When Joe Biden campaigned, he and Democrats did so on the platform of hammering the wealthiest in this country with higher taxes so they could “pay their fair share.”

When we saw his tax plan, we stated at the time it would have a devastating effect on retirement accounts and possibly even small business owners.

The Tax Foundation recently analyzed the plan, and it came to the same conclusion regarding small business owners being collateral damage in Biden’s tax plan.

Small Businesses Will Pay the Price

One of the ways Biden wants to tax the wealthy in this country is by changing the tax code on capital gains.

While it would impact the country’s wealthiest, the Tax Foundation also found that it could hit small family-owned businesses just as hard.

Currently, an inherited family-owned business would not incur any additional capital gains tax liability unless the business was sold.

Even then, the only tax liability would be for the gain during his or her ownership period.

By repealing what is known as the “step up,” that would change rather significantly.

The study found that family-owned farms, for instance, would have an average increased tax bill of $700,000, which exceeds the yearly income of many of these farms, effectively putting them out of business.

The analysis of the proposed tax plan, which was penned by economist Alex Durante, stated, “The Biden administration has primarily focused on increasing taxes on top earners to generate revenue to fund its spending priorities.

“However, these proposals would hit many pass-through businesses and much of pass-through business income, including small businesses, family-owned businesses, and farms.”

It will now be up to Republicans in Congress to ensure this never happens.

Source: Fox Business