Biden is beaten up for breaking campaign promise NOT to raise taxes on small businesses: New levy will hit 1.9 million businesses and see people who inherit loved ones’ businesses taxed
- During the election campaign, Biden was asked if he would raise taxes on small businesses
- On February 20, 2020, he said, “No. Small business taxes will not go up
- Next week, the Democrats in the House of Representatives will vote on the framework for the tax hike
- Biden wants to raise the highest marginal income tax rate from 37 to 39.6 percent
- Americans for tax reform calculate that 1.9 million small businesses will be affected
- In addition, Biden plans to remove a “top-up” based on the inherited property
- The rule means the testator can sell the property immediately without paying capital gains tax – a loophole that Biden wants to fill
Joe Biden plans to raise taxes on small businesses – although he promised not to do so during the election campaign.
The White House proposal – backed by the President himself – will go through Congress next week.
Last week the Senate passed a $ 3.5 trillion budget decision that would pave the way for legislation based on Biden’s plans, and the House by a Democratic majority is expected to vote on the budget decision next week, which means that it will almost certainly be passed.
The regulation will raise the top tax rate from 37 percent to 39.6 percent. A marginal tax rate is the additional amount of tax paid on every dollar of income above a previous tax bracket.
Joe Biden, seen on Friday, promised in the campaign not to raise taxes for small businesses – but his new plan calls for an increase of 1.9 million
The Americans For Tax Reform think tank has calculated that 1.9 million small businesses will be affected.
Most are small business owners who run their businesses as a C corporation. They are entities separated from their owners’ finances, protecting their owners from any personal liability should their businesses fail.
Biden wants the C-Corps to be affected by a seven percent federal tax increase from the current 21 percent to 28 percent.
In his debate with Donald Trump on February 20, 2020, Biden was asked directly during the election campaign whether taxes would rise for small businesses.
MSNBC’s Hallie Jackson said, “I want to ask you if Latinos own any of four new small businesses in the United States. Many of them have benefited from President Trump’s tax cuts and they may be hesitant about new taxes or regulations. Will taxes go up on your small businesses under your administration? ‘
Biden replied, “No. Small business taxes will not go up. ‘
Small businesses pictured in San Francisco in April suffered immensely during the pandemic. Now many of them are faced with an increase in their tax burden
On Thursday, the government defended the U-turn, insisting that the tax hike was necessary.
“President Biden’s small business agenda is about more than just helping businesses get out of the other side of this crisis,” said Wally Adeyemo, Assistant Secretary of the Treasury.
“It’s about building better and creating a fair economy for all Americans.”
The government also said 3.9 million small business owners would receive tax cuts as part of Biden’s proposals to extend the child tax credit extensions and Affordable Care Act subsidies contained in the president’s Coronavirus Relief Act.
Biden is pictured with House Speaker Nancy Pelosi on June 30th. Pelosi will begin running the budget reconciliation plan through the house next week, which will pave the way for the tax hikes
Tax Reform Americans also pointed out that small business owners would be affected by a plan to abolish what is known as the “step-up-in-base” regime for inheritance tax.
Under the current regime, individuals who inherit from their relatives can dispose of the asset without paying capital gains tax.
Biden wants to give up the deal.
Robert W. Wood, a tax attorney, wrote in Forbes: “Under current tax law, assets that go directly to your heirs receive an increase in their income tax base.
“It doesn’t matter whether you pay inheritance tax in the event of death or not.
“For generations, assets held at death have been increased – to market value – when you die.
‘Small businesses count on it.’