Why small-business owners support higher taxes for the wealthy
There is a conflict brewing between small and large business interests in the public debate about taxes.
President Joe Biden has suggested tax increases to pay for infrastructure investments that will help strengthen our economy. This ensures that corporations and the wealthy contribute their fair share.
They want corporations and the wealthy to invest more, just like many other Americans.
Proposed changes to the higher income tax brackets and the small business deduction, capital gains taxes, or the corporate rate are not expected to affect the majority of small-business owners.
Small businesses are generally not subject to the same tax as large corporations and their owners may not be wealthy. They are largely members of the middle class.
The assertion that taxing wealthy people hurts small-business investment is yet another example of the theory behind trickle-down economics, which is often used to protect wealth.
There is an underlying misperception that big and small businesses are in the same boat when it comes to taxes. However, their actual situations are very different. Proposals to adjust the corporate rate are unlikely to affect 95% of small businesses, as they are not subject to corporate tax.
This results in strikingly different attitudes towards taxation, and not a little frustration among small business owners regarding the tax cuts corporations received under former President Donald Trump.
Small businesses are faced with different challenges
It shouldn't surprise anyone that there is a difference in attitudes. Is it possible to think that Amazon and family-run pizza shops face the same tax issues? No. However, those who want to keep large businesses from paying more taxes want you to think so. We all love the family-run pizza place and want it to prosper - while the public looks suspiciously at the tax shenanigans by large corporations.
Since 2017, Small Business for America's Future surveyed small-business owners to find out their views on taxes. These responses were consistent and clear: Small business owners feel that large corporations don’t pay enough, they feel the lawmakers favor large corporations, and they want a tax code to equalize the playing field.
Large companies are favored by the tax code
Survey results show that 72% of small-business owners believe the current tax code favors large companies.
>75% don't believe large corporations pay enough taxes.
>76% of respondents agree that corporations exploit loopholes to avoid paying tax.
>60% of the population supports partially repealing the 40% corporate tax cuts granted to large corporations in 2017 to fund infrastructure investment.
>76% of small-business owners believe infrastructure investment will increase the economy. 72% claim it will benefit small businesses.
>51% of small-business owners believe that raising taxes on Americans earning more than $400,000 per year would not hurt small businesses.
The delta variant is a major obstacle to our economic recovery. Government programs such as the Paycheck Safety Program, which was designed to assist small businesses during the pandemic, expire. It is, therefore, more important than ever for our legislators to invest in our long-term strength and health. This is the chance to make that happen with the president's proposal to invest in infrastructure.