If Georgians elect Raphael Warnock and Jon Ossoff in the January 5th runoff election, the Senate will be under Democratic control, effectively sealing the deal for a Biden-Harris tax hike agenda.
President-elect Joe Biden has pledged to repeal Republican Tax Cuts and Jobs Act (TCJA) of 2017 “on day one”.
The TCJA established a tax cut for pass-through businesses (partnerships, S-Corporations, LLCs) in the form of a 20 percent deduction for qualified business income, also known as the “pass-through deduction.”
Repealing the TCJA will eliminate this tax cut, increasing taxes on small businesses in Georgia and across the country.
There are about 30 million pass-through businesses in the United States, and the deduction reduced the top tax rate on pass-through entities from 37 percent to 29.6 percent. After Republicans passed the TCJA and President Trump signed it into law, 3,887,160 business in Georgia utilized the deduction, saving a total of $64,932,105 in 2018 according to IRS data collected by Americans for Tax Reform.
The Coronavirus pandemic has caused at least 800 small businesses to close their doors per day. As we look towards recovering from the pandemic and rebuilding the economy, the last thing small businesses need is a tax hike.
Incumbent Republican Senators Loeffler and Perdue have been consistent defenders of the Georgia taxpayer. Perdue voted for the TCJA, which reduced taxes for Georgians across the board. While Loeffler was not in Congress at the time, she has been a consistent voice for lower taxes and is a Taxpayer Protection Pledge signer, a written commitment to her constituents to oppose any and all income tax increases.
On January 5th, the choice is clear. Loeffler and Perdue will fight for small businesses in Georgia. A vote for Ossoff and Warnock is a vote against Georgia’s small businesses.