Recently, the House passed the Build Back Better Act
220-213. By passing the Build Back Better Act
, the U.S. House has proposed saddling small businesses with significant tax increases, inflexible mandates, and unaffordable penalties.
NFIB opposes the Build Back Better Act as it increases taxes, imposes new mandates, and increases penalties on small business owners:
- Small Business Surtax - The bill specifically targets small business owners organized as pass-through entities with a new Small Business Surtax. A business owner with income over $400,000 ($500,000 joint return) would be subject to the small business surtax of 3.8%. Worse, the surtax is not indexed to inflation. So, more and more small businesses will pay the surtax as time goes by.
- Federal Paid Family and Medical Leave Program - The bill creates a four-week federal paid family and medical leave program beginning in 2024. This inflexible program only requires employees to self-attest that they provided seven days notice to take up to four weeks of leave. Half of small business owners cannot fill open positions. This program could exacerbate the workforce shortage.
- Massive New Small Business Labor Fines - The bill increases maximum minimum wage and overtime violation fines from $1,100 to $20,740 per violation and the maximum tipped credit violation would increase from $1,100 to $11,620. These fines will crush small businesses that lack the resources and lawyers of large companies.
It is critical that you tell your Senators to say no to the Small Business Surtax, new paid family and medical leave program, and massive new labor fines.
Please urge your Senators to oppose these anti-small business proposals.