With 40-year high inflation, President Biden’s budget threatens to increase burdens for taxpayers further by including tax hikes on Americans and over one million small businesses, reversing the gains made under the Republican-led Tax Cuts and Jobs Act (TCJA).
- President Biden is violating his tax pledge by seeking tax hikes on American families and small businesses.
“President Biden’s recently announced budget proposes raising taxes by $2.5 trillion. He plans to hike taxes by one-third on the approximately one million small businesses structured as corporations. He also wants to raise tax rates on successful Americans and small businesses structured as pass-throughs.”
“Biden’s tax hikes would reverse the tax cuts associated with the Tax Cuts and Jobs Act (TCJA) signed into law at the end of 2017.
- Right after a pandemic and in the midst of rising inflation is the worst time to raise taxes on small businesses.
“Small businesses depend on tax certainty to bring the economy and labor market back to pre-pandemic levels. Small businesses and ordinary Americans also need these tax savings to help blunt the impact of historic inflation caused by Democrats’ reckless spending that’s devalued the dollar. This week, the Bureau of Labor Statistics announced that consumer prices have risen by 8.5 percent and wholesale prices by 11.2 percent over the previous year. Eliminating the TCJA would compound the pain of this inflation tax.”
CLICK HERE to read the full op-ed.
- In April, Mr. Ortiz testified during a Ways and Means Committee hearing, warning that Democrats’ threat of crippling tax hikes, inflationary spending, and persistent worker shortage disproportionately harm minority families and small businesses. In his testimony, Mr. Ortiz said:
- “President Biden’s proposed tax increases and labor regulations would disproportionately impact small businesses, reducing their ability to expand, hire, and raise wages for minority employees.”
Watch the full testimony here: Biggest Hurdle Facing Minority Workers & Small Biz: Democrats’ Policies, Spending, and Tax Hikes
- The threat of these tax hikes has throttled small business optimism to record lows, according to the recent National Federation of Independent Business (NFIB) survey.
- Economists, experts, and Ways and Means Republican Leader Rep. Kevin Brady (R-TX) are warning that worsening inflation and a wage-price spiral have the economy headed towards a recession. Rep. Brady said:
- “Prices right now are growing three times faster than paychecks. For an average family in America, it means 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. Not a good sign. We also got bad news from small businesses yesterday. Their optimism is at the lowest ever recorded. And for maybe the same reason – inflation is just hammering them and they can’t find workers.”