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tax hike aimed at "billionaires" pandemic startups, not thwarting their access to
punishes entrepreneurs. capital and growth.
Catchy slogans like "raising taxes on Small businesses could face financial
billionaires" hide efforts included in the penalties they cannot afford.
reconciliation spending bill to penalize The reconciliation bill would give federal
investments in innovative start-up companies agencies additional power to place fines on small
and entrepreneurs. businesses. Under the proposed legislation,
Eighty-six percent of the businesses that receive small businesses could face up to $100,000 per
investment capital (venture capital, angel citation from the National Labor Relations Board
investors, private equity) are small businesses. (NLRB)—double the current amount—for actions
By putting higher taxes on investments, the deemed "anti-union."
provisions will drive wealthy investors away While most federal agencies admittedly
from investing in entrepreneurial ventures and, need funding for technology upgrades and
instead, they will look to investment portfolios modernization, it is concerning that the
that are risk averse. reconciliation bill’s $80 billion for the Internal
It’s a bad time to punish entrepreneurs. New Revenue Service (IRS) coincides with plans for
businesses are opening at their highest rate since increased audits and fines. The IRS should be
the U.S. government began tracking start-ups helping small businesses figure out the dozens of
17 years ago, and it took business startups more tax changes enacted throughout the pandemic to
than 10 years to bounce back after the 2007- help Main Street recover instead of pushing its
2009 recession. We should be applauding post- agents to audit more small businesses.
SOUTH CHINA BUSINESS JOURNAL 12
punishes entrepreneurs. capital and growth.
Catchy slogans like "raising taxes on Small businesses could face financial
billionaires" hide efforts included in the penalties they cannot afford.
reconciliation spending bill to penalize The reconciliation bill would give federal
investments in innovative start-up companies agencies additional power to place fines on small
and entrepreneurs. businesses. Under the proposed legislation,
Eighty-six percent of the businesses that receive small businesses could face up to $100,000 per
investment capital (venture capital, angel citation from the National Labor Relations Board
investors, private equity) are small businesses. (NLRB)—double the current amount—for actions
By putting higher taxes on investments, the deemed "anti-union."
provisions will drive wealthy investors away While most federal agencies admittedly
from investing in entrepreneurial ventures and, need funding for technology upgrades and
instead, they will look to investment portfolios modernization, it is concerning that the
that are risk averse. reconciliation bill’s $80 billion for the Internal
It’s a bad time to punish entrepreneurs. New Revenue Service (IRS) coincides with plans for
businesses are opening at their highest rate since increased audits and fines. The IRS should be
the U.S. government began tracking start-ups helping small businesses figure out the dozens of
17 years ago, and it took business startups more tax changes enacted throughout the pandemic to
than 10 years to bounce back after the 2007- help Main Street recover instead of pushing its
2009 recession. We should be applauding post- agents to audit more small businesses.
SOUTH CHINA BUSINESS JOURNAL 12
