The administration's proposal would cut taxes and repeal the death tax, marking a good starting point on reform.
The White House and Congressional leaders on Wednesday unveiled a new framework for tax reform, releasing a proposal that could ultimately become the first major rewrite of the tax code in 31 long years.
Speaking in Indianapolis on Wednesday, President Donald Trump introduced what he hailed as “the largest tax cut in history,” and cited the benefits of his plan for small business owners and farmers throughout his address—mentioning the latter no fewer than five times.
“We will protect our farmers, our ranchers, and our small businesses, and we will make taxes simple, easy, and fair for all Americans,” Trump said.
The plan would set a new maximum pass-through rate of 25 percent for small business owners who file as sole proprietorships or partnerships, which represents about 95 percent of businesses in the U.S. At present, many small business owners pay a top tax rate of 39.6 percent. (Trump’s original framework included a pass-through rate of 15 percent.)
“We are grateful to the President and congressional leaders for remaining steadfast on tax reform,” NFIB President and CEO Juanita Duggan said in a statement. “We are pleased to see that the initial plan calls for reducing taxes on pass-through companies, which represent the overwhelming majority of American small businesses.”
More than 40 NFIB members, plus staff from NFIB/Indiana, attended the tax reform announcement, representing a strong voice for small business owners.
NFIB, on behalf of small business owners, has worked very closely with the administration and Congress this year to develop a new tax framework. We endorsed an initial version of the administration’s plan earlier this year and have remained vocal, including with key Senate and House legislators, about the need for tax reform to happen this year.
“This is the beginning of a long process, and we look forward to more details,” Duggan’s statement continued. “NFIB will remain engaged to ensure that tax reform starts with small business. Small businesses need meaningful reform that lowers their tax bill, allows them to invest in their business, create jobs, and grow the economy.”