Biden's $3.5 trillion spending plan would fund climate initiatives, paid leave, child care, education and health care by, among other things, raising the top marginal individual income tax rate to 39.6 percent.
The Treasury analysis, which focused exclusively on small businesses filing as S-corporations, partnership and individual income tax returns, found that less than 3% of small business owners fall in the top tax bracket. In 2018, married couples making about $150,000 working at their own small business paid over 20 percent of their income in federal income and self-employment taxes. By contrast, U.S. multinational corporations paid less than 10 percent in corporate income taxes on U.S. profits, the Treasury analysis found.
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