NFIB to urge Congress to vote down small business tax

NFIB to urge Congress to vote down small business tax

The National Federation of Independent Business NFIB will launch a nationwide ad campaign next week, urging members of Congress to vote down small business tax hikes.

The campaign of the NFIB will consist of a video ad called Backbone, which lays out the importance of small businesses in the U.S. for the economy and local communities. The ads will be shown in Arizona, Florida, North Carolina, Montana, and West Virginia beginning Monday and will focus on television, according to the group.

NFIB president Brad Close said in a statement shared with FOX Business that small businesses are the backbone of the economy. Some members of Congress are supporting new taxes on small businesses in order to pay for increased government spending, while misleadingly characterizing them as tax loopholes because of the pandemic and government shutdowns. The campaign will focus on a potential 3.8% tax on many small businesses that have previously been floated and backed by Democrats.

The NFIB labeled the small business surtax, which would increase tax rates on pass-through income for individuals earning more than $400,000 per year. Since most small businesses are classified as pass-through entities, such a tax would increase taxes for many small business owners.

The tax increase in the Build Back Better Act would boost federal tax revenue by $200 billion, according to Democrats. The NFIB noted that the Inflation Reduction Act, Democrats' revived reconciliation package, didn't include the provision, but it warned that members of Congress may add it in as an amendment or in a different bill.

Some in Washington want to increase government spending, according to the NFIB's ads. They are calling small businesses tax loopholes because they are paying for it. Tell Congress, don't add new taxes on small businesses. Senate Majority Leader Chuck Schumer, D-N.Y., said that a floor vote on the Inflation Reduction Act would take place soon. The process will involve a series of votes on amendments offered by both Republicans and Democrats.

An NFIB spokeswoman declined to elaborate on how much the group would spend on the ads, since the campaign is ongoing, but said the figure would be large. The NFIB plans to expand the campaign beyond the initial five states where the ad will be played, a factor that could increase the overall price tag, according to the spokesperson.