Economist surprised Trump-era tax break survived Biden budget plan
![Joe Biden.](https://cdn.mos.cms.futurecdn.net/uHuBLZQVxMisZA7SxdJDgL-415-80.jpg)
President Biden surprised some analysts when his $6 trillion 2022 budget proposal didn't touch a 20 percent tax deduction, implemented by Republicans in 2017, for owners of closely held businesses, The Wall Street Journal reports. Biden had campaigned on limiting the break, the Journal notes, but it wasn't mentioned in the proposal, which detailed the White House's first $2.4 trillion worth of net tax increases. The White House has yet to address the matter.
William Gale, a senior fellow at the Brookings Institution, said he was a "frankly … a little surprised that the Biden administration didn't propose curtailing" the deduction, which he said "just seems to be kind of without redeeming qualities."
Kevin Kuhlman, the vice president of government relations at the National Federation of Independent Business, was also prepared for the break's removal, but his best guess as to why it wasn't mentioned is that "there is a sensitivity to direct tax increases on small businesses."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Congressional Democrats have criticized the deduction as "an unnecessary boon to the rich," and it's possible they'll still try to "change this break as a potential alternative way to raise money," the Journal reports. Read more at The Wall Street Journal.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Why is China stockpiling resources?
The Explainer The superpower has been amassing huge reserves of commodities at great cost despite its economic downturn
By Richard Windsor, The Week UK Published
-
Paraguay's dangerous dalliance with cryptocurrency
Under The Radar Overheating Paraguayans are pushing back over power outages caused by illegal miners
By Chas Newkey-Burden, The Week UK Published
-
The Week contest: Tattoo prediction
Puzzles and Quizzes
By The Week US Published
-
What has Kamala Harris done as vice president?
In Depth It's not uncommon for the second-in-command to struggle to prove themselves in a role largely defined by behind-the-scenes work
By Theara Coleman, The Week US Published
-
'Spare us the charade'
Instant Opinion Opinion, comment and editorials of the day
By Anya Jaremko-Greenwold, The Week US Published
-
How Biden's enablers may have delayed his bowing out
Talking Points Joe Biden's inner circle faces calls for a reckoning for allegedly shielding the president — and the public — from questions of aging and electoral viability
By Rafi Schwartz, The Week US Published
-
Biden ends reelection bid, endorses Harris
Speed Read The sitting president gave his VP full support to replace him atop the Democratic ticket
By Peter Weber, The Week US Published
-
Can Kamala Harris beat Trump?
Today's Big Question Some senior Democrats are unsure the vice-president can win in November even as party closes ranks behind her
By The Week UK Published
-
Pelosi and Obama add to doubts over Biden
Speed Read Both Democrats think the president should reconsider his reelection campaign, insiders say
By Rafi Schwartz, The Week US Published
-
Biden tests positive for Covid in fresh blow to campaign
Speed Read The president said he would consider dropping out of the race if presented with a "medical condition"
By Rafi Schwartz, The Week US Published
-
Menendez convicted of bribery, fraud, and extortion
Speed Read The New Jersey Democratic Senator was found guilty in a federal corruption trial
By Rafi Schwartz, The Week US Published