Ways and Means Republicans held a panel discussion on the Build Back Better (BBB) Act’s impact on individually and family-owned businesses yesterday morning, and just in time.  Main Street is panicked over the possibility that the House-passed bill will be signed into law, and new numbers from EY demonstrate why.

The BBB would raise taxes on businesses organized as S corporations, partnerships, and sole proprietorships by more than $500 billion over ten years.

The BBB is advertised as going after only the very wealthy, but 81 percent of its individual tax …

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The House-passed Build Back Better Act represents an existential threat to many S corporations.  Not only would the bill raise their rates to the highest in the OECD, it would impose limitations to deducting their active business losses that are worse than those that apply to passive losses.  If your goal is to force all large pass-through businesses into the C corporation model, this is your bill.

On the rate front, the BBB makes no attempt to balance out the tax treatment of pass-through businesses with C corporations.  The bill’s new surtax and expanded NIIT, combined with the pending expiration …

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The Biden Administration has attempted to sell its $2 trillion Build Back Better plan, including $540 billion in tax hikes on family businesses, as popular with voters.  That’s simply not true.

An op-ed published yesterday by David Winston in Roll Call makes this clear.  The results of his firm’s latest survey reveal a glaring disconnect between the goals of Build Back Better and the priorities of everyday Americans. As Winston writes:

Political leaders have to address the priorities of the electorate. It’s becoming increasingly clear that Biden is not just off message with Build Back Better, he’s off policy priorities; …

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Ken Kies is out with an excellent piece today that breaks down how bad of a deal the House-passed Build Back Better Act is for pass-through businesses. As the former Joint Committee on Taxation head explains, even though this latest bill abandons efforts to repeal the 199A deduction, the tax hikes that remain create an “extreme disparate treatment” for pass-throughs compared to C corporations.

Kies focuses on the House bill’s new surtaxes (5 percent on pass-through income over $10 million, and 8 percent over $25 million) and the expansion of the 3.8 percent Net Investment Income Tax. Together, these …

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