[ad_1]
The National Federation of Independent Businesses(NFIB) is urging small business owners to keep the pressure on President Joe Biden and Congress.
Last year, the Biden Administration and Congress Proposed a series of new tax increases and mandates. The NFIB says that the increases and mandates are “dishonestly masked” as being needed to “close a loophole” and “fund Medicare.” Neither of these things are true. according to the NFIB. What’s true, says the NFIB, is that small businesses are already being impacted by things such as inflation, the tight labor market and supply chain issues. Small businesses don’t need another tax.
The 3.8% Small Business Surtax
A version of the 3.8% small business surtax has been around since 2013, when it was included as part of the Affordable Care Act. However, it has not been imposed on business income. It was imposed on interest, dividends, annuities, royalties, rents and passive income.
The NFIB says Congress is poised to expand the small business surtax to included business income earned by pass through small businesses. Pass through small businesses would include S corps, LLCs, sole proprietorships and partnerships.
The surtax is included as part of the Build Back Better Act, and Congress has not yet voted on it.
Business Impacted
There are business income guidelines. The 3.8% surtax would be levied on business income of more than $400,000 ($500,000 for joint returns). The 3.8% surtax would also be levied on business held in trusts which earned more than $13,000.
Other Proposes Increases and Mandates
In 2021 the Biden Administration and Congress proposed a series of new tax increases and mandates, including the following. The information included below was compiled by the NFIB:
- Limiting the Small Business Deduction (IRS Section 199A)
- Increasing the corporate tax rate to 28% without lower rates for small businesses
- Raising the top income tax rate on individually- and family-owned businesses from 37% to 39.6%
- Eliminating stepped-up basis
- Increasing the top capital gains tax rates
- Taxing unrealized gains above $100 million with concern the threshold would quickly be lowered over time
- Enacting elements of the Protecting the Right to Organize (PRO) Act
- Mandating that employers provide paid sick leave and retirement accounts
- Establishing a complicated and inflexible new federal-government-run family and medical paid leave program
What Can You Do?
Thanks to the work of the NFIB and small business owners’ advocacy, several harmful proposals were eliminated from the House-passed version of the Build Back Better Act. However, these policies can still come back in the future legislation, and as the U.S. Senate considers the Build Back Better Act.
What can you do?
You can contact your elected representatives and urge them not to pass legislation that further impacts and challenges small business owners.
Get the latest headlines from Small Business Trends. Follow us on Google News.
Image: Depositphotos
if(window.fbAsyncInit===undefined){window.fbAsyncInit=function(){FB.init({appId:’226827567352028′,xfbml:true,version:’v9.0′});};(function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(d.getElementById(id)){return;}
js=d.createElement(s);js.id=id;js.src=”https://connect.facebook.net/en_US/sdk.js”;fjs.parentNode.insertBefore(js,fjs);}(document,’script’,’facebook-jssdk’));}!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’,’573364149534092′);fbq(‘track’,’PageView’);(function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(d.getElementById(id))return;js=d.createElement(s);js.id=id;js.src=”https://connect.facebook.net/en_US/all.js#xfbml=1&appId=226827567352028″;fjs.parentNode.insertBefore(js,fjs);}(document,’script’,’facebook-jssdk’));
[ad_2]
Source link
