Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, testified before the U.S. Senate Committee on Finance, urging Congress to avoid tax hikes on small businesses. Milito spoke on various proposals in Congress that would impose massive new tax hikes on small businesses and stifle America’s small business economy.

Impact on Small Businesses

Milito emphasized that small businesses often report on the owner’s individual tax return because 85% of small businesses are pass-through entities, such as S-Corps, sole proprietorships, and partnerships. These businesses would be subject to additional Social Security taxes under the proposal. Profits exceeding $250,000—often reinvested into payroll, equipment, or expansion—would face a new 12.4% tax, even if owners do not withdraw that income personally.

Milito argued that small businesses continue to face economic challenges and that Congress can help mitigate these challenges by extending beneficial small-business tax provisions and rejecting a $33.8 trillion tax hike. Tax certainty will help businesses plan and increase small business confidence.

Original reporting: NFIB (National Federation of Independent Business) — read the source article.