ICBA and other groups said recent proposals to raise the top individual income tax rate to 40% would disproportionately harm hundreds of thousands of pass-through businesses organized as S corporations, partnerships, and sole proprietorships.
Details: In a joint letter to House Ways and Means Committee Chairman Jason Smith (R-Mo.) and Senate Finance Committee Chairman Mike Crapo (R-Iowa), ICBA and other groups encouraged them to stand strong against any effort to increase income tax rates. ICBA and the other groups noted:
Pass-throughs comprise over 95% of all businesses and employ 62% of the nation’s workforce.
Most pass-through business income is taxed at the top rates, so raising these rates would harm Main Street businesses engaged in nearly every aspect of the economy.
They are responsible for employing millions of Americans, driving investment, and supporting local economies nationwide.
The so-called “millionaire tax” in question–which actually kicks in at income around $620,000–would saddle them with a tax hike that offsets about half the tax benefit of extending the Section 199A deduction.
