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Your Jewelry Store Is Unlikely to Pay Higher Income Taxes Under Biden: Treasury

New analysis says proposed tax hike won’t impact 97 percent of small businesses.

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Ninety-seven percent of small business owners won’t face an income tax increase if President Biden’s tax plan becomes law, according to a recent analysis from the U.S. Department of the Treasury.

The analysis looked exclusively at small businesses filing as S-corporations, partnerships and on individual income tax returns. The Treasury said nearly every small business falls into these categories and is thus not subject to a corporate tax. Instead, these businesses report income on the owner’s individual tax return and are taxed at individual income rates.

Under Biden’s plan, the corporate tax rate would rise from 21 percent to 28 percent, and the top marginal individual income tax rate would be restored to 39.6 percent. These changes would affect less than 3 percent of small businesses, according to the analysis.

The White House said the increased tax revenue would go toward investments in education, child care and fighting climate change. The administration’s full statement on the Treasury analysis can be found here.

For its part, the U.S. Chamber of Commerce opposes the tax hikes, saying there are 1.4 million small businesses that file as C-corporations and will have to pay a corporate tax. There are more than 30 million small businesses in the U.S., according to the Small Business Administration.

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When the Kids Have Their Own Careers, Wilkerson Can Help You to Retire

Alex and Gladys Rysman are the third generation to run Romm Jewelers in Brockton, Mass. And after many decades of service to the industry and their community, it was time to close the store and take advantage of some downtime. With three grown children who each had their own careers outside of the industry, they decided to call Wilkerson. Then, the Rysmans did what every jeweler should do: They called other retailers and asked about their own Wilkerson experience. “They all told us what a great experience it was and that’s what made us go with Wilkerson.” says Gladys Rysman. The results? Alex Rysman says he was impressed. “We exceeded whatever I expected to do by a large margin.”

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