Massive tax increase under consideration by Congress would affect small businesses

Jul 8, 2021
Written by wpengine

WR President and CEO Renée Sunde sent letters to U.S. Representatives Suzan DelBene and Derek Kilmer requesting them to reject President Biden’s proposed $3.6 trillion in tax hikes to pay for several new federal spending programs. The letter explains that while the administration claims the tax increases would only be imposed on big corporations and the rich, the truth is they would ultimately be paid by workers and families through lost jobs and lower wages, significantly impacting thousands of small businesses. In Washington State, the tax hike would hit 35,812 employers, including 24,754 small businesses with fewer than 500 employees.

WR noted that under the proposal, the corporate tax rate would increase to 28 percent from its current 21 percent, increasing taxes by one-third on businesses that are still working to recover from the recession brought on by the COVID-19 pandemic.