Washington Wire

Ditch the IRA

August 11, 2022|

The Main Street business community today sent a letter to lawmakers with a simple message: many of the proposed tax policies in the Inflation Reduction Act would harm individually and family-owned businesses and should be rejected.

The letter was signed by more than 70 trade associations representing millions of Main Street businesses from every corner of the country and every sector of the economy, including NFIB, the National Restaurant Association, the Associated Builders

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“Getting Less for More”

August 5, 2022|

CBS News is out with a great interview that highlights the growing concerns of small business owners as they grapple with rising inflation, worker shortages, supply chain disruptions, and the looming threat of an economic recession.
Here’s how Jessica Johnson-Cope, the owner of a small business that provides security and protection services, summed up the current environment:
With inflation, we’re getting less for more. We have an armored car business, so fuel costs

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Recession, Inflation, and the Small Business Sector

July 29, 2022|

Want to understand what’s happening in the economy?  Look to inflation-adjusted data.  Wage levels and company revenues are reported in nominal terms, while the GDP estimates are adjusted for inflation.  That’s why they appear to be headed in different directions when, in fact, it’s all going south.

It’s also the reason inflation is something to be avoided, and something to be addressed quickly when it does appear.  When you dump trillions of new dollars into the

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Summers on Tax Hikes

July 27, 2022|

Larry Summers has been right on inflation for the past year, but what about his recent comments on tax hikes? Here’s what he told reporters last week:

“I sure wish we could get past this basically ludicrous economic idea that tax increases are inflationary — it’s just not right,” and “The right thing to do is to raise taxes right now to take some of the demand out of the economy.”

S-Corp has argued that tax

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What’s Next for Tax Policy?

July 21, 2022|

Senate Democrats plan to advance a budget reconciliation bill in the coming weeks, but it will not include the $300-400 billion in Main Street tax hikes originally planned.

The decision to scrap the tax provisions – an expansion of the 3.8 percent Net Investment Income Tax and Loss Limitation rules – was made after Senator Joe Manchin presented Democratic leaders with a deal: pass a smaller bill without tax hikes now or continue negotiations into September

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Inflation Hits Highs as Small Business Optimism Hits Lows

July 13, 2022|

Today’s news that inflation hit 9.1 percent in June comes a day after NFIB released it latest small business report, and the results are grim. Small business sentiment is down for the sixth straight month and hit its lowest level in nearly five decades. It’s yet another reminder that there could not be a worse time to raise taxes on American employers.

NFIB’s numbers show that employers continue to be extremely pessimistic about the

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Main Street Opposes Tax Hikes

July 12, 2022|

Today the S Corporation Association joined with more than 200 trade associations to oppose the Senate’s latest efforts to raise taxes on small and family-owned businesses.

The letter was spurred by recent reports that lawmakers are considering a tax increase specifically targeting Main Street businesses: an expansion of the 3.8 percent Net Investment Income Tax (NIIT) to include the incomes of S corporations and partnerships where the owners actively manage the business.

The letter was signed by

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Main Street Gets Squeezed

June 24, 2022|

If the Senate needs more reasons to drop the toxic Build Back Better Act, here’s a good one – job creation on Main Street has been negative over the past four months.  A recent piece in the Wall Street Journal detailed the struggles small employers face in the current job market:

Head counts at companies with fewer than 50 employees declined in three of the past four months, according to ADP payroll data, even as

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