Just 3 percent of small businesses would see tax hike under Biden's $3. 5 trillion spending plan

WASHINGTON, Aug 19 - Just three percent of the nation's small businesses would see tax increase under President Joe Biden's plan to tax the nation's highest earners to help fund a $3.5 trillion spending bill, a new U.S. Treasury analysis shows.

The Biden administration is expected to promote the findings of the report in a Pennsylvania small business meeting on Thursday. Democrats in Washington hope to overcome intra-party squabbles to pass the President's signature spending plans, aimed at climate initiatives and expanding the social safety net.

The White House has sought to harness the political popularity of some 30 million small businesses and their agitation over the current corporate tax structure, which small businesses view as generous to bigger, billion-dollar corporations like Walmart Inc. and Amazon.com Inc. over Main Street businesses.

Biden's $3.5 trillion spending plan would fund climate initiatives, paid leave, child care, education and health care by, among other things, raising the top marginal individual income tax rate to 39.6 percent.

That rate would affect married individuals with taxable income of more than $452,700 and single couples filing jointly with incomes over $509,300, according to White House figures.

The Treasury analysis, which focused exclusively on small businesses filing as S-corporations, partnerships and individual income tax returns, found that less than 3% of small business owners fall into the top tax brackets.