Dear NFIB Member:
Tax reform is NFIB’s biggest priority, and we’re working hard to ensure that every small business gets a substantial tax cut. Last week, Congress and the White House unveiled their framework for tax reform. This is the beginning of a long process, but you can be sure that NFIB will be there to represent your interests every step of the way.
The last time Congress reformed the tax code was 1986. I worked for President Ronald Reagan at the time, and I had a front-row seat to one of the most important policy reforms in history. Very few people outside of the Oval Office believed that tax reform was possible. Then, as now, there were myriad interest groups all seeking to preserve or secure special favors in the tax code. The President knew that the best way to unleash the economy was to simplify the tax code, bring down rates, and allow individuals and businesses to decide how best to invest their money. That tax reform led to the creation of 20 million new jobs, something we haven’t seen since.
President Reagan and congressional leaders got it right then. That was 31 years ago. Since then the tax code has become a tangled mess, with more than 70,000 pages, higher rates, and countless special provisions. We may not have another chance to fix the tax code for a long time, so we must get it right this time.
The top rate for large corporations is currently 35 percent. The top rate for pass-through firms, which means most small businesses, is 44.3 percent. NFIB is pushing to make sure small business is treated fairly so that all small businesses, no matter what rate they pay today, will get a tax cut.
NFIB is educating policymakers, journalists, and the public on how small businesses work. Many still confuse profits with personal income. They don’t understand that small business owners who make a profit reinvest that money back into their businesses. It’s their working capital, and it’s what they use to pay employees, buy equipment and supplies, and grow the economy.
The next few weeks are crucial. We’ll be working closely with Congress and the White House to ensure that tax reform starts with small business. They create half the jobs and half the GDP. Ninety-nine percent of all U.S. businesses are small businesses, and three quarters of them file as individuals, not as corporations. If the purpose of tax reform is to boost the economy, then it must focus on small business—the engine of the economy.
You can help your own cause by visiting our take action page to contact your legislator. The more Congress hears from small business owners, the more likely tax reform will reflect your priorities. In the meantime, please visit our website often to keep up with the latest developments.
As always, thank you for your NFIB membership.
Juanita Duggan, NFIB President and CEO