Statement from the MSEC Opposing Inflationary Tax Hikes on Individually & Family Owned Businesses

Main Street Opposes Inflationary Tax Hikes on Individually & Family-Owned Businesses

“It’s the kind of thing you’d do to start a recession, not prevent one.”

WASHINGTON, D.C. (July 11, 2022) – The Main Street Employers Coalition—comprised of national trade groups representing individually and family-owned businesses employing millions of Americans in every state and district—released the following statement on a Democratic plan to raise tax rates on individually and family-owned businesses:

“We oppose Senate Democrats’ double-digit tax hike on the active business income of America’s individually & family-owned businesses,” said Chris Smith, Executive Director of the Main Street Employers Coalition. “These businesses already pay the highest effective tax rates, as well as payroll and self-employment taxes to Medicare.  This tax rate increase would only make that disparity worse, add to inflation, and hasten a possible recession.  It’s yet another ‘tax the rich’ smokescreen that ends up hitting Main Street instead.”

“Raising rates on small and family-owned businesses is the kind of thing you’d do to start a recession, not prevent one.  Voters understand that if companies have to pay more in taxes, those costs will be passed on to consumers in the form of higher prices.  Instead, we need to do everything we can to help businesses get back on their feet so they can get Americans back to work and the economy moving in the right direction.”