While there has been chatter that some Republicans may look for tax increases, the Small Business and Entrepreneurship Council (SBE Council) expects a pro-growth tax bill to be signed into law.
Earlier this month, the SBE Council joined dozens of other pro-business groups telling Congress to oppose any increases.
As some portions of the Trump tax bill from his first term, the 2017 Tax Cuts and Jobs Act (TCJA), are set to expire, Congress is moving quickly to strike a deal that both the House and the Senate can approve.
SBE Council states that any tax increase would penalize productive economic activity and would not be good policy, harming Main Street businesses.
Earlier this year, SBE Council chief economist Ray Keating explained:
“Increasing taxes on investment will negatively impact business startups and growth, and will inflict broad damages on incomes and jobs for workers, on entrepreneurship, on competitiveness, and on economic growth. Putting aside the political rhetoric, that’s the harsh economic reality if taxes are increased on carried interest.”
Earlier today, the Secretary of the Treasury, Scott Bessent, said on X that they had had another good “Big Six” meeting and they hope to have a tax bill completed before the 4th of July.
“The House is moving things along quickly, and the Senate is in lockstep. I’m happy to announce that they are in substantial agreement and that this is going to be a very big, pro-growth win for the American people,” said Bessant.
While concerns remain that government spending continues to rise and tariffs may spin the economy into recession, a tax bill signed into law by the President should help bolster markets.
