- U.S. Chamber of Commerce offers state-by-state analysis of potential impact of White House tax increases on small businesses
- Organization says increasing the corporate tax rate and other tax changes would negatively impact 1.4 million companies with fewer than 500 employees
- In Connecticut, the U.S. Chamber says the changes would affect an estimated 14,804 of the state’s 655,653 small businesses
Summary by Dirk Langeveld
In raising objections to White House proposals to raise the corporate tax rate and other taxes, the U.S. Chamber of Commerce is providing a state-by-state breakdown of how they say the measures would impact small businesses.
The U.S. Chamber says that while the Biden administration has framed the proposals as impacting larger corporations and wealthy citizens, they could raise costs for small businesses as well. Using data from the Census Bureau and Internal Revenue Service, the organization says that 1.4 million companies with fewer than 500 employees would be negatively affected.
In Connecticut, the U.S. Chamber says 21,417 employers would see higher taxes under the tax proposals, including 14,804 businesses with fewer than 500 employees. It says the changes would also result in a combined federal-state tax rate of 33.4 percent for Connecticut businesses.
- The White House plan calls for a variety of measures to raise $3.6 trillion over the next decade, including raising the corporate tax rate to 28 percent, stronger IRS enforcement, a 21 percent global minimum tax rate on corporations, and higher capital gains and income tax rates for wealthy citizens
- The corporate tax rate in the United States was lowered from 35 percent to 21 percent under the Trump administration, and Republicans have been firmly opposed to increasing it
- Critics of increasing the corporate tax rate say it will hamper the ability of businesses to hire workers and raise wages during the economic recovery from COVID-19, and the White House proposal is likely to be revised considerably in Congress
- The U.S. Chamber report identifies 655,653 small businesses in Connecticut, with the majority concentrated in the industries of construction, retail, and professional, scientific, and technical services
