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Claiming 97 Percent of Small Businesses Exempt from Biden Taxes Is Misleading

The Biden administration recently cited an analysis from Treasury claiming that “the President’s agenda will protect 97 percent of small business owners from income tax rate increases.” However, the figure is misleading. To assess the economic effect of higher marginal tax rates, it matters how much income or investment will be affected—not how many taxpayers. […]

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Analysis of Sen. Wyden’s Pass-through Deduction Proposal

Senator Ron Wyden (D-OR) recently introduced the Small Business Tax Fairness Act—the impact of which we modeled—to reform the Section 199A pass-through business deduction created in the Tax Cuts and Jobs Act (TCJA) of 2017. The provision currently allows taxpayers to deduct up to 20 percent of their qualified business income from their taxable income, […]

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D.C.’s Income Tax Hike Helps Maryland and Virginia, Not D.C.

The District of Columbia weathered the pandemic with stable tax collections, down less than 1 percent in FY 2020 while recovering above pre-pandemic levels in FY 2021. Yet, even as lawmakers in eleven states have cut income taxes this year, the D.C. Council has responded to surpluses and growth by voting to include substantial income […]

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Biden Plan’s Higher Taxation of Businesses Would Boost Collections to Highest in 40-Plus Years

President Biden’s tax proposals released as part of his fiscal year 2022 budget would collect about $2 trillion in new tax revenue from businesses over 10 years. This new revenue would bring income tax collections on businesses as a portion of GDP to its highest level on a sustained basis in over 40 years. Income […]

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Many Small Businesses Could Be Impacted by Biden Corporate Tax Proposals

Although the Biden administration’s intention may be to target top firms and earners with its new corporate tax proposals, many small businesses could be impacted by what would be unwise policy considering the disproportionate harm done already by the COVID-19 pandemic. Contrary to the image some may hold of corporations, not all are necessarily large […]

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Facts and Figures 2021: How Does Your State Compare?

Was this page helpful to you? Thank You! The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work? Contribute to the Tax Foundation Share This Article! Let us know how we can better serve you! […]

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A $6 Billion Tax Increase Proposal in Pennsylvania Would Yield the Nation’s Highest Combined Flat-Rate Income Taxes

Under the budget introduced by Pennsylvania Gov. Tom Wolf (D), taxes would go up more than $6 billion per year, with additional revenue from both individual and corporate income taxes. The state’s flat personal income tax rate would increase by 46 percent, partially offset by an outsized increase in the poverty credit, which would see […]

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Wisconsin’s PPP Loan Recipients Face Hundreds of Millions in Surprise Taxes

Nearly 90,000 Wisconsin small businesses that have taken out loans under the federal Paycheck Protection Program (PPP) will face hundreds of millions of dollars in state income tax liability on those loans this spring, despite the loans being tax-free at the federal level. Unless the legislature acts, businesses that have received PPP loans and related […]

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Pandemic Highlights the Need for Better Tax Policy for Entrepreneurs and Small Businesses

As Congress works to provide another round of emergency relief for individuals and businesses impacted by the pandemic and pass a bill funding the government for FY 2021, it is a good time to step back and consider how tax policy affects entrepreneurs and small businesses. In addition to short- and long-term tax policy issues, […]

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Reduced Corporate Income Tax Rates for Small Businesses in Europe

Corporate income taxes are commonly levied as a flat rate on business profits. However, some countries provide reduced corporate income tax rates for small businesses. Out of 27 European OECD countries covered in today’s map, nine levy a reduced corporate tax rate on businesses that have revenues or profits below a certain threshold. Belgium, France, […]