Keeping Tax Rates Low
Keeping tax rates low is important because of many of the challenges faced by small businesses. Many small businesses face a constant cash flow problem and after tax income is an especially important source of capital for small businesses. High tax rates mean less money that you have to reinvest back into your business.
For many small business owners, individual tax rates are especially important since 75 percent of small businesses are organized as pass through entities. In 2001, the NFIB fought for and won an across-the-board rate reduction for all small businesses. That law is set to expire at the end of 2010 and NFIB will continue to fight to extend those lower tax rates.