In the face of a stiffer opposition on Biden’s latest proposal to hike corporate taxes to 28 per cent from a previous 21 per cent from large national trade groups such as the US Chamber of Commerce alongside Business Roundtable, White House had issued a statement late on Friday saying that less than 3 per cent of roughly 30 million small-businesses in the United States might face off a tax hike under the latest corporate tax overhaul docket from the US President Joe Biden.
In point of fact, latest analysis report from the White House comes over the heels of a Biden Administration move to step up support for its jobs and infrastructure plan, according to which the White House was seeking to hike corporate tax rate to 28 per cent from a prior 21 per cent on top-tier corporations likes of Amazon.com Inc.
alongside Walmart and others, however, Biden’s latest proposal to support the economy with a nearly $2 billion job and infrastructure plan had met with a sheer gridlock amid a deeply divided US Congress.
Less than 3% small business owners would face tax hike under Biden plan
Aside from that, a senior administration official in the White House was quoted saying following the announcement that a proposed hike in corporate taxation to 28 per cent would not impact any kind of small businesses filing taxes as a “passthrough entity” such as LLC or Limited Liability Corporation, while the White House official had also added that almost all small US businesses fell into that aforementioned category which in effect would insulate them from a tax hike.
Dissecting facts from fictions, most US small businesses are passthrough businesses which are not subject to corporate taxes similar to S-corporations and limited liability companies, though it remains dubious whether Biden’s latest proposal to hike corporate taxes to 28 per cent would be able to pass through a deeply divided US Congress with steep opposition from Democratic lawmakers, too.