Republicans on the U.S. House Small Business Committee expressed their opposition to proposed tax increases on small businesses in a letter to President Joe Biden and House Speaker Nancy Pelosi (D-CA) this week.
“Make no mistake, these tax hikes will negatively impact all types of small businesses. A new survey by the Small Business and Entrepreneurship Council found a majority of small business owners believe these new taxes will significantly hurt their ability to recover from the pandemic. This is unacceptable and is not appropriate or economically advisable to saddle small businesses with increased tax burdens,” the committee Republicans wrote in the letter.
The letter was signed by all 12 Republicans on the committee, including ranking member U.S. Rep. Blaine Luetkemeyer (R-MO) and vice ranking member U.S. Rep. Roger Williams (R-TX).
According to the lawmakers’ letter, proposals from Democrats include cutting the 20 percent small business tax deduction that was enacted by the Tax Cuts and Jobs Act of 2017, nearly doubling the long-term capital gains rate from 23.8 percent to the top ordinary capital gains rate of 39.6 percent, and repealing the step-up in basis of an inherited asset at death.
“As a small business owner of over 50 years, I understand firsthand the negative impacts increased taxes have on business owners,” Williams said. “Main Street America is the backbone to our economy and should not be fronting the bill for Biden and Pelosi’s liberal government programs, such as Green New Deal priorities and government-controlled healthcare. As business owners across the country continue to adapt and recover from the COVID-19 pandemic, the Democrats’ proposed tax increases would slow our economic recovery and hurt their ability to quickly recover, leading to less jobs and revenue.”