[jandrewrogers]

It fundamentally changes the cost structure and investment risk profile of business plans without changing anything about the intrinsic economics of the business by requiring much more capital to achieve the same outcome. A perfectly reasonable business plan can suddenly become non-viable if there is a huge new overhead to doing business. Suddenly needing to pay $1M to the IRS on "profit" for a company that is barely making money is rather large change to the financial assumptions that make the business viable.

Affected small businesses suddenly need to increase revenue or cut costs by 20% just to keep their business solvent. Most small businesses do not have the structural elasticity or capital reserves to absorb that, nor do many business plans. In the very long term it notionally all evens out but most small businesses don't survive that long and these large new costs of doing business will reduce the survival rate even further.