WHAT THEY’RE SAYING: Under Biden’s Reconciliation Bill, Family Businesses Face Highest Tax Rates in the Developed World
President Biden’s “tax increases … would make a bad situation worse and encourage continued consolidation of economic power and decision making,” according to a letter from over 100 major trade associations urging Congress to reject President Biden’s multi-trillion-dollar tax and spending bill. “Having survived the pandemic, family businesses” are under strain with “rising inflation, labor shortages, and supply-chain disruptions.”
Key Excerpts:
- “Higher tax rates … would harm tens of thousands of modestly sized family businesses located across the country.”
- “The Tax Foundation estimates they will push the marginal rates of family businesses making more than $500,000 to over 50 percent.
- “When coupled with state and local levies, these rates hikes will result in the family businesses facing the highest marginal rates in the OECD, exceeding 57 percent.”
- “The tax increases … would make a bad situation worse and encourage continued consolidation of economic power and decision making. Large, multi-national corporations have thrived during the pandemic. [Democrats’ proposals] would tilt the rules further in their favor and away from locally- and family-owned businesses.”
CLICK HERE to read the full letter.
KEY TAKEAWAYS:
- While hiking taxes on Main Street and the middle class, Democrats are offering about a half a trillion dollars in green subsidies and giveaways to the wealthy and big corporations.
- Americans are questioning President Biden’s competence to heal the economy as he remains nearly 1 million jobs short than he promised as part of his $2 trillion so-called stimulus in March. His reconciliation bill will only sabotage the economy further with these $1.2 trillion dollars of tax hikes on America’s job creators and spending putting American families further behind with Bidenflation.
- Under Biden’s plan, small businesses will bear the burden of being hit by over $400 billion in taxes. Some could pay as high as 57 percent — the highest tax rate in the developed world. This means Washington has a greater claim over your earnings than you do.