NIIT Picking
Tax Notes is out with a new piece that makes the case for expanding the Net Investment Income Tax (NIIT). The article quotes exclusively from individuals who would like to see the tax applied to a broader base of income. Absent is anybody from the business community, which is uniformly opposed to these tax hikes.
Instead, the article comes across as an advocacy piece highlighting people long opposed to the pass-through structure as a whole. The article starts off:
President Biden has proposed addressing a long-perceived flaw with the net investment income tax, but as with his predecessors, political considerations …
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Talking Taxes in a Truck Episode 19: BBB Still “Too Big to Succeed”?
On this special Detroit edition of the Talking Taxes in a Truck podcast, we’re joined by Chris Smith, President of Summit Global Strategies and Executive Director of the Main Street Employers Coalition. Chris and Brian kick off the episode by debating what effect the leaked Supreme Court draft decision will have on the tax policy outlook, and the odds of an overhauled Build Back Better Act being passed in the coming months. They also break down the reconciliation bill’s various tax hikes, and explain how they specifically target family businesses. Finally, Chris shares his favorite DC activity, the origins of …
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More Evidence Tax Hikes Boost Prices
Still more evidence the tax hikes included in the Build Back Better Act would make inflation worse. As noted by Bruce Thompson in the Washington Examiner, a “Working Paper” from the National Bureau of Economic Research shows how tax hikes on businesses result in higher prices for consumers.
The study found that increases in corporate tax rates are passed on to consumers, in part, in the form of higher prices. Here’s the key conclusion from the write-up:
This paper provides evidence that corporate taxes impact retail product prices, and that a significant portion of corporate tax incidence falls on consumers…. …
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Small Business “Boom” is Anything But
At a roundtable event on Thursday, President Biden unveiled a new White House report that touts a “small business boom,” and attributes this success to his administration’s economic strategy.
The timing of the event was a bit odd – the Commerce Department had just released its first quarter GDP estimates, showing the economy shrank by 1.4 percent, and businesses continue to face rampant inflation, job shortages, and supply chain disruptions. So what’s this “boom” the President is bragging about?
In framing its success, the White House report leans heavily on 2021 job figures:
Under the Biden-Harris Administration, small businesses are …
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