Statement on House Tax Plan – “Its Impact Cannot Be Overstated”

Today, the Main Street Employers Coalition issued the following statement:

The Main Street Employers Coalition strongly opposes the House Democratic tax plan.  The plan is nothing short of a declaration of war on individually and family owned businesses, and is the most anti-Main Street program ever proposed.

The tax hike would tilt the playing field even further in favor of large corporations on Wall Street and against Main Street America by increasing the tax rate on public corporations by just 5.5 percentage points, compared to the 16.8 percentage point increase that applies to individually- and family-owned businesses.  Worse, it would apply these higher rates to a broader tax base.  The impact cannot be overstated.

The individually- and family-owned businesses facing this draconian tax increase represent about half of all pass-through income, and they employ tens of millions of workers. Taxing these businesses while they are still struggling to recover from the COVID-19 pandemic goes too far. Raising their taxes will directly impact inflation and the cost of living, because if companies have to pay more in taxes, those costs will be passed on to consumers in higher prices & make it harder to raise wages for its employees.

Instead, we should be doing everything we can to help these businesses get back on their feet, so that they can get Americans back to work to keep the economy recovering and moving in the right direction.  The Democratic tax plan goes in the opposite direction.