President Biden’s 2025 budget proposal, released earlier this month, would raise taxes on small businesses, including distributors, according to the National Association of Wholesaler-Distributors (NAW).
The White House’s budget fact sheet notes several ways the Biden administration aims to increase taxes on high-earning individuals and reduce tax breaks for businesses. Those items include setting the corporate tax rate at 28 percent, raising the Inflation Reduction Act’s corporate minimum tax rate on billion-dollar corporations from 15 to 21 percent, ending capital income tax breaks, and providing more funding to the IRS to collect taxes.
“At a time when hardworking Americans are grappling with soaring inflation and a mounting national debt crisis, President Joe Biden’s budget would only exacerbate their struggles by burdening them with trillions in additional taxes, all to further an anti-business agenda,” Eric Hoplin, president and CEO of NAW, said in a statement. “The proposed tax hikes in the president’s budget constitute a clear assault on Main Street businesses and the families they sustain. While President Biden claims he is closing loopholes and raising taxes only on those earning more than $400,000 per year, his budget contains several tax increases on small businesses including wholesaler-distributors across the country. This will threaten the ability of the industry, which already has tight profit margins, to continue adding jobs, expanding benefits to employees, or reinvesting in local communities.
“The Biden administration’s proposed budget represents a staggering increase in borrowing and spending, with nearly $5 trillion in new taxes on American families, while simultaneously adding over $16 trillion to our public debt,” Hoplin continued.