PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Raising Taxes on U.S. Companies – Big or Small – Works Against “Made in America”

By at 31 March, 2021, 1:30 pm

Infrastructure Package Tax Hikes Would Harm Competitiveness, and Undermine Recovery from the Pandemic

NEWS

For Immediate Release

Washington, D.C. – President Joe Biden unveils a $2 trillion infrastructure-spending package today, and while rebuilding and modernizing infrastructure is important to the competitiveness and productivity of America’s small business sector, its emphasis on raising taxes during the shaky economy and pandemic would seriously jeopardize the emerging recovery and private sector investment needed to maintain U.S. competitiveness, quality job growth and new business creation, according to the Small Business & Entrepreneurship Council (SBE Council).

“Modern infrastructure and access to fast broadband are incredibly important to small businesses and the growth of entrepreneurship across America. We all agree that these must remain a priority. However, the encouraging economic signs would quickly go south if capital needed by private businesses, and being deployed to compete safely and survive during what we hope will be a post-pandemic economy, is now diverted through these proposed tax increases. The President refers to his tax-increase initiative as the Made in America Tax Plan, but fewer things will be made and invested in across the U.S. if taxes are raised on American companies,” said SBE Council president & CEO Karen Kerrigan.

Raising taxes on corporations may have some appeal with the public, but SBE Council will remind Biden Administration officials that most C-corps are small businesses – 84.8 percent having fewer than 20 employees. In addition, investments made by larger corporations benefit millions of small businesses as suppliers as well as local communities and jobs. Moreover, it is especially vital now that the U.S. stay tax competitive in the global economy with big actors such as China pressing the accelerator on investment and innovation.

SBE chief economist Raymond J. Keating noted, “Tax increases on entrepreneurs and businesses are surefire ways to undermine economic recovery and growth. The U.S. faces a daunting challenge in getting entrepreneurship, private investment and our economy back on track given the pandemic. Reducing the returns on entrepreneurship and investment via tax increases will work against this vital effort.”

CONTACT: 

Karen Kerrigan, kkerrigan@sbecouncil.org

Raymond Keating, rkeating@sbecouncil.org

 SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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