Democrats’ Manchin-Biden Build Back Better bill raises taxes on small businesses already suffering under record-high inflation and a worker shortage. These new, higher taxes will slow the economy and translate into higher and longer inflation.
Over 4.7 million Main Street businesses organized as pass-throughs – employing nearly half of America’s workforce – will be hit with tens of billions of dollars in new taxes.
- Democrats opted for a tax on small businesses in order to protect SALT deductions for millionaires and billionaires.
- This tax limits the ability of Main Street “pass-through” businesses to claim losses in excess of a specified threshold—only allowing any excess loss to be carried forward in later years.
Manchin-Biden Build Back Better violates President Biden’s pledge against raising taxes on small businesses.
- Small businesses facing 40-year inflation as the economy enters a recession are terrified of the Schumer-Manchin “Inflation and Recession Act,” which will worsen inflation, hurt employment, and hike taxes on American families and small businesses.
Struggling under inflation, a worker shortage, and looming recession, small businesses optimism is at an all-time low:
- Main Street businesses still face a record labor shortage with over 10 million job openings for nearly a year, while small businesses lost jobs three out of the last four months.
- Small business optimism has plummeted to its lowest point ever as businesses brace for Democrats’ tax increases at the worst possible time.