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Rand Paul Says More Than 8 Million Small Businesses at Risk of Tax Hike
Small Business News ^ | July 30, 2022 | Samson Haileyesus

Posted on 07/31/2022 7:26:14 AM PDT by RicocheT

According to the Republican senator from Kentucky, Small businesses organized as S-Corps or Partnerships could face a tax increase and hurt job creation. The NIIT is a 3.8% surtax on passive income (capital gains, interest, rental and royalty income, and dividends). However, the proposal suggests expanding the tax to apply to active income over $400,000 individually or $500,000 jointly. The proposed expansion of NIIT is expected to raise some $183.6 billion in tax revenues over the next decade, according to the Tax Foundation.

The bill proposes to expand the taxation to include all business income, whether or not the taxpayer materially participates in the business, as long as that income is not already subject to payroll taxes. This translates into S Corporation shareholders, limited partners, and other owners of a pass-through business who were previously exempt. Now they would be required to pay Net Investment Income Tax.

Additionally, the effect of the expansion could result in putting 64% of small businesses, which is millions of small businesses in danger of a tax hike. The affected small businesses employ 62% of small business workers or 76.25 million employees. And this would put more than 70% of small businesses in the professional, scientific, and technical services (74%); construction (70%); and accommodation and food services (70%) facing higher taxes.

(Excerpt) Read more at smallbiztrends.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Wisconsin
KEYWORDS: businesses; carriedinterest; economy; labor; paultard; paultardation; randpaulsucks; ronpaulsucks; taxes
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Small businesses are where a lot of jobs are created and a way for families to start small but become upper middle class. The Democrats will hurt that and owners will see their dreams crushed
1 posted on 07/31/2022 7:26:14 AM PDT by RicocheT
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To: RicocheT

Small businessmen are the core of conservatism-the enemy to these people. Take them out and the fight is gone.


2 posted on 07/31/2022 7:30:12 AM PDT by DIRTYSECRET
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To: RicocheT

Glad I retired in 2012, sold my 20ac property, buildings, contents and equipment.


3 posted on 07/31/2022 7:39:01 AM PDT by Carriage Hill (A society grows great when old men plant trees, in whose shade they know they will never sit.)
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To: RicocheT

Let’s look at the facts.

Workforce participation (working age 18-65) in Argentina is 57%
43% people in Benefits

Workforce participation in the US is 58%
42% people on benefits.

Argentina is failing. We appear to be failing, except we have the world currency for a little while longer.

Democrats want to raise taxes so they can
Put more people on the ‘benefit’ side. Chasing Argentina economic choices is a guarantee of failure.

I have a great idea……how about we get rid of benefits in Argentina and the US except those that legitimately need it because of disability (real) and see if we can fix things..


4 posted on 07/31/2022 7:40:31 AM PDT by Pete Dovgan
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To: RicocheT; DIRTYSECRET

Yes, this is the cabal of the huge companies and their government buddies to crush all the smaller businesses. Chains will replace small businesses. Think only a Home Depot, only an Olive Garden and only a Dick’s Sporting Goods.

The 10-year tax “savings” is a pittance on what we waste every year in Government. Along with a huge increase in IRS agents who will be targeting the same small businesses to crush them.

This is WEF-Dem-Union push for total control of elections, guns, food, business and no borders.

The first person who fights back, like J6 people did, peacefully, will be “Chauvin’d” and the Regeime will come down hard on them.


5 posted on 07/31/2022 7:41:47 AM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: RicocheT

If the business shows no profit, there is no tax due


6 posted on 07/31/2022 7:43:58 AM PDT by bert ( (KWE. NP. N.C. +12) Juneteenth is inequality day)
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To: wac3rd

The government deficit and debt is so large that increasing tax revenue is irrelevant.

Any tax increases these days are just punishing of enemies.


7 posted on 07/31/2022 7:44:43 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: RicocheT

Wreck all those lives for a measly $18.4 billion a year?


8 posted on 07/31/2022 7:48:00 AM PDT by ComputerGuy (Heavily-medicated for your protection)
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To: RicocheT

Business taxes and hikes are just another hidden tax on you and I, the individual consumer.

As the vile, rogue federal government goes up, our standard of living goes DOWN.


