As Congress pushes forward with the $3.5 trillion reconciliation package, the Big “I” joined other small business organizations to voice opposition to increasing taxes on Big “I” members and their business clients.
As of press time, the U.S. House Committee on Ways and Means has begun to markup the portion of the Democratic party's $3.5 trillion reconciliation package which they have jurisdiction over.
This week's markup is expected to focus on their spending plans, including paid family and medical leave for all U.S. workers, requiring employers without employer-sponsored retirement plans to automatically enroll their employees in IRAs or 401(k)-type plans, and expanding Medicare coverage to include dental, vision and hearing benefits.
Next week, a number of significant tax increases are expected to be considered by the committee.
In anticipation of the committee's upcoming consideration of tax policy, the Big “I" joined a number of small business organizations in sending two letters to leaders of the Ways and Means Committee. Both letters make clear that the Big “I" opposes increasing taxes on our members and their business clients.
The first letter takes a broad approach and urges members of the Ways and Means Committee to reject any measures that would raise taxes on Main Street employers as part of the upcoming reconciliation bill.
The letter goes on to make clear that the Big “I" opposes Biden administration and Democratic congressional proposals that raise individual and corporate tax rates, increase the capital gains tax, and eliminate stepped-up basis. These proposals pose a triple threat to the ability of individually and family-owned businesses to survive by raising taxes as they operate, when they are sold and when they are passed on to the next generation.
The second letter is targeted and emphasizes that the Big “I" supports the continuation of stepped-up basis. Stepped-up basis prevents family-owned businesses and farms from being hit with two significant and damaging tax bills when a family member passes away—the capital gains tax on any appreciated assets and the estate tax on whatever is left.
The letter also communicates opposition to any changes to stepped-up basis that would impose this “double death tax" and increase taxes on family-owned businesses and farms—including administratively unworkable “protections" that simply delay these destructive tax hikes.
As congressional Democrats push forward with reconciliation, the Big “I" will continue to advocate on behalf of its members and strongly oppose any attempts to increase taxes on Big “I" members.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.