Small business owners support higher taxes on the rich
To fund investments in infrastructure that will strengthen our economy, President Joe Biden has proposed tax increases that ensure businesses and the wealthy contribute their fair share to the effort.
Cue the spurious complaint: it will ruin American small businesses.
Garbage can. Despite what the National Federation of Independent Businesses and other critics would have you believe, many small business owners welcome investing in our infrastructure because of the economic benefits it will bring. And they, like most other Americans, want to see businesses and the wealthy participate more.
The vast majority of small business owners are unaffected by the proposed changes to the top tax brackets, the small business deduction, inheritance taxes, capital gains tax, or the tax rate. corporate taxation.
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Most small businesses are not taxed as corporations, and their owners are not wealthy. They are largely from the middle class.
And the claim that taxing the rich hurts investment in small businesses is another version of the spillover economy theory often deployed to protect the rich.
In the public discourse on taxes, there is an amalgamation of interests of large and small businesses, but in reality their situations are very different. For example, the corporate tax rate adjustment proposals do not affect 95% of small businesses because they are not taxed as corporations.
This results in surprisingly different attitudes towards taxation – and not a little frustration on the part of small business owners about the tax cuts given to businesses under former President Donald Trump.
Small Businesses Face Different Problems
This difference in attitude should not be surprising. Does anyone think Amazon and a family-owned pizzeria are facing the same tax issues? Of course not. But those who try to keep big corporations from paying more taxes want you to think so because we all love the family-owned pizza place and want it to thrive – while the public is blindly eyeing the shenanigans. taxation of large companies.
Small Business for America’s Future has surveyed small business owners since 2017 for their thoughts on taxes. The answers have been clear and consistent: Small business owners think big businesses aren’t paying their fair share, they think lawmakers favor big businesses, and they want a tax code that level the playing field.
The tax code favors large companies
Our most recent survey of over 1,000 small business owners on taxes and infrastructure shows:
►72% of small business owners surveyed say the current tax code favors large businesses.
►75% do not believe that large companies pay their fair share of taxes.
►76% agree that small businesses are harmed when businesses use loopholes to avoid paying taxes.
►60% support the partial cancellation of the 40% tax cuts granted to large companies in 2017 to finance infrastructure investments.
►76% of small business owners say infrastructure investments will boost the economy, and 72% say they will specifically help small businesses.
►51% of small business owners say raising taxes for Americans earning more than $ 400,000 a year would not hurt small businesses.
As the Delta Variant hampers our economic recovery, and government programs like the Paycheque Protection Program designed to help small businesses survive during the pandemic expire, it is more important than ever that our lawmakers invest in health. and the long-term strength of our economy. The investments proposed by the president in the infrastructure of the country are a chance to do so.
Anne Zimmerman, Co-Chair of Small Business for America’s Future, is founder and owner of Zimmerman & Co. CPAs, with offices in Cincinnati and Cleveland.