Economist surprised Trump-era tax break survived Biden budget plan


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."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

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.
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 social media is obsessed with cortisol
In The Spotlight Wellness trend is the latest response to an increasingly maligned hormone
-
Peter Mandelson called Epstein his 'best pal' in birthday note
Speed Read The UK's ambassador to Washington described the late convicted paedophile as an 'intelligent, sharp-witted man'
-
A Spinal Tap reunion, Thomas Pynchon by way of Paul Thomas Anderson and a harrowing Stephen King adaptation in September movies
the week recommends This month's new releases include 'Spinal Tap II,' 'One Battle After Another' and 'The Long Walk'
-
House posts lewd Epstein note attributed to Trump
Speed Read The estate of Jeffrey Epstein turned over the infamous 2003 birthday note from President Donald Trump
-
Supreme Court allows 'roving' race-tied ICE raids
Speed Read The court paused a federal judge's order barring agents from detaining suspected undocumented immigrants in LA based on race
-
South Korea to fetch workers detained in Georgia raid
Speed Read More than 300 South Korean workers detained in an immigration raid at a Hyundai plant will be released
-
Why are Trump's health rumors about more than just presidential fitness?
TODAY'S BIG QUESTION Extended absences and unexplained bruises have raised concerns about both his well-being and his administration's transparency
-
DC sues Trump to end Guard 'occupation'
Speed Read D.C. Attorney General Brian Schwalb argues that the unsolicited military presence violates the law
-
RFK Jr. faces bipartisan heat in Senate hearing
Speed Read The health secretary defended his leadership amid CDC turmoil and deflected questions about the restricted availability of vaccines
-
White House defends boat strike as legal doubts mount
Speed Read Experts say there was no legal justification for killing 11 alleged drug-traffickers
-
Epstein accusers urge full file release, hint at own list
speed read A rally was organized by Reps. Ro Khanna and Thomas Massie, who are hoping to force a vote on their Epstein Files Transparency Act