Senate Democrats want to boost taxes on some high earners and use the money to extend the solvency of Medicare.
Under the latest proposal, people earning more than $400,000 a year and couples making more than $500,000 would have to pay a 3.8 percent tax on their earnings from pass-through businesses.
Nearly 200 organizations have voiced their opposition. In a letter to lawmakers, they said, “The bottom line is the NIIT [Net Investment Income Tax] expansion is nothing more than a 3.8 percentage point rate hike on pass-through businesses. If you’re worried about raising rates on employers at the same time the odds of a recession are rising, then you’ll want to avoid this tax hike.”
The National Association of Manufacturers (NAM) is among the 200 organizations. NTD talked to Nicole Wolter—who is on the board of the NAM and is also the president and CEO of HM Manufacturing—and asked her about how the new tax proposal will impact her business.
