Dear NFIB Member:
Late last week, the U.S. Senate passed the Tax Cuts and Jobs Act, a major tax reform plan that would save the typical small business thousands of dollars per year. It’s a landmark moment for NFIB members, who have made it clear that tax reform is their top priority.
Tax reform has taken many turns over the last few months. It started with a U.S. House bill that NFIB was unable to support, as it did not provide real tax relief to enough small businesses. After NFIB expressed our concerns about the measure, we worked with House leaders to expand tax relief for small businesses, which the legislation now does.
The amended House bill, which passed several weeks ago, creates a 9 percent tax rate on the first $75,000 of pass-through income for businesses earning less than $225,000 in taxable income. That will put money back into the pockets of NFIB members, helping you grow your business. The Senate bill, passed last week, allows pass-through filers to deduct 23 percent from their taxable income, which would be a substantial tax cut for the overwhelming majority of small businesses. Small businesses that are incorporated will get big relief too—both bills have a 20 percent tax rate for C-corps.
Both chambers of Congress must now reconcile their respective plans in a single piece of legislation that will have to pass the House and Senate before it can be signed into law by the president. There’s still more work to be done, and NFIB will continue to represent you. These tax cuts will give you some much needed relief and allow you to invest in new equipment, more inventory, more jobs, and higher wages.
The support of NFIB and our members has gotten lawmakers’ attention. Congressional leaders know that small business support is critical, and the thousands of letters you sent your elected representatives were instrumental in getting to this point. Big business has teams of lobbyists looking out for its interests. Through NFIB, you have a voice too. Our policy team has worked hard to make sure that tax reform starts with small business, and we’re proud of our progress so far on getting that result for you.
Congress is on the verge of passing one of the largest tax cuts in history. Regardless of which elements make it to the president’s desk, there is an excellent chance that small business owners could see tax reform before the end of the year.
Your NFIB membership has made all of this work on tax reform possible. Being a member of NFIB is an investment in your business and in the future of our country. We’re proud to be the voice of small business and look forward to our continued work together.