WASHINGTON, Aug 19 (Reuters) - Just three percent of the nation’s small businesses would see a tax increase under U.S. President Joe Biden’s plan to tax the nation’s highest earners to help fund a $3.5 trillion spending bill, a new U.S. Treasury analysis shows.
The Biden administration is expected to tout the findings of the report in a virtual meeting on Thursday with a Pennsylvania small business. Democrats in Washington hope to overcome intra-party squabbles to pass the president’s signature spending plans, aimed at climate initiatives and expanding the social safety net.
The White House has sought to harness the political popularity of the nation’s some 30 million small businesses and their agitation over the current corporate tax structure, which small businesses view as generous to larger, billion-dollar corporations like Walmart Inc and Amazon.com Inc over Main Street establishments.
Biden’s $3.5 trillion spending plan would fund climate initiatives, paid leave, child care, education and health care by, among other things, raising the top marginal individual income tax rate to 39.6 percent.
That rate would affect single individuals with taxable income of more than $452,700 and married couples filing jointly with income over $509,300, according to White House figures.
The Treasury analysis, which focused exclusively on small businesses filing as S-corporations, partnership and individual income tax returns, found that less than 3% of small business owners fall in the top tax bracket. (Reporting By Jarrett Renshaw; Editing by Heather Timmons and Chizu Nomiyama)