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Politics White House Fights GOP’s Tax Attack With Small-Business Outreach

18:55  13 april  2021
18:55  13 april  2021 Source:   bloomberg.com

No Repeal of the $170 Billion Tax Break for Billionaires and No Change in Minimum Wage: Why Democrats Can't Keep Their Promises in the Relief Bill

  No Repeal of the $170 Billion Tax Break for Billionaires and No Change in Minimum Wage: Why Democrats Can't Keep Their Promises in the Relief Bill Here's why the Democrats' $1.9 trillion relief bill doesn't repeal tax breaks for the richest and doesn't include a $15 minimum wage hike.But it’s also notable what won’t make it in the massive bill. The $15 minimum wage increase is now on the chopping block after the Senate parliamentarian ruled it fell outside the bill’s budgetary confines. Senate Democrats nixed an alternative plan to raise taxes on corporations that don’t pay employees a living wages to ensure the bill reaches President Biden’s desk before unemployment benefits lapse March 14.

(Bloomberg) -- The White House plans to push back against Republican criticism of President Joe Biden’s infrastructure-and-tax plan with an event Tuesday highlighting benefits for smaller businesses.

a person that is standing in the grass: The White House in Washington, D.C. © Photographer: Stefani Reynolds/Bloomberg The White House in Washington, D.C.

The virtual event with thousands of small-business owners late Tuesday afternoon represents the latest step in a coordinated public-relations campaign to sell the administration’s “American Jobs Plan.”

Top administration aides plan to highlight the way the president’s plan would boost federal contracting opportunities for small companies, help minority-owned manufacturing firms access capital and create a network of small-business incubators across the country -- one of Biden’s campaign pledges.

Democrats offer competing tax ideas on Biden infrastructure

  Democrats offer competing tax ideas on Biden infrastructure Congressional Democrats are debating how they should raise taxes to finance President Biden's infrastructure plan, with minor disagreements emerging in the early stages.The White House has proposed raising the corporate tax rate from 21 percent to 28 percent and increasing taxes on U.S. companies' foreign earnings. But some Democratic lawmakers are pushing back on aspects of the tax proposals, while others have suggested ideas that diverge from the administration's plans. Reaching consensus on taxes will be among the top challenges for Democrats as they work to enact an infrastructure and jobs package in the coming months.

Biden has already made two public speeches on his program, which spans infrastructure to funding for elderly care, paid for with corporate-tax hikes, and on Monday he hosted a bipartisan group of lawmakers to discuss the proposals at the Oval Office.

At that meeting, GOP Senator Deb Fischer said she pressed Biden on whether the planned tax hike would make allowances for small and family-owned businesses -- reflecting her party’s broader criticism of the damage higher business levies would do to the economy.

Tax Plan

A White House official argued that the tax hikes aren’t aimed at smaller firms, and that tens of billions of dollars will flow to them as the program aims to ensure those businesses in particular benefit from federal contracting and subcontracting.

What Matters: Taxes will have to go up for someone

  What Matters: Taxes will have to go up for someone The US is entering a weird place where even some big money execs -- the kinds of people who usually build businesses by doing everything they can to avoid paying federal taxes -- agree the government needs to raise funds to keep things rolling. © shutterstock Now, like a family with a calculator at the kitchen table going over its bills, American policymakers and business leaders are slowly coming around to the most obvious mathematical truth: Companies will need to shell out funds if they want the government to invest in President Joe Biden's goal of bringing the nation's infrastructure up to scratch.

The official said that Biden’s proposed corporate tax hikes are very targeted toward large and multinational enterprises, in an effort to crack down on loopholes that benefit them -- not the average neighborhood coffee shop.

White House aides argue the infrastructure-focused spending plan will also broadly help small businesses by boosting broadband access in rural areas, improving roads and highways for the transit of goods and supporting the domestic supply chain.

The White House is defining small businesses as any company with 500 or fewer employees, with the goal of helping businesses that employ as few as a handful of people.

As part of the American Jobs Plan, the president is also asking Congress to fund a new financing program for small manufacturers and create a new office to monitor industrial capacity.

Republicans, back in Washington after a two-week congressional recess, are joining business groups in refining their criticisms of the Biden proposal, going beyond its size. GOP lawmakers say the plan incorporates Democratic social-policy priorities that go way beyond infrastructure. The Business Roundtable is also starting a multimillion-dollar campaign aimed at stopping tax increases.

Read More: Business Roundtable Starts Major Ad Campaign Opposing Tax Hikes

Top Biden administration aides have been doing outreach to small businesses, business groups and leaders dating back to the presidential transition.

Many Democrats expect that an infrastructure bill, if successful, would narrowly pass the Senate, with the GOP united in opposition.

For more articles like this, please visit us at bloomberg.com

©2021 Bloomberg L.P.

Why some of the most liberal Democrats in Congress want to bring back a tax break for the rich .
Democrats want to raise taxes. So why are they debating cutting them for some well-off taxpayers?In their 2017 tax bill, Republicans partially closed a tax loophole that mainly affected higher-income people in high-tax areas — i.e., relatively well-off people in blue states. They capped the state and local tax deduction (SALT) people can take when calculating their federal income tax at $10,000. People can still deduct state and local taxes from their federal tax bill, but only up to that point.

usr: 4
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