Taxes
Taxes that are too high, and a system that is ridiculously complex, stand in the way of small business growth. According to NFIB's 2008 Small Business Problems & Priorities Survey, four of the top ten ranked problems were tax related. NFIB fights for small business tax relief at the state and federal levels, because we know that a complex tax code and burdensome taxes are among the biggest challenges facing small business owners. NFIB has achieved significant victories for small business, including the reduction of federal income-tax rates and an increase in the expensing limit for small businesses. NFIB is committed to making these changes permanent and securing more tax relief, so small businesses can have the consistency they need to achieve optimum growth for their own businesses and for the economy as a whole.
NFIB supports low tax rates so that small business owners keep more of their money to reinvest in and grow their business.
NFIB supports full and permanent repeal of the estate tax.
NFIB supports clearly defining who is an independent contractor. The current 20 common-law factor test for determining who is an employee vs. an independent contractor has handcuffed small businesses.
NFIB strongly supports H.R. 1836, the Small Business RELIEF Act, which provides a six month payroll tax holiday for small business owners.
NFIB supports permanent increases to Section 179 expensing limits. The current expensing limits - increased in 2007 to $125,000 (with an annual inflation adjustment) - are set to expire in 2010.
NFIB supports providing tax equity to the nation's self-employed by expanding the deductibility of health insurance to apply to employment taxes, so that all who purchase their own health insurance receive a 100 percent tax deduction.
The tax code is too complicated and taxpayer mistakes and errors would be substantially mitigated if the tax code rules were easier to read and follow. NFIB believes that simplifying the tax code - and not placing new reporting burdens on small businesses - is the best way to reduce the tax gap.
NFIB believes the Alternative Minimum Tax must be repealed. This unfair tax was originally designed to ensure the wealthiest Americans paid their fair share of taxes. Now, increasing numbers of middle-class taxpayers are socked with hefty bills each April.