge family wages across all income levels, with those making between $33,100 and $50,229 having their after-tax income shrink by more than $2,000.
Ways and Means ranking member Kevin Brady mentioned, “prices are growing three times faster than paychecks. For an average family in America, it means that you’ve lost ground by about $5,700 over the last year, which is why most Americans feel like they’re financially worse off now than they were during the height of the COVID pandemic. The optimism is at the lower ever recorded, and maybe for the same reason, inflation is just hammering them, and they can’t find workers”.
AMAC Action President Bob Carlstrom said: “AMAC Action applauds Republicans on the Ways and Means Committee for continuing to oppose Biden’s harmful tax hikes. It makes no sense, as many are still working to recover from the pandemic, to raise taxes on small businesses. AMAC Action remains committed to preventing these tax hikes from becoming law this year and throughout the Biden Presidency.”