The coalition intends to spread the message that the tax increases proposed in the American Jobs Plan and the American Families Plan would stall economic recovery rather than fuel it.
In recent months, President Biden has unveiled two proposals which would raise taxes on American businesses both small and large. His American Jobs Plan would raise taxes on corporations while his American Families Plan would raise taxes on individuals and pass-through businesses.
For Big “I" members, of which about one-third pay the corporate tax rate, the most significant provision in the American Jobs Plan would raise the corporate tax rate from 21% to 28%. The American Families Plan also includes a number of troublesome tax proposals that would hurt small businesses. It would increase the top marginal tax rate for individuals to 39.6% from the current 37%.
Additionally, for all households making more than $1 million, the plan would tax capital gains as ordinary income at a rate of 39.6%, up from the current rate of 20%. When added to the existing 3.8% Medicare tax on investment income, the new top-level rate for individuals would be as high as 43.4%. Furthermore, Biden's plan calls for ending a tax preference known as "stepped-up basis" that allows people to pass investments to heirs tax free at the time of their death. In all, the Biden administration estimates their plan would raise about $1.5 trillion across the next decade.
Additionally, although President Biden's recent proposals have not called for a repeal of the 20% deduction for pass-through businesses, congressional Democrats could still push to include its repeal to pay for some of their spending priorities.
In response to this increased threat of tax increases, the Big “I" has joined the America's Job Creators for a Strong Recovery coalition as a founding member. The coalition consists of a group of associations representing individual and family-owned businesses and corporations that oppose these job-killing tax increases as the country looks to move past the COVID-19 pandemic.
The coalition intends to spread the message that these tax increases on America's job creators would stall the economic recovery rather than fuel it and counteract the economic benefits of smart infrastructure spending.
As President Biden and congressional Democrats consider ways to pay for their spending priorities, the Big “I" will continue to strongly advocate against raising taxes on small businesses and Big “I" members.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.