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Joe Biden’s Plans for America’s Small Businesses

smallIf Joe Biden wins the election next week and is sworn in as President, he will seek to change the way that small businesses taxation and regulation works. Former Vice President Biden and Senator Harris have both paid lip service to helping small businesses succeed but their plans tell a different story.

Biden tax plan

Simply put, the full Biden tax plan if implemented fully has the potential to bury small businesses. During this campaign, the Biden/Harris ticket’s rhetoric on taxes has changed from repealing all of Trump tax cuts to repealing just some of them for the “wealthy”. The problem is that Democrats have trouble distinguishing wealthy individuals from healthy small businesses. Many small businesses, among them S-corps, LLCs, and sole proprietors are called “pass-through” businesses, meaning their businesses taxes flow through and are reported on a business owner’s individual income tax form. Most of these small businesses were given a new 20% small business deduction, lower rates, and better capital expensing laws under the 2017 Tax Cuts and Jobs Act. Some of these tax changes were paid for by decreasing the number or amount of business tax deductions. Democrats have threatened to repeal the changes that lowered taxes if they sweep Congress and the Presidency in the upcoming elections, but would not restore many of the deductions, this means businesses would face even higher effective tax rates than before the tax cuts. In addition to paying higher income and business tax rates, small businesses will also be subject to higher death taxes and more regulations. Political drama has kept taxes from becoming a top tier issue, but President Biden is proposing the most radical tax plan on record for Democrats – they hope to raise taxes by over $3 trillion total on the American people.

Regulations

Small businesses have thrived in an environment of low regulations and taxes. Last year, before the virus, small businesses set records on expansion and hiring. Small business confidence reached record highs on the NFIB small business survey before the virus hit. Polls show that most voters given this stellar record still trust President Trump over Biden to rebuild the economy. Regulations have been slashed under the Trump administration and red tape has been cut giving businesses the confidence to hire more workers and take more risks. According to the White House, for every new regulation put in place nearly 8 have been repealed during this administration. If Joe Biden is elected, we will likely see a much more burdensome regulatory environment for America’s small businesses.

The economy and small businesses

Independent analyses from both left and right leaning think tanks show that Biden’s plan would shrink the economy, and lower after-tax income on almost every group of Americans. Don’t expect the media to report on the economic impact of Biden’s taxes before the election though. These numbers have been publicly available for months, but the severity of the potential Biden tax increases and their effect on the economy has not seen the press it deserves. During debate and passage of the Trump tax cuts, media reported that the Trump tax cuts only helped the wealthy. After many independent analysis were conducted, even liberal outlets were forced to acknowledge that the Trump tax cuts helped middle class families. In addition to cutting the corporate and individual rates, the Trump tax cuts lowered marginal rates on the middle class, doubled the standard deduction, and increased the child tax credit. These undeniable facts led the New York Times to report “Most people got a tax cut” the Washington Post to report “most Americans received a tax cut” Jake Tapper from CNN to report “the facts are, most Americans got a tax cut” and H&R block to confirm “the vast majority of people did get a tax cut.”

Biden tax hikes on small businesses and corporations would have a negative affect on jobs and the economy as a whole. Taken together, the Biden tax hikes, increase in regulations, and as a result poorer economy overall would spell trouble for many of America’s small businesses.

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Rik
1 month ago

Small businesses are the backbone of this country! Biden’s Tax Increases would destroy a majority of small businesses and thus cripple this economy beyond belief! I guess the Progressively Communist Democrats REALLY do want to destroy America!

Linda K
1 month ago

I think the US, under president Trump, has thrown a very large wrench into the plans the globalists have for “their” world. Panic has set in and as soon as they have control, they will not waste any time implementing their plan, which includes destroying our country and way of life. We can’t let that happen.

Chuck
1 month ago

The power to tax is power to destroy. The Democrats love to destroy.

Ken
1 month ago

If this is coupled with a $15 federal minimum wage, there will be no small businesses that can survive. Perhaps some of the fast food restaurants will make it because they can decrease the number of employees with automation, but if the cost of that is prohibitive, thus putting them they will be
out of business as well.

