Lunch Bucket Joe tries to portray his tax increases as socking only the rich. But Main Street is going to be harmed via several of his proposals, and in some ways worse than wealthy individuals and large corporations that can better absorb the violence of his tax hikes.
According to Fox Business:
“Biden has proposed raising the corporate tax rate to 28% from 21%, which would affect roughly 1 million small businesses organized as corporations, according to the conservative Job Creators Network advocacy group.
“But he is also considering raising the personal income tax rates on individuals and households earning more than $400,000, which will hit some small businesses organized as ‘pass-through’ entities. This proposal is expected to be included in the president’s next piece of recovery legislation to be detailed later this month.
“About 90% of small businesses are organized as pass-throughs, according to the National Federation of Independent Business, and 75% are organized as unincorporated pass-through entities.
“Owners of unincorporated pass-through entities report business income on their personal taxes and are therefore not subject to the corporate tax rate.
“And some pass-through entities may be hurt if the president revokes a 20% deduction for pass-through income. Known as the qualified business income deduction, it allows eligible taxpayers to deduct up to 20 percent of their qualified business income from their taxable income.”