{"id":761297,"date":"2021-09-16T09:51:02","date_gmt":"2021-09-16T13:51:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=761297"},"modified":"2021-09-16T09:51:06","modified_gmt":"2021-09-16T13:51:06","slug":"analysis-democrats-say-theyre-taxing-the-rich-but-theyre-actually-crushing-small-businesses","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-democrats-say-theyre-taxing-the-rich-but-theyre-actually-crushing-small-businesses\/","title":{"rendered":"Analysis: Democrats Say They\u2019re \u2018Taxing The Rich,\u2019 But They\u2019re Actually Crushing Small Businesses"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-democrats-say-theyre-taxing-the-rich-but-theyre-actually-crushing-small-businesses%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=761297&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/GettyImages-1296690507.jpg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>According to a new analysis, Democratic lawmakers\u2019 newest tax hike will severely impact small businesses.<\/span><\/p>\n<p><span>The potential $2.9 trillion in new taxes follows a separate Democratic attempt to pass a $3.5 trillion social welfare agenda \u2014 without any support from Republican colleagues. Among other <\/span><a href=\"https:\/\/www.dailywire.com\/news\/how-the-democrats-new-tax-hike-will-impact-your-wallet\"><span>items<\/span><\/a><span>, the revenue proposal suggests raising the income tax, the corporate tax, and the investment tax, as well as creating an additional surtax on wealthy Americans.<\/span><\/p>\n<p><span>It would also introduce forced retirement account distributions, taxes on tobacco and nicotine products, subsidies for journalists, and nearly $80 billion for the Internal Revenue Service to enforce federal tax laws.<\/span><\/p>\n<p><span>In a recent analysis, however, <\/span><a href=\"https:\/\/www.atr.org\/dems-set-break-biden-small-business-tax-pledge\"><span>Americans for Tax Reform<\/span><\/a><span> notes that many of the new tax increases will target small businesses.<\/span><\/p>\n<p><span>For instance, raising the top income tax rate from 37% to 39.6% \u201cwill increase taxes on businesses organized as pass-through entities like sole proprietorships, LLCs, partnerships and S-corporations\u201d \u2014 a legal status that applies to 95% of America\u2019s 26 million businesses. Pass-through companies also hire \u201c65.7 million of all private sector workers,\u201d carrying worrying implications for small business employment.<\/span><\/p>\n<p><span>Democratic lawmakers\u2019 suggestion to expand the 3.8% Obamacare net investment income tax \u201cso that it applies to all earnings from passthrough businesses\u201d will also raise costs for millions of small businesses.<\/span><\/p>\n<p><span>Meanwhile, limiting the 20% small business deduction to $500,000 for a joint tax return \u2014 or $400,000 for an individual return \u2014 would impact as many as 860,000 households.<\/span><\/p>\n<p><span>\u201cWhile some Democrats characterize this tax cut as a \u2018giveaway\u2019 or \u2018loophole\u2019 for the wealthy, the Small Business Deduction is limited to prevent taxpayers from taking advantage of the tax code by improperly allocating wage income, which is paid by the individual, as business income,\u201d explains the analysis. \u201cOne of the main limitations within the deduction is a wage limitation combined with a capital limitation. The wage limitation applies to taxpayers with greater than $315,000 in income for joint filers or $157,500 for single filers and is phased in over the next $100,000 or $50,000, respectively.\u201d<\/span><\/p>\n<p><span>Likewise, increasing the highest corporate tax bracket\u2019s rate from 21% to 26.5% would impact the roughly 1.4 million small businesses currently operating as C-corporations.<\/span><\/p>\n<p><span>The analysis refers to a United States Chamber of Commerce <\/span><a href=\"https:\/\/www.uschamber.com\/press-release\/us-chamber-launches-state-initiative-shows-small-businesses-would-be-hit-hard\"><span>study<\/span><\/a><span> examining the state-by-state impact of such a corporate tax increase. In New Jersey, for instance, \u201c45,053 small businesses would face a combined state and federal corporate tax rate\u201d of 36.3%. In West Virginia, \u201c6,081 employers will face tax hikes, including 4,203 small businesses,\u201d resulting in a combined state and federal tax rate of 32.7%.<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a new analysis, Democratic lawmakers\u2019 newest tax hike will severely impact small businesses.The potential $2.9 trillion in new taxes follows a separate Democratic attempt to pass a $3.5 &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-761297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/761297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=761297"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/761297\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=761297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=761297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=761297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}