New Tax Warning Issued as Biden’s New Rules Will Hurt Small Businesses

New Tax Warning Issued as Biden's New Rules Will Hurt Small Businesses

( – During his presidential campaign, Joe Biden claimed he would not raise taxes on small businesses if he became president. But, one organization that advocates for lower and simpler taxes issued a red flag about Biden’s latest proposal, noting that it will actually hurt small businesses.

On Wednesday, May 5, Americans for Tax Reform (ATR) highlighted three ways Biden will raise small business taxes and, therefore, break his campaign promise.

First, Biden will increase the top marginal income tax rate to 39.6%, which will affect all types of small businesses, from partnerships to LLCs. Next, Biden’s proposed corporate tax hike from 21% to 28% will impact over one million small businesses that are technically classified as corporations. Finally, Biden wants to nix the step-up in basis, which would essentially add a second death tax to small business owners hoping to pass their life’s work onto their children.

The AFR detailed these issues further on their site:

In spite of Biden’s insistence that his tax changes won’t affect small businesses, they will. Perhaps rather than focusing solely on pushing his liberal agenda, Biden should spend a bit more time truly understanding where the money to pay for it will all come from.

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