As Congress continues work on a Reconciliation bill, two revenue raisers under consideration would increase taxes solely on small businesses. Specifically, the provision would expand the Net Investment Income Tax (NIIT) and limit full deductions for losses by expanding and extending the “excess business loss limitation” for “noncorporate taxpayers.”
This represents an 11 percent increase in rates imposed on family-owned businesses, raising taxes during swings of profitability and limiting means of subsidizing for losses in the next downturn.
On July 11, nearly 200 associations representing well over 100,000 small businesses sent a letter to Congress urging Members not to raise taxes on small, individually, and family-owned businesses as part of any effort to pass a budget Reconciliation bill this year. NSBA is leading the effort for small business on this issue, but we need real entrepreneurial leaders, like yourself, to tell your congressional representatives to stop these harmful tax increases on small business
Please take a few moments today to contact your lawmakers and urge them not to increase taxes for small businesses and commit to continuing improvements of our cumbersome tax code.