In releasing the framework for their $3.5 trillion spending bill, Democrats claimed their legislation would include language to “prohibit tax increases on…small businesses.” But the budget Democrats passed includes no such prohibition, and it’s not difficult to understand why.
President Biden—who has used questionable tactics to reduce his family’s tax bills by nearly $517,000 over the past four years—has proposed raising taxes on millions of businesses, most of them small firms. And Senate Finance Committee Chairman Ron Wyden, D-Oregon, included a proposal for similar revenue hikes in a menu of potential tax increases he recently released.
It’s but one example of how the tax hikes funding (part of) Democrats’ $3.5 trillion spending binge will crush economic growth in the private sector, even as government continues to explode with the gusher of new spending.
Joe Biden’s Tax Dodging
Both issues relate to S-corporations, in which the business’ income gets passed through to the owners’ federal tax returns. Under current law,