Fooled again

Wilmington NC

Description

Despite promises not to tax small businesses, especially those that are minority owned, President Biden’s new group of taxes will hit smaller firms, one of the nation’s leading anti-tax groups warned Tuesday. Joe Biden wearing a suit and tie looking at the camera: President Joe Biden's promises not to tax small businesses is being questioned.© Evan Vucci/AP President Joe Biden's promises not to tax small businesses is being questioned. Grover Norquist’s Americans for Tax Reform highlighted Biden’s campaign promises to protect small businesses in its analysis that the growing IRS will be delivering bigger bills to Main Street companies. “During his campaign, President Joe Biden promised the American people that he would not raise taxes on small businesses. Now safely in office, he is violating that promise. His tax plan imposes direct tax increases on small businesses,” said ATR. In a fact sheet and video, ATR said the president’s plan to raise the top marginal income tax rate to 39.6% will include small businesses, sole proprietorships, LLCs, partnerships and S-corporations. And his corporate income tax rate hike to 28% will touch one million small businesses across the country organized as corporations. Many are tiny operations. What’s more, ATR said that Biden has also repeatedly talked about a second type of death tax on small businesses. During the campaign he often talked about eliminating “step-up in basis.” ATR called that “a devastating tax increase on small businesses.” ATR cited tax lawyer Robert W. Wood who wrote in Forbes last year, "Biden's proposal would tax an asset's unrealized appreciation at transfer. You mean Junior gets taxed whether or not he sells the business? Essentially, yes. The idea that you could build up your small business and escape death tax and income tax to pass it to your kids is on the chopping block. Biden would levy a tax on unrealized appreciation of assets passed on at death. By taxing the unrealized gain at death, heirs would get hit at the transfer, regardless of whether they sell the asset."