Kevin O’Leary, a star of “Shark Tank,” expressed concern over a proposed bill backed by President Trump. He pointed out that sections concerning small business tax audits might lead to “valuation confusion.”
Allley, a proponent of Trump’s economic policies, shared his thoughts with Fox Business host Maria Bartiromo, stating, “It feels almost unjust and un-American to treat small businesses this way.”
He raised issues related to employee retention credits (ERCs), which are intended to assist businesses in keeping their employees during the COVID-19 crisis.
The bill is currently under discussion among House Republicans. Some argue that with heightened IRS scrutiny of tax credits, the aim is to curb fraud associated with the costly program.
O’Leary remarked, “I look at these bills from the perspective of small businesses. If the IRS applies an ERC, it could have the authority to audit small and medium-sized enterprises for up to nine years, leading to significant disruption.”
He suggested that many may not have fully reviewed the bill, noting his intent to advocate directly with lawmakers.
“I’m heading to the Hill tonight and I’ll be asking, ‘What’s going on here?’” O’Leary told Bartiromo. “This needs to be addressed within the framework of a big, beautiful bill because it’s not looking beautiful for small businesses.”
O’Leary criticized the proposal for empowering the IRS in a way that complicates matters for small businesses.
“Who wants to deal with that? What’s the Republican aim here?” questioned O’Leary.
Advocates for enhanced scrutiny of the ERC program argue that it has been plagued by scams, resulting in costs exceeding initial estimates and freeing up funds for other aspects of Trump’s broad policy initiatives.
A report from the Bipartisan Policy Center indicated that the expansion of the ERC in 2021 followed an aggressive marketing campaign that led businesses to avail themselves of the credits.
“The total cost projected for the credit was initially $50 billion; now, it’s expected to surpass $550 billion,” an analyst from the Center noted in a previous report.
