Scott Fitzgerald: “The biggest tax increase for small business in over 50 years--let me say it again--the biggest tax increase for small…”

“The biggest tax increase for small business in over 50 years--let me say it again--the biggest tax increase for small business in over 50 years. This is what President Biden and my colleagues across the aisle are proposing in order to pay for part of their multi-trillion-dollar spending package. The President and the Democrats have proposed a range of options that will hurt economic growth and fall on the backs of small businesses, like raising the corporate tax, raising the individual tax rates, taxing unrealized capital gains, and giving the IRS authority to spy on Americans' bank accounts. In announcing the tax increases, the Biden administration said their agenda: ``Will protect 97 percent of small business owners from tax increases, while delivering tax cuts to more than 3.9 million entrepreneurs.'' But here is the problem. It doesn't add up. The statement doesn't add up. It doesn't hold up to the scrutiny. The reality is that approximately 1.4 million small businesses are structured as C corporations, meaning that they will be subjected to the proposed 28 percent corporate tax rate, as opposed to the current rate of 21 percent. Let's talk about S corps. If you are not familiar with the S corp or the LLC, an individual small business owner's taxes flow through the S corp. So what is going to happen? They are going to increase the individual tax rate. What will that mean? S corps and LLCs will see an increase in the amount of taxes that they are paying.…”