The Small Business & Entrepreneurship Council (SBE Council) has publicly posted a letter criticizing the Inflation Reduction Act that was approved by the US Senate in a party-line vote. While the name claims to reduce inflation, some analysts have stated there is nothing or very little in the bill that will actually reduce inflation. But it will increase government expenditures while raising taxes.
Yesterday, the SBE Council highlighted the “stealth tax” that will directly harm small businesses and entrepreneurs.
To quote the letter, signed by SBE Council President and CEO Karen Kerrigan:
“The Small Business & Entrepreneurship Council (SBE Council) strongly opposes “The Inflation Reduction Act” (IRA). The title of the legislation belies what it will actually do, as both common sense and the Congressional Budget Office convey that the package will have “a negligible” – if any – positive effect on inflation. In fact, the “IRA” could do the opposite, as businesses will be less inclined and incentivized to invest and therefore supply will be inhibited. Small businesses will be harmed by this outcome as well as the overall uncertainty and adverse effects that will result from many provisions in the package.”
Kerrigan points out that the Internal Revenue Service (IRS) will balloon in size under the bill adding approximately 87,000 new employees – a number that some claim will make it one of the largest federal agencies in the country.
While proponents of the bill claim it will help the IRS go after the wealthy, data shows otherwise that small business owners are targeted most frequently.
“The tax increases, price controls, new spending – and, ironically, various tax credits – are negatives, not positives, for our economy and small businesses,” while advocating for policies that boost investment and risk taking.
SBE council urges elected officials to “work on productive policy that will boost entrepreneurs, not saddle them with more costs and taxes.