This summer, Congress is finally beginning to discuss revamping the 73,954-page U.S. tax code. NFIB has long advocated for comprehensive tax reform, and it sounds as though lawmakers understand the necessity of creating a workable tax system.
For Washington in particular, however, it is important to focus on specific objectives in order to achieve success. This is why your voice is critical and why NFIB has launched the Coalition for Fair Effective Tax Rates. By drawing lawmakers’ attention to a simple concept, we believe that small business concerns will be addressed during the tax debate.
What is your “effective” tax rate? It is the actual dollar amount on the check you write to the government to pay your tax bill. The Coalition for Fair Effective Tax Rates is sending an unmistakable signal to Washington that for successful tax reform, at the end of the day, it is what you pay.
Is it fair that your effective tax rate is often much higher than many big international companies just because you choose to file your taxes as an individual? Certainly not.
Is it right that there exists a major disparity between the tax rates assessed on one industry over another? Absolutely not.
But the aptly named “code” is so befuddling and riddled with carve-outs, handouts and bailouts for special interests who game the system that it has become a treacherous path for our economy.
When government deliberately punishes job-creating small businesses while bestowing favors on others who take advantage of the law to their particular advantage, the entire structure is weakened.
Fair and comprehensive tax reform must result in lower effective tax rates. The Coalition for Fair Effective Tax Rates will insist on that because it represents not just small firms, but larger businesses that share common ground with you. They too agree that the current tax system is not just broken, but almost beyond repair.
Meaningful tax reform won’t be an easy fight. Already several members of Congress have advocated raising taxes as a key component of tax reform.
That completely misses the point. Tax reform should simplify the code and lower the amount you pay so you can direct that time and money into growing your business and creating jobs.
How’s your bottom line? It could see great improvement with meaningful tax reform that delivers fair effective tax rates.
Your bottom line—and the future of your business--is at stake in this fight. Don’t sit on the sidelines. Your support is crucial. Tell Congress that effective rates matter and that tax reform can't ignore small business.
President and CEO, NFIB
Watch: NFIB's Dan Danner Calls Out Grand Bargain on Fox Business