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Democrat Tax Hikes Hit Millions of American Small Businesses, Kill Jobs, Slash American Wages

July 28, 2021

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Democrats are going after American small businesses with a second death tax on family farms, tax rate hikes for all types of small businesses, and repeal of the small business tax deduction—killing jobs, lowering wages, and slowing economic growth.

Democrats’ supercharged second death tax on small family farms and businesses will cost one million jobs over the next 12 years.

  • According to an economic analysis by the Family Business Estate Tax Coalition, Democrats’ brand new second death tax will destroy over a million jobs slash paychecks for workers by $32 for every $100 in revenue raised, and shrink our economy by $100 billion over the next decade.
  • More economic analysis from Regional Economic Models for the Committee to Unleash Prosperity finds that President Biden’s proposal would increase taxes on small and family-owned businesses, kill 500,000 to almost 1,000,000 jobs each year, and slash Americans’ personal income by roughly $1 trillion over 10 years—roughly $8,000-$10,000 per household.

Democrats want to slash the 20 percent small business deduction that created more than $66 billion in savings for small business owners in 2019.

  • More than 80 percent of NFIB members say this deduction is important to their business, and more than 90 percent want it to be made permanent. As The Wall Street Journal’s Richard Rubin notes, the Democrats’ proposal would give a tax break to wealthy individual attorneys and lobbyists while harming many American manufacturers.
  • More than 21 million small businesses claimed this deduction on their income in 2019 according to IRS data.

Nearly one quarter of small employers in 2017 were small businesses that file as corporations—yet Democrats will increase their taxes by 33 percent. 

  • According to analysis by the U.S. Chamber of Commerce, 1.4 million small businesses will be negatively impacted by Biden’s tax hikes.
  • According to the National Association of Manufacturers, more than 1 million jobs would be lost in just the first two years if President Biden’s tax increases were to be implemented.

Coming out of a pandemic, the last thing Americans need are Democrats’ tax hikes on Main Street and family businesses.

CLICK HERE for a printable version of this one-pager.