Small business owners praise Biden proposals, bemoan pro-corporate tilt of America’s tax code
Rosalind McCallard lives in Portland, Oregon. Along with her husband, she owns Snackrilege Vegan Foods, which she cheerfully describes as the “only wholesale heavy metal-themed sandwich company in the world – at least in the U.S., but probably the world!”
McCallard and her husband have been in business about seven years and employ six workers. They favor President Biden’s plan to more progressively tax corporations and the wealthiest Americans to pay for the proposed American Jobs Plan and American Families Plan.
“We believe that Main Street businesses understand how important it is for all of us to make a shared contribution – toward schools, hospitals, buses, roads and all of the things that make our communities thrive and support prosperous local economies,” McCallard said. “We believe that everyone paying their fair share of taxes will make our society better for everyone.”
McCallard and three other small business owners came together this week to praise President Biden’s plan to progressively raise revenues. You can read more about Monday’s “Tax Fairness Day” event here; you can view the approximately 90-minute program here.
Natasha McKeller Crosby is a small business owner and realtor in Richmond, Virginia. She also serves as President of Richmond’s LGBTQ Chamber of Commerce.
“COVID-19 has driven home how essential it is to fund our communities and provide relief for the Black-owned businesses, for the Latino-owned businesses, for the mom and pops hit hardest by this pandemic,” McKeller Crosby said. “Now, with all of us pitching in, with our small business owners, their employees, people of all races, people of all walks of life, it’s now time for corporations to pitch in as well.
Sarah McDowell, a small business owner in West Virginia, gained valuable expertise before she ever went into business for herself when she worked in the legislative and executive branches of state government. While there, she learned a lot about policies relating to education, health care, economic development, and taxation.
“You see, I don’t mind paying taxes,” she says. “I don’t mind paying my fair share of taxes because I know where it goes. Local schools, local hospitals, first responders, and more – all critical components to building healthy and strong communities. But if we want to build healthy, strong, and economically thriving communities? Well, we’ve got to address the current taxation system.”
Of Biden’s proposal, McDowell says, “It helps level the playing field for small businesses like mine by making corporate America pay their fair share, which is still lower than it was three years ago. This in turn will stimulate local economies, strengthen our communities, and create jobs. That’s something we can all support.”
Already, some who oppose Biden’s tax proposals are spreading misinformation about their potential impact – including claims that small businesses will be harmed, and that subsequently will kill jobs.
Anne Zimmerman, a CPA and small business owner in Cincinnati, Ohio, said that is not true. “Most small businesses are not paying at the corporate rate,” said Zimmerman, who serves as co-chair of Small Business for America’s Future. “They’re paying at the individual rate because they’re pass-throughs. Almost none of the smallest businesses are C–corporations, which would pay at the corporate rate anyway. It’s really affecting the large companies, the Fortune 500s, the Amazons of the world, many of which are not even paying any tax.”
Soon after Biden’s plans were released, Small Business for America’s Future surveyed its network of 1,052 small businesses and found widespread support both for Biden’s America Jobs Plan and for his tax proposals.
Specifically, two-thirds said they support increasing taxes on corporations to pay for the American Jobs Plan. And three-fourths said the current tax code favors large corporations over small businesses, corporations do not pay their fair share of taxes, and small businesses are harmed when large businesses or corporations use loopholes to avoid paying taxes.
Zimmerman says her favorite part of Biden’s plan is that “all public corporations are going to have to pay at least 15 percent of their book income, what they report to their shareholders, not what they report to the tax man. That makes so much sense to me. Why wouldn’t we have them pay at least 15 percent, when individuals are paying every bit that much and even more?”