(ReclaimingAmerica.net) – After reading the following report about Biden’s tax hike, please share your opinion by emailing [email protected]. Thank you.
President Joe Biden announced a proposal to spike the corporate income tax rate by 7 points – from 21% to 28% – an increase which seems set to affect both big and small businesses.
The president’s announcement in Philadelphia last week as part of his $6.9 trillion budget proposal made it clear it would do away with most tax cuts enacted by the GOP during President Donald Trump’s term from 2017-2021.
“The Budget would set the corporate tax rate at 28 percent, still well below the 35 percent rate that prevailed before the 2017 tax law,” reads Biden’s proposal, as cited by Breitbart News.
The news outlet comments that his remarks “did not appear to clarify” whether his take hike proposal “would only impact big businesses that have the resources to avoid as many taxes as possible.”
At the same time, though, Biden signaled he was prepared for budget talks with the Republican speaker of the US House of Representatives, Kevin McCarthy (R-CA).
The president and the Democrats need the GOP majority in the lower chamber of Congress to sign on to a further increase of the debt ceiling of $31.4 trillion, which the US government hit in January.
“I’m ready to meet with the speaker anytime. My budget reflects what we can do to lift the burden on hard-working Americans,” Biden declared.
The report notes that although the term “corporation” is typically used to refer to Big Business companies such as Walmart, Microsoft, or Mcdonald’s, C-corporations include both large and small businesses.
“Individual shareholders of C-corporations already have profits taxed both on a corporate and personal level (double taxation),” it points out.
Data from the Small Business Administration (SBA) shows that small businesses created 65.1% of the net new jobs from 2000 until 2019 and makeup 99.7% of companies with paid employees.
There are about 31 small businesses in the United States, but 81% of them – 25.7 million – don’t have any employees meaning a single person operates them.
According to Breitbart, “Biden appeared excited to raise corporate taxes.”
However, his budget proposal would have to be approved by the GOP-dominated House, and Republican Conference Chair Rep. Elise Stefanik (R-NY) insisted it should be friendly towards small businesses.
“When I think about the budget challenges we face, I think about hard-working families in my district, farmers, and small business owners. When they are facing challenges, they open their books and look for common sense ways to find savings to ensure that they can continue to grow for future generations,” Stefanik declared.
Even some Democrat members of Congress “appear to be worried” by Biden’s proposed tax hike, especially since it would potentially materialize in an election year and affect all 31 million small businesses in the country.
Those concerned on the left are, in particular, Sens. Joe Manchin (D-WV), Jon Tester (D-MT), and Sherrod Brown (D-OH), as they are up for reelection.
“I don’t know what he’s going to raise taxes on, that’s critical,” Tester said when reporters asked him about Biden’s tax increase promises last week.
“If it’s about tax equity, we’ll take a look at it. If it’s about across-the-board tax increases for everybody, it’s probably the wrong time to do it because of inflation,” he stated.
Biden proposed raising the corporate tax rate from 21 percent to 28 percent, a scheme that will likely burden both large and small businesses. https://t.co/i1l0KEysMM
— Breitbart News (@BreitbartNews) March 12, 2023