In response to recent media reports on congressional efforts to raise taxes on small businesses to support increased federal spending, NPC and dozens of national trade organizations issued a letter this week to House and Senate leaders opposing any new taxes.
“The NPC Board was very clear on this during our annual meeting in February. Despite Congressional efforts to resurrect previous failures to increase taxes, we aren’t wavering from our members’ strong common-sense statement,” said RJ Andrus, NPC VP of Legislative Affairs.
Arguing that the tax hikes under consideration would fall entirely on small businesses, the organizations representing millions of businesses and employing tens of millions of American workers urged congressional leaders not to raise taxes on small, individually, and family-owned businesses as part of any effort to enact a reconciliation bill this year.
Two tax increase efforts under scrutiny include: 1) expanding the 3.8 percent Net Investment Income Tax (NIIT) to individuals and families who actively participate in their business; and 2) limiting the ability of small, individually, and family-owned businesses to fully deduct their losses during an economic downturn by expanding and extending the so-called “excess business loss limitation” for “noncorporate taxpayers.” “Combined, these would increase revenues by more than $400 billion over ten years, shouldered entirely on the backs of small, individually, and family-owned businesses,” wrote the group.
This effort continues NPC’s stance against paying for increased federal spending on the backs of America’s family farms. During the NPC 2020 Summer Meeting, NPC formally went on record against undermining important tax provisions like changing in the estate tax and eliminating stepped-up basis.