Biden Democrats have declared war on American small business
Thousands of small businesses in America are teetering on the brink of permanent shutdown, and Democrats in Washington are about to give them one last push. The result will be further rupture of our social fabric and the permanent loss of working class jobs.
Over the past several months, small businesses have persevered as best they can, continuing until the end of “temporary” welfare programs that push people away from work. But if there was any doubt that the Democrats’ ultimate goal was not a temporary boost to Americans most affected by the shutdowns, it was a calculated one. A step towards government control and socialism, the proposed $4.3 trillion tax and spending bill removes it all ($4.3 trillion is the real cost, as we learned on the Budget Committee).
Walk down any major street or city street in America today, and you’ll see sign after sign with pleas for help, employment incentives or apologies in advance for short hours and late service due to understaffing. There are nearly 11 million jobs across the country, and our small businesses are trying to get back on their feet after crushing shutdowns.
But where are the workers? The short answer is that the Biden administration is more interested in literature that pays more, or just as much, to stay at home rather than back to work. Since taking office, President Joe Biden and Democrats in Congress have prioritized big government over earned pay slips.
A democratic tax and spending plan will not solve this problem. The proposal would eliminate the child tax credit as we know it, and replace it with welfare without any work requirements. Republicans believe that the family is the foundation of a strong community, which is why we have supported expanding the child tax credit in the past. But we also know that work defines purpose, and there is no government substitute for job and earned income.
By abolishing the labor clause, the government puts itself in competition with small businesses. And as the past year has demonstrated, small businesses operating with tight margins are no match for the government printing press or authorization machine.
Another harmful effect $4.3 trillion in government spending Is the continuation of inflation. It’s good for Americans to have more money in their pockets, but the best way to achieve that is by cutting taxes, not faulty labor policies and subsidies that make dollars worthless.
Having already crossed nearly $2 trillion in spending this year, our economy is on the move The highest inflation rate in 13 years. This means higher prices for everyday goods for families and businesses. This isn’t just an indicator for economists: “Sysco, one of the nation’s largest food distributors, showed food price inflation of 10.2 percent in its most recent quarterly report, increases that were passed on to restaurants and restaurant customers in turn, the Washington Post reported.
Moreover, even wage gains for lower wage workers are negated by these higher consumption costs. A democratic agenda that artificially boosts demand through government stimulus while reducing supply through a self-employment crisis and rising energy costs will only exacerbate this situation.
Finally, the Democrats plan Biggest tax increase in history. The headline is the increased corporate tax rate, which will affect all businesses and ultimately their employees. In 2017, Congressional Republicans and President Donald Trump cut the corporate rate to 21 percent, from 35 percent, resulting in the greatest economy we’ve seen in a generation. Jobs and wages have increased at historic levels for Americans across the social and economic spectrum.
Biden’s and Democrats’ plan raises the corporate tax rate to 26.5 percent, far from the proposed “global minimum tax” of 19 percent that would drive more business abroad, dampening production and innovation in America.
Democrats argue that big companies can pay more. But apart from their hypocrisy that led to new deductions for wealthy university endowments like Harvard, their plan hurts the young man. By removing deductions and raising taxes by nearly 4 percent for business owners who act as “candidates,” the plan puts small businesses that have been struggling since March 2020 — and new businesses created since the pandemic under presumed tax burdens, at risk.
As a former owner of a small business, I know that these conditions are not sustainable. Americans don’t deserve to bear the brunt of policies pushed by the people in Washington who will never feel the effects of them, and who will receive health stipends every month no matter what.
The Democrats’ idea of the economic plan is to punish the citizens who produce for our country and work to provide for their families, while rewarding themselves and others for staying home.
Representative Kevin McCarthy (R-CA) is the House minority leader.