PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

TippsInsight: Raising Taxes During a Pandemic – The Economic and Political Perils

By at 10 August, 2021, 9:12 pm

In a “sneak peek” on a new survey that will be released August 11, SBE Council president & CEO Karen Kerrigan writes that 83% of small business owners believe elected officials should support tax policies that make it possible to pass on their family business.

Based on the responses of small business owners in the new SBE Council/TechnoMetrica survey, the “STEP Act” – a proposal to eliminate step-up in basis adjustment (when property such as a business is passed on upon death) – works directly against this.

In a Special Evening Edition of TippsInsights, Kerrigan previews the new polling data and notes:

For most small businesses, this pandemic is not over – far from it.

Beyond what the future may bring with regard to additional economic pain from the Delta, Lambda, or future variants, small business owners are still digging out of the mess of the last year and a half. According to a mid-July 2021 Census Bureau “Small Business Pulse Survey,” 32.5% of small businesses say it will still take them 6 months or longer to return to normal levels of operation.

Not surprisingly, more than a quarter (25.2%) still report “a large negative effect” from the Coronavirus pandemic, which is more widespread in certain sectors such as the accommodations and food services sector (54.7% are still struggling).

So why would lawmakers and elected officials want to pile on and add more uncertainty and costs with higher taxes and burdensome regulation on these small businesses?

Kerrigan highlights the difficulties small business owners report they will face under higher taxes, including higher capital gains taxes, and if step-up is eliminated, and the difficulties Democrats may face if they move forward with this economically destructive proposal to help fund their massive $3.5 trillion spending bill.

Survey results will be posted on SBE Council’s website – www.sbecouncil.org – on August 11, 11:00 a.m. ET.

 

News and Media Releases