RENSSELAER, N.Y. – Yesterday, the ABMA signed-on to a Main Street letter opposing the Inflation Reduction Act (IRA). While its name implies otherwise, this bill would not reduce inflation and includes multiple tax increases on small businesses.
The ABMA’s biggest concern is the Warner Amendment, which was adopted with little consideration by the Senate. This amendment would extend for two years the cap on losses a business owner can claim. This amounts to a $52 billion dollar tax hike, imposed to offset the cost of exempting private equity investors from the 15% corporate minimum tax.
“This bill is bad for businesses and worse for the country as a whole,” said Joe Cecarelli, ABMA Chair. “It will not reduce inflation for the everyday American as claimed, and it will make doing business in this COVID-recovering economy even harder while eroding the businesses recovery many small businesses have worked so hard to regain.”
“Congress needs to take the time to craft a bill that will truly curb inflation for the average American,” said Katherine Slye-Hernandez, PhD, ABMA Director of Legislative and Regulatory Affairs. “The Congressional Budget Office’s evaluation of the bill shows increases to the deficit over the next 10 years, the very opposite effect Congressional leaders have claimed. This, on top of the Warner Amendment, is not helping inflation but making it worse.”
ABMA is keeping a close eye on IRA and remains firm in its stance to oppose it. Members of ABMA will continue to be notified on the status of this harmful bill.