Congress has now begun working on the details of the $3.5 trillion reconciliation package that addresses issues like climate change, federal paid leave, Medicare expansion, childcare assistance, free community college and much more. To pay for such a large expansion of the federal government, Congressional Democrats are considering numerous tax changes that would impact your agency and your clients. Tax increases currently “on the table” include: a significant increase in the corporate tax rate, raising the top individual tax rate, nearly doubling the capital gains tax rate, potential elimination of “stepped up” basis, and modification/elimination of the Section 199A 20% small business tax deduction for pass-throughs.
The House Ways & Means Committee is beginning to mark up the bill TODAY and will continue into next week. Agency owners in New York are being asked to call the office of Representative Tom Suozzi, who sits on the Ways & Means Committee, regardless of whether he is your representative. Please convey the talking points below. Calls are not limited to agency owners. This issue impacts employees and family members as well. Please encourage them to place calls.
Representative Tom Suozzi
DC Office: (202) 225-3335
- Please oppose tax increases on small business that the Ways & Means Committee is considering to “pay for” the $3.5 trillion reconciliation package.
- Increasing tax rates on pass-throughs and C corporations, capping or eliminating the small business tax deduction, increasing the capital gains tax and eliminating stepped-up basis would deliver a crushing blow to main street businesses, particularly when communities are recovering from the pandemic.
- Altogether, these taxes pose a triple threat to the ability of businesses to survive by raising taxes on main street businesses when they operate, when they are sold, and when they are passed on to the next generation.