Small Business to Advocate for Tax Reform on Small Business Day

Date: March 10, 2020

Small Business Day at the Capitol Opportunity to Share Small Business Stories

Small business owners from across Kansas will gather in Topeka for NFIB’s Small Business Day on March 11. One of the biggest issues small business face in Kansas is a major tax disadvantage.

In 2017, President Donald Trump signed the Tax Cut Jobs Act into law, which has been a boon to many small business owners across the country. Section 199A of the law, the small business deduction, allows small business owners that are organized as pass-throughs to deduct 20% of their qualified business income from an S-Corp, LLC, sole proprietorship, or partnership. Most small business owners say it’s critical for their companies, with 42% saying it is “very important” and 30% saying it’s “somewhat important.” You can lean more about the deduction and how it’s benefiting small business here. A new NFIB poll found that 65% of small business owners say the Tax Cut Jobs Act positively affected their personal tax liability and 54% saying it had a positive effect on their business. You can find that new poll here.

However, small business owners in Kansas have NOT seen these benefits. That’s because Kansans cannot itemize income dedications on state returns and take a higher standard deduction on federal returns. That has resulted in many small business owners in Kansas not only left out on tax breaks, but getting slapped with a higher tax bill. Kathy Peterson of Heartland Seating paid $5,000 more for tax year 2018. The Shawnee small business owner had planned on hiring a salesperson in January of 2019, but she had to put that hiring off. Kathy’s small business, which sells bleachers, employs 15 Kansans right now. Kathy wants to hire at least two more workers – but she can’t because she owes the government so much more money. Kansas’ bad tax policy is prohibiting Kathy from growing her business and employing more Kansans. Last year, lawmakers passed legislation that would decouple the state from federal tax code, however, Gov. Laura Kelley vetoed that bill. On Small Business Day, Kathy will be asking her lawmakers to again bring up legislation that would decouple Kansas from the federal changes made in the Tax Cut Jobs Act.

 

Kathy Peterson of Heartland Seating says Kansas’ bad tax policy is costing her thousands of dollars and the opportunity to grow her Shawnee business. 

 

Kansas’ legislative session started January 13th and lawmakers have been busy as they work their way through legislation that could have a big impact on small business. NFIB’s top legislative issues this year include property tax reform, protecting small business from bogus litigation, and opposing employer mandates such as a minimum wage increase and paid leave. You can read more about the issues here.

“Kansas needs to get with the program and allow hard working, job creating Kansas business owners to benefit the way many other small business owners across the country are benefiting under the Tax Cut Jobs Act. Many small business owners in Kansas are being stifled by high tax bills and denied the opportunity to grow, hire more workers, and keep the Kansas economy strong. Small Business Day is the perfect opportunity for our small business owners to share their stories with lawmakers and explain how this bad policy is holding our state back,” said NFIB State Director in Kansas, Dan Murray.

 

NFIB Small Business Day at the Capitol

Wednesday, March 11, 1-3 p.m.

Kansas State Capitol, Room 281-N

 

 

Related Content: Small Business News | Kansas

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