9 posted on 07/31/2022 7:48:54 AM PDT by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
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To: RicocheT

Republicans need to run ads explaining that employer taxes are just hidden sales taxes on us.


10 posted on 07/31/2022 7:49:28 AM PDT by aimhigh (THIS is His commandment . . . . 1 John 3:23)
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To: cgbg

The entire Left Wing-WEF apparatus wants the Cloward-Piven Strategy to take place. Currency collapse via spending and entitlements, no food, no law and most people will clamor for Government to re-order things and provide stability.

They are at the ready with FEMA camps for dissenters and for WEF-planned green, beehive, car-less, meat-less slave lives for us who survive the forced vaccinations. Limited childbearing, no religious freedom.

Think 1984 hits Brave New World in rural GA like the Walking Dead.


11 posted on 07/31/2022 7:49:47 AM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: RicocheT

“The proposed expansion of NIIT is expected to raise some $183.6 billion in tax revenues over the next decade, according to the Tax Foundation.”

So giving the government more billions to waste is a good thing because?

And actually if they were just burning it, it would be much better than what they actually do with it which is reward even more irresponsible behavior


12 posted on 07/31/2022 7:50:43 AM PDT by aquila48 (Do not let them make you "care" ! Guilting you is how they control you. )
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To: RicocheT; wac3rd; cgbg

Business taxes and hikes are just another hidden tax on you and I, the individual consumer.

As the vile, rogue federal government goes up, our standard of living goes DOWN.


13 posted on 07/31/2022 7:51:37 AM PDT by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
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To: RicocheT
One robs banks if one wants lots of money, because that is where the money is.

One increases taxes on businesses when one wants to generate more money for the fed gov gorilla with a bad spending habit, because that is where the money is.

The businesses have been deputized as tax collectors from the people, because this way the vast reserves of money are tapped,and the politicians escape fault because it is not THEM increasing the cost of stuff, you see.

14 posted on 07/31/2022 7:53:50 AM PDT by going hot (Happiness is a Momma Deuce)
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To: cgbg
The government deficit and debt is so large that increasing tax revenue is irrelevant.

Any tax increases these days are just punishing of enemies.

This !!!

15 posted on 07/31/2022 7:54:41 AM PDT by flamberge (Those who pose the greatest danger to you are living within five miles of you.)
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To: RicocheT
I believe that S Corporations are a way to shelter royalty payments from Social Security taxes.

I believe that President Biden has established an S Corp. That S Corp receives all royalties from his book. The royalties then pass through to him as "income" and is taxed at his income rate. However, Social Security tax is not paid on that "income".

My understanding is that this bill would tax "income" where Social Security taxes have not been paid.

If there are any tax lawyers out there, please comment.

16 posted on 07/31/2022 7:57:09 AM PDT by FtrPilot
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To: RicocheT
The Power to Tax Is the Power to Destroy
17 posted on 07/31/2022 7:57:25 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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To: Pete Dovgan

I have a great idea……how about we get rid of benefits


Remember that welfare is payment not to riot, we think it is to help them.

Stop the payments and...............................


18 posted on 07/31/2022 8:00:22 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: Jim W N

I am being taxed at every turn either directly or indirectly.

Property taxes WAY up - income the same

Gas prices WAY up - income the same

Insurance WAY up - income the same

Groceries WAY up - income the same

Everything is more expensive, yet my income remains the same.

Inflation is insidious. It will destroy the nation even as the banksters rig the game to make money for themselves (on our backs). Sure, we have survived it before but we NEVER had anything close to this amount of debt across society from the top down.

The GOP should demand the resignations of the Fed chair and Treasury Secretary. Sure, it won’t change a thing but having told us for months that all of this deliberate chaos was “transitory” they are not fit for their positions.


19 posted on 07/31/2022 8:15:19 AM PDT by volunbeer (Find the truth and accept it - anything else is delusional)
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To: RicocheT

Fedgov is a fascist government in the dictionary definition of the word. A few large corporations in Big Tech and Big Pharma run everything and dictate policy.

Bills written, with the help of mega corporations, are designed to destroy small businesses. It’s good for the big government favored businesses to wipe out potential competition and it’s good for FedGov because it is easier to control a few large corporations than thousands of small businesses.


20 posted on 07/31/2022 8:22:02 AM PDT by Flick Lives
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