Small Business Tax Hikes Amidst Recession in Manchin-Biden Build Back Better Mean Higher and Longer Inflation
August 8, 2022 - Blog - Press Releases - Select Revenue Measures
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.
READ: One-Pager: Senate Version of Manchin Biden Build Back Better
Key Takeaways:
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.
READ: Industries, Business Leaders, Taxpayer Orgs: Manchin-Biden Build Back Better Harms Economy, Kills Jobs
