The proposed budget is the latest attempt to resurrect failed policies of the Build Back Better Act Washington, DC – The National Association of Wholesaler-Distributors (NAW), which is the voice of the 8.2 trillion-dollar wholesale distribution industry, and employs more than 6 million U.S. workers, issued the following statement in response to President Biden’s proposed federal
The proposed budget is the latest attempt to resurrect failed policies of the Build Back Better Act
Washington, DC – The National Association of Wholesaler-Distributors (NAW), which is the voice of the 8.2 trillion-dollar wholesale distribution industry, and employs more than 6 million U.S. workers, issued the following statement in response to President Biden’s proposed federal budget:
“President Biden’s announcement of over $4 trillion dollars in higher taxes is entirely unacceptable, and is classically bad fiscal policy,” said NAW CEO Eric Hoplin. “Once again, the burden of Washington’s out of control spending will be passed off to Main Street businesses and working families, who are already dealing with difficult economic situations caused by increased government spending. NAW strongly urges this Administration to reevaluate its position and cut back on the wasteful spending that continues to drive inflation in this country.” concluded Hoplin.
“The proposed tax increases in the President’s budget are a blatant attack on Main Street businesses and the families they support,” said NAW Associate Vice President for Government Relations Alex Hendrie. “President Biden’s proposed tax increases could not even pass when Democrats controlled both Houses of Congress and are totally detached from reality.” concluded Hendrie.
Proposed tax increases on the wholesale distribution industry include:
- Increasing the 3.8 percent Net Investment Income Tax (NIIT) to 5 percent and applying it to all S-Corporation and partnership income above $400,000
- Increasing the top individual tax rate from 37 percent to 39.6 percent including on main street businesses organized as S-corporations and partnerships
- Raising the corporate tax rate from 21 to 28 percent
- Additional limitations on the ability of passthrough businesses to deduct business losses
- Doubling the top capital gains tax rate from 20 percent to 39.6 percent
Wholesaler-distributors already paid a 28.43% average effective tax rate in 2022. The average after tax profit margin for our industry is only 2%. If the President’s budget and his proposed tax increases are passed, wholesaler-distributors will face additional economic hardship and uncertainty which will have negative impacts on their businesses. With additional taxes, our members will have difficulty adding jobs or expanding benefits to their employees. This Administration will stifle economic growth and recovery once again due to reckless spending in this latest attempt to resurrect the already defeated Build Back Better Act.
NAW is one of America’s leading trade associations, representing the $8.2 trillion wholesale distribution industry. Founded in 1946, NAW is comprised of national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all sectors of distribution. Our industry employs more than 6 million workers throughout the United States and accounts for 1/3 of the U.S. GDP. There are 35,000 wholesale distribution companies that operate in nearly 150,000 places of business across North America, including all 50 states.
NAW’s mission is to deliver world-class programs and services, designed to help the most dynamic companies in wholesale distribution succeed. Our programming is tailored for the CEOs, senior executives, and rising leaders at our member companies and associations. Members engage with NAW through our offerings in: Thought Leadership, Networking, Executive Education, Benchmarking/Research, Shared Resourcing, Partnerships, Government Relations, and Public Affairs.