Editor, Casa Grande Dispatch:
Across the U.S., real estate partnerships paid nearly $30 billion in wages in 2018. They created construction jobs, funded affordable housing projects and senior centers, built multifamily units and office buildings. Importantly, these developments come at a time when housing and property is becoming more scarce and prices are rapidly rising.
Raising taxes on them will mean less housing, less property for small businesses and higher costs — but some lawmakers in Washington have proposed exactly that.
These politicians, including Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio Cortez, D-N.Y., hope to insert a new Small Business Investment Tax into the American Families Plan, the $3.5 trillion bill intended to fortify our nation’s human infrastructure.
This new tax is supposed to target big investors, but that’s not who will be hit the hardest. Instead, small partnerships that build up our communities through private investment will have the rug pulled out from under them because this new tax would apply retroactively to current business agreements.
Here in Pinal County these partnerships help fund real estate construction that provides new housing and new jobs to local workers. These projects and jobs also contribute to our local tax base, helping to pay for vital services like public safety and education. This tax increase won’t hurt Joe Billionaire; it will hurt our downtown!
Our Sens. Sinema and Kelly have already voiced their support for the American Families Plan and I applaud them for it. The bill represents a massive investment in people and communities. But private investment plays an important part too. Our tax code should encourage private investment and economic growth. Say no to the Small Business Investment Tax.