David Spade
1 month ago

There will not incentives offered to small businesses under the plans proposed by Biden. There will actually be disincentives for owners to grow their businesses with the taxes proposed in the Democrat’s platform. In addition to their proposals to increase minimum wages, there is even further evidence that he will break the backs of small business owners. Costly regulations is not completely quantifiable at this point, but that cost will also hurt owners of smaller companies. It would be a dark cloud over the heads of owners who will be coming off issues related to the pandemic. Remember: many states… Read more »

Tom
1 month ago

Suddenly Biden is out going to visit States but for the entire past 8 weeks he went nowhere. Why? The reason is the Press gave him ALL of the questions to the debates and he was simply trying to memorize the answers. The debates are over and he blew it big time.

Jason Brumfield
1 month ago

Biden Dead Head CCP puppets, and Russian Communists have bought and Paid for this Idiot and his co-harts, Soros, Killery, Obumers, Maoists Children of the CCP. Shameful and disgusting piece of DumbOcrate Communists Party.

Paul W
1 month ago

If china-joe is elected, and even more so if the dims control Congress, the country is doomed. That is NOT hyperbole. biden will ultimately be hit with 25A and the most leftist member of the Senate will become POTUS. God help us if that corrupt dimwit wins!

Carl Holst
1 month ago

Trump the only choice!

Doodlebug
1 month ago

If Biden wins and implements his tax program my son will have to close the doors on his BBQ restaurant. No, ifs, ands, or buts about it. They struggle as it is to make payroll, city, state and income taxes. With covid their walk in business is down at least 40% and catering business is down 80% (all weddings, corporate functions, and even funerals cancelled). So yeah, let’s beat up the little guy and make sure the Walmarts and McDonalds survive…

Donald G Nichols
1 month ago

If Biden wins the election because the poor which will control the election will receive more free stuff.I do not think he will last 4 years as president.What ever happened to our Work ethic? I guess it went to China and other countries.

James
1 month ago

Their eyes are always on the prize (socialism). Democrats are telling voters up front that they’re going to raise taxes. THEY AREN’T KIDDING! Democrats don’t care if they destroy capitalism – it’s in their long-range plan anyway! Small businesses, big businesses, who cares? Not only are they going to pay more taxes, their taxes will pay for more regulations and more worthless government programs etc. Combined with the weaponized Wuhan Virus democrats will destroy the rebounding American economy.

Kim
1 month ago

Unless the democrats implement policies that encourage businesses to open, to expand, and to hire employees, the economy will fail. People and companies buying and selling goods and services are responsible for 2/3 of the GDP. A busy economy keeps people employed. But this doesn’t register with the democrats; they’re not interested in prosperity. They want more money from taxes so they can dictate where the funds will be spent. And where is that? Look at any of those socialist programs they’ve been talking about for years, and there’s your answer. Compare the Obama/Biden economy, after the “recovery” (2009), to… Read more »

John
1 month ago

If that happens, I’ll just close my doors, release all my employees, and retire. Let’s see if the Dumbocrats will hire them or just increase more taxes to give deadbeats more money.

GKP
1 month ago

It is very simple to know when Joe Dementia Biden is lying// HIS lips are actually moving// He will sell the White House if given a chance at the expense of the American people// Wake up or this buffoon and his sleaze bag mate (Harris) will ruin our country// Its easy to understand//

Patriot Will
1 month ago

If the Socialist Democrats keep their destructive meddling to a minimum, the free enterprise system usually encourages hard work and fair competition. Consequently, small businesses are usually allowed to either flourish or suffer on their own. However, the Democrats often interfere in the health of our economy by over-regulating and over-taxing. When Biden brags that he has a plan for businesses, he is actually broadcasting his incompetence and stupidity.

Wayne Peterkin
1 month ago

Economics 101: Every single dollar taken from any business in taxes and regulations is a dollar less that business has to spend on jobs, wages, and growth. That is so simple and so true that even a democrat should be able to understand it, but obviously they either can’t or refuse to do so. In general, no matter what your earnings might be, the left believes it all really belongs to the government and you should be grateful they let you keep any of it for your own use. It’s interesting that most of the professional politicians on the left… Read more »

Teresa Islas
1 month ago

Just another reason I’m not voting for Joe.

Glenn Lego
1 month ago

I noticed that another small business has closed permanently largely due to the Covid lockdown mandates installed by Democrat governor Pritzker of Illinois. The business is The Spot Cafe on 7th street in Rockford Illinois. I don’t believe that any Democrats like small business.

Stephen Russell
1 month ago

Has none but Tax & regulate to death to Chap 7 small business day 1

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