ICBA, groups urge Congress to oppose proposed tax hikes

ICBA and other groups called on Congress to oppose the more than $4 trillion in proposed tax increases targeting Main Street businesses in the Biden administration’s new fiscal 2024 budget.

Tax Increases: In a joint letter, ICBA and other members of the Main Street Employers coalition said the new budget would raise top tax rates on more than 1 million small and family-owned businesses by:

• Raising the top rates for pass-through businesses and corporations.

• Increasing and expanding the Net Investment Income Tax.

• Making permanent harmful loss-limitation rules while gutting existing grantor trust rules.

• Nearly doubling the tax rate on capital gains.

• Imposing a new minimum tax on larger family businesses.

Collective Impact: These and previous proposals would combine to raise top marginal tax rates on small and family-owned businesses from 29.6% to 57%, not counting state taxes. Instead, policymakers should make the small and family-owned business deduction permanent, the groups said.