Biden to Impose Small Business Tax Hikes in Violation of Campaign Pledge
Isabelle Morales
Posted: May 14, 2021 12:01 AM
During the 2020 campaign Joe Biden promised that taxes on small businesses would not go up. So why is he now pushing numerous tax hikes that would hit small businesses?
His promise is not up for interpretation. During a Democratic debate in February 2020, Biden said: “No. Taxes on small businesses won’t go up.”
Now that he is safely in office, it appears he has no intention of keeping this promise. The $3.5 trillion in tax hikes Biden has proposed includes several small business tax hikes. His proposal to increase the top marginal income tax rate would hit small businesses organized as pass-throughs. His proposal to raise the corporate income tax rate would target the one million small businesses organized as C-corporations.
Finally, his plan to create a second death tax through repealing step-up in basis will hit family-owned businesses and add an immense amount of tax complexity.
Most small businesses pay taxes on the individual side of the code. Biden's increase in the top marginal income tax rate to 39.6 percent will hit small business organized as “pass-throughs” like sole proprietorships, LLCs, partnerships, and S-corporations. Therefore, by raising to top marginal income tax rate, Biden is raising taxes on these small businesses.
more
https://townhall.com/columnists/isabellemorales/2021/05/14/biden-to-impose-small-business-tax-hikes-in-violation-of-campaign-pledge-n2589421
