Dems Introduce Nightmarish Tax Hike
This is going to hurt!
On Thursday, President Joe Biden suggested increasing the corporate tax rate from 21 percent to 28 percent, a proposal that could potentially create a financial burden for corporations of all sizes including middle class Americans that own smaller family businesses.
According to Breitbart, although the term “corporation” often refers to major enterprises like Apple, Amazon, and McDonald’s, C-corporations encompass businesses of all sizes and are the most common type of corporation. With C-corporations, individual shareholders face double taxation as profits are taxed on both a corporate and personal level.
The Small Business Administration (SBA) reports that small businesses, which make up 99.7 percent of firms with paid employees, are responsible for generating 65.1 percent of net new jobs created between 2000 and 2019. There are around 31 million small businesses in the US, of which 81 percent (25.7 million) are operated by a single individual with no employees.
In Philadelphia on Thursday, Biden unveiled a plan to boost the corporate income tax by seven points, effectively eliminating most of the tax cuts put in place by Republicans during the Trump administration.
“The Budget would set the corporate tax rate at 28 percent, still well below the 35 percent rate that prevailed prior to the 2017 tax law,” Biden’s proposal says.
