Show notes
The economic crisis facing the nation is disproportionately hurting small businesses. Mom and pop shops are struggling to stay afloat in the face of historic levels of inflation. Against this backdrop, Democrats have proposed raising taxes on pass-through entities—small businesses including sole proprietorships, partnerships, limited liability companies, and S corporations.
To Sen. Rand Paul, R-Ky., that's just insanity.
"It's a terrible time to also talk about raising taxes," says Paul. "Businesses are reeling from the inflationary rising costs; now, they would have an additional tax."
Paul has been going around the country talking with small-business owners who want relief from inflation and high taxes.
"They're very concerned, not only with the inflationary input, but adding a tax to this when small business is tenuous, and they're still coming out of the lockdowns," he says.
The Kentucky lawmaker adds that this tax hike would have unintended consequences that Democrats aren't thinking of.
"One of the unintended consequences will be closure of businesses and increased unemployment and exacerbation of the recession," he says. "This is something that we will fight steadfastly against and do everything possible not to let this happen to the American people."
Paul warned that "if we do nothing, there's a possibility inflation gets worse. I think that's the most likely scenario. I think between now and the election, we're going to see a worsening of inflation."
Also on today's show, Heritage Foundation economics expert E.J. Antoni discusses the possible consequences of inflation on the American people and how long we might be dealing with the issue.
We also cover these stories:
- President Joe Biden has contracted COVID-19.
- The House of Representatives passes the Right to Contraception Act.
- Senate Democrats introduce a bill to end the federal prohibition of marijuana.
- The U.S. Coast Guard and local law enforcement intercept a sailboat carrying more than 150 illegal immigrants off the southern coast of Florida.
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