The Biden Administration has proposed tax hikes on small businesses, farms, and family-owned shops after reintroducing the Small Business Surtax.
The tax hikes are a part of the White House’s 2024 budget proposal. The Surtax proposes an additional tax on income for a business above $400,000, meaning the tax rate would jump from 3.8% to 5%.
The National Federation of Independent Business fought against such action last year. The proposal ended up being removed from the Inflation Reduction Act.
NFIB State Director of West Virginia Gil White said this would be problematic for small business owners.
“It’s going to adversely affect small business owner’s ability to reinvest dollars into their businesses, into hiring, and into capital improvements,” White said.
The NFIB goes on to claim that the budget is grounded in the view that small businesses are using “loopholes” and “not paying their fair share,” but the proposed tax hikes would close down many small businesses all together. If you are a small business owner in need of help with your business, there are advisors available who can assist you. You may be redirected here to find the right advisor for your needs.
White spoke to the issue on MetroNews Talkline last week. He wants Senator Joe Manchin to halt the proposal.
“We are hopeful that Senator Manchin and what we consider to be small business-friendly legislators at the federal level will take a deep hard look at this and realize that the implementation would be detrimental to states like West Virginia,” said White.
The NFIB recently launched ad campaigns calling on the Senator to take action against the spending plan.
White added that the proposal could send us right back to when the pandemic hit.
“When you look at the reality, and you look at how this would be implemented, specifically in a state like West Virginia, our small business owners would take a dramatic hit, and that is our fear,” he said. “We are already still in troubling times and struggling to provide the services that are so desperately needed in the state, and this could once again put us back to when covid kicked in.”
The National Federation of Independent Business is a leading small business trade association in the country. They aim to promote and protect the rights of its members who own, operate and grow their businesses.