NFIB will continue its opposition battle now that HB 1420 has been sent to the Senate
DENVER, June 11, 2020—From Tony Gagliardi, Colorado state director for NFIB, on this afternoon’s passage of House Bill 1420.
“Small businesses across Colorado were sorry to see the un-Fair Tax Act pass the House of Representatives. We hope senators search their conscience and do the right thing by killing HB 1420. What kind of message do Colorado legislators think they’re sending by hitting the very small-business owners they want and need to re-start our economy with a tax increase?”
HB 1420 will first need a committee hearing in the Senate, then pass a second reading, and then a third reading by tomorrow, June 12, at midnight.
The Economic Damage
If passed by the Senate and signed by the governor House Bill 1420, the misnamed ‘Fair Tax Act,’ would de-couple state tax calculations from your federal calculation by prohibiting future use of the 199A small-business tax deduction of 20% of business income. A deduction that had led to record highs in hiring, worker pay, and business expansion — pre-coronavirus. For tax year 2019, the federal qualified business income (QBI) threshold (for the 20% deduction – regardless of industry) is $160,700 individual/$321,400 joint. If Colorado lowers these thresholds, that would be devastating to smaller businesses.
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NFIB is the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.nfib.com/Colorado.
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