Slashing the Small Business Tax Deduction Hurts U.S. Workers
Not only will Democrats raise taxes on working families to pay for their $3.5 trillion spending spree – they’ll raise taxes on Main Street by eliminating the small business tax deduction.
In 2019, at least 21 million small businesses and their employees benefitted by the more than $66 billion in savings this deduction created – but Democrats want to take those earnings to advance their radical agenda.
In an op-ed for The Chicago Tribune, Nicole Wolter – who owns and operates a manufacturing facility in Illinois – highlights how this provision boosted her employees’ paychecks:
“As a small-business owner in Illinois, my company and the dozens of people we employ experienced the benefits firsthand. The savings created by the deduction allowed my business, HM Manufacturing, to provide employees with bonuses, wage increases, and 100% paid health care. We were also able to purchase new machines and hire even more people to operate them.”
Read the full op-ed here. For a one-pager on Democrats’ small business tax hikes, click here.
The Tax Cuts and Jobs Act Boosted Main Street Workers’ Pay:
- The Tax Cuts and Jobs Act (TCJA) created the first-ever 20 percent deduction for small businesses, which has allowed local job creators to keep more of their hard-earned money to hire, invest, and grow in their communities.
- This provision contributed to the strongest small business economy in a generation and the resurgence of American manufacturing pre-pandemic.
- In 2019, the deduction created more than $66 billion in savings for business owners.
Americans Making Less Than $400,000 Will See Their Taxes Go Up:
- Democrats’ small business tax hike raises taxes on those making less than $400,000 a year.
- The left-leaning Tax Policy Center and non-partisan Joint Committee on Taxation agree: President Biden’s overall tax plan will raise taxes on the middle-class.
Democrats Are Already Crushing Main Street’s Hiring Efforts:
- According to the Job Creators Network, less than 10 percent of small businesses have fully recovered from the pandemic.
- Democrats’ $300 a week bonus unemployment benefits, along with other expansions of welfare benefits and cash payments not related to work, are contributing to a record 10 million unfilled jobs.
Bottom Line: The last thing America’s small businesses need is higher taxes to pay for Democrats’ runaway spending.