Hassan set to oppose new tax on small business investment
According to the Federal Reserve, the COVID-19 pandemic and the economic uproar that followed in 2020 resulted in the permanent closure of about 200,000 more small businesses than what was historically closed in a year typical.
The federal government has certainly done its part to help small businesses survive. Through the Paycheque Protection Plan and other bipartisan initiatives, Washington has kept millions of small businesses afloat and ensured that millions of Americans continue to collect paychecks.
Sadly, some of the more radical majority party members in Congress are pushing forward a proposal that would attack the same small businesses, just as many are starting to turn the corner. They want to insert a new small business investment tax into America’s $ 3.5 trillion family plan. This tax increase would target “carried interest” and make private investment in small businesses much less attractive. It will slow economic growth, cost jobs and shut down businesses.
As a member of the US Senate Finance Committee, Maggie Hassan will have an important voice on the end result of this tax increase legislation, HR1068 in the House and S.1598 in the Senate. She must put the interests of New Hampshire small business owners and their employees ahead of Washington politicians and their never-ending quest for more tax revenue.
There is no doubt that this legislation would be disastrous for the small business climate in America. In a recent study, the US Chamber of Commerce argues that this tax increase would cost our economy 4.9 million jobs over the next five years by reducing private investment.
Interestingly, the House also found that raising taxes would actually reduce tax revenues for government at all levels; federal, state and local. Specifically, the study found a loss of revenue of $ 96 billion for all three levels of government over the same five years.
Finally, the Chamber shows that state retirement programs would lose $ 3 billion a year in public retirement savings. This is because public pension funds often depend on the types of investments that this tax increase would penalize. In fact, the New Hampshire state retirement system has invested $ 300 million in funds built around these types of investments over the past decade.
Hassan must consider the firefighters, police and retired Granite State teachers when she votes on this tax increase.
And these are rosy scenarios. The House study was conducted and released before a new Bloomberg analysis showed the House version of this tax hike is even tougher and more restrictive on small business investment than it does. never thought so before. According to analysts they spoke to, the legislation amounts to a 98% tax hike on those investments.
After the economic downturn created by the COVID-19 pandemic and the resulting closures, the federal government has taken swift action to ensure that small businesses can survive and retain their employees. Yes, mistakes were made and undoubtedly too much money was spent. But Washington has shown, if only for a brief moment, that it can come together to act boldly in the best interests of the American people.
Washington politicians must once again tap into this spirit when considering this anti-business and job-killing tax hike.