National
Federation of Independent Business (NFIB) Research Director Holly Wade testified
Wednesday, April 15, 2015 before the Joint Economic Committee on how federal
taxes affect the small business sector.
“We
survey small business owners every month to identify their concerns and taxes
consistently rank at the top,” said Wade.
“Small business owners employ more Americans. They produce the largest share of GDP and
they pay the biggest share of taxes. So
this is a very important economic issue and I’m looking forward to the
hearing.”
Joining
Ms. Wade was Ohio businessman Scott Lipps, who told the House Small Business
Committee today that the federal tax code is a liability for his small firm and
that Congress should fix the system with an eye toward lower rates, fewer rules
and equal treatment for small business owners who worry that reform will leave
them behind.
“Should Congress enact comprehensive tax
reform that achieves these goals, small business owners would no longer face
one of their most consistent complaints, which include arbitrary and
inconsistent tax preferences, constant change and complexity in the current
federal code,” he said.
Mr.
Lipps, who owns Sleep Tite Mattress Factory and Showroom in Franklin, Ohio, was
one of several witnesses whom the Committee invited on the day that Americans
must file their federal taxes. Congress,
he said should seek to reform the IRS Code with several goals in mind: 1) permanently low rates; minimal
disparity between the corporate rate and individual rates; much less
complexity; pass-through treatment for business income.
“NFIB members are willing to cap or eliminate tax preferences like the mortgage interested deduction, employer provided health insurance exclusion, total deductions, tax exempt municipal bonds, and the production tax credit in order to lower the individual income tax rates,” he said. “But keep in mind that our income is our capital, so every dollar that we have to send to Washington is a dollar that we’re not investing in our businesses or in our communities.”
The President’s budget calls for a reduction on corporate tax rates in exchange for closing certain loopholes. So far, however, he’s been unwilling to discuss changes on the individual side of the code where most small businesses file their taxes. To exclude small business from the reform would be unfair, said Mr. Lipps, and it would also be unwise.
“Small business owners create more jobs than the corporations and they generate a larger share of the national wealth,” he said. “If the goal of tax reform is to grow the economy, spread prosperity and make the United States more competitive, then you should be focused on the small business side of the code as well.”
You can read more about the House Committee on Small Business here: http://smallbusiness.house.gov/
Scott Lipps’ testimony: http://smallbusiness.house.gov/uploadedfiles/4-15-2015_lipps_testimony.pdf
The NFIB/Ohio member profile on Sleep Tite can be found here: https://www.nfib.com/article/sleep-tite-mattress-factory-owner-serves-nfib-and-community-67212/
