In a letter to Speaker of the House Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and Senate Minority Leader Mitch McConnell, Western Growers and other leading business organizations requested that the Net Investment Income Tax – which primarily impacts small and family-run businesses – not be expanded.
“In the face of a possible recession, 40-year high inflation, unprecedented supply-chain challenges, and chronic labor shortages, raising taxes on small, individually, and family-owned businesses is the wrong approach and should be rejected,” the letter states.
“According to recent media reports, two tax increases under consideration would fall entirely on small, individually, and family-owned, closely-held businesses: 1) Expanding the 3.8 percent Net Investment Income Tax (NIIT) to individuals and families who actively participate in their business, and 2) L:imiting the ability of small, individually-, and family-owned businesses to fully deduct their losses during an economic downturn by expanding and extending the so-called “excess business loss limitation” for “noncorporate taxpayers.” Combined, these would increase revenues by more than $400 billion over 10 years, shouldered entirely on the backs of small, individually, and family-owned businesses.”
You may recall a similar effort just last year, where WG led a successful agricultural industry effort to prevent Congress from meddling with family farm taxes including long-standing estate tax benefits. We continue to monitor and engage on this important effort.
The full text of the letter can be read here.
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