Small businesses are the strength of America’s economy. So it stands to reason that they will be the strength of our economic recovery, as well. Yet some in Congress are advancing legislation that would tax the very investments that many small businesses rely on to provide the financial security they need to push our economy forward.

The bills (HR 1068 and S.1598) claim to target “carried interest.” In practice, they will raise taxes on investments in small business.

Approximately 14,000 small businesses rely on these investments, as do the retired teachers, firefighters, police officers and other public servants who rely heavily on the returns from such investments to form the bedrock of their retirement plans. Raising taxes on business investment would also hurt small real estate investors, including those that fund affordable-housing projects.

As a member of the Legislature who served on the Appropriations and Financial Affairs Committee, I know what policy can do to the economy. As we rebuild and recover from the economic impacts of COVID-19, we must ensure that our small businesses have the financial flexibility to continue creating jobs. And further, we must avoid policies that will create catastrophic impacts to financial security for working people and retirees. (After all, we have enough problems without creating more.)

As Congress returns to a full fall agenda, please do not forget the small businesses in your state, and the positive ripples they extend through the economy. Please oppose HR 1068 and S.1598 and say “No” to the small-business investment tax.

Nathan Wadsworth
Republican state representative
Hiram

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