Measure Could Help Small Businesses Save Big
A measure introduced earlier this year by Rep. Vern Buchanan (R-FL) is gaining support among the small business community for its focus on reducing tax costs for businesses. The Hill reported that the measure is designed to “lower taxes for pass-through businesses that pay a rate of more than 35 percent, and it is designed to make sure that small businesses don’t pay higher tax rates than corporations in the future.” This is key, because currently small businesses are often “pass-through” businesses that have their income “taxed at individual income tax rates” that could reach as high as 39.6 percent. NFIB Vice President for Government Relations, Amanda Austin, said in a letter to Buchanan, “The high tax burden currently facing small businesses holds back investments, growth, hiring, and entrepreneurship.” NFIB has weighed in in favor of Buchanan’s proposal, with NFIB President and CEO Juanita Duggan saying, “We are grateful to Congressman Buchanan for introducing the Main Street Fairness Act, and we strongly urge that it become a central feature of comprehensive tax reform in the next Congress.” Buchanan is continuing to advocate for his tax overhaul plan in Congress. In recent comments he said, “It’s absurd that small businesses face a higher tax rate than ExxonMobil. We have to level the playing field as part of tax reform.” For its part, the House may take up the issue on the Ways and Means Committee, as it is “working to create legislation based on” tax reforms found in Buchanan’s bill.
What This Means For Small Businesses
Small business owners know that taxes can take a huge chunk out of their profits, making it difficult to sustain their businesses, let alone expand. Buchanan’s proposal for reducing “pass-through” business taxes would be a step in the right direction towards relieving the high tax burden small businesses face.
Additional Reading
Florida Politics also covered Buchanan’s tax reform bill.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
