News Release--Small business, state’s biggest job-creator, once again left holding the bag
SALEM, Ore., Feb. 23, 2018—The following comment was issued by Anthony Smith, Oregon state director for the National Federation of Independent Business, following today’s vote on Senate Bill 1528, which increased taxes on small business by more than $1 billion over six years.
“Oregon was a pioneer in recognizing the importance of providing tax relief to small businesses when it created the Small Business Tax Cut as part of the ‘Grand Bargain’ in 2013 – a similar policy to the new federal policy. However, the Oregon policy is much more exclusive than the new, inclusive federal policy that allows a 20 percent deduction for S-corps, LLC’s, partnerships, and sole proprietorships, with very few exceptions.
“In 2016, about 22,000 Oregon tax filers were qualified to use Oregon’s Small Business Tax Cut. But according to the U.S. Small Business Administration, there are over 357,000 small businesses in Oregon – and the overwhelming majority of them are pass-through entities. So, while some could keep their tax savings by utilizing the Oregon policy, many more would lose their 20 percent deduction by disconnecting.
“Bottom line – Oregon doesn’t need this bill to balance its budget. The Senate has chosen to take away the one part of federal tax reform that specifically benefits small businesses in Oregon, denying those tax savings to hard-working, self-employed Oregonians.”
According to the non-partisan Legislative Revenue Office, SB 1528B raises $244.4 million in 2017-19, $376.7 million in 2019-21, & $427.4 million in 2021-23, a total of more than $1 billion in additional revenue that is not part of the most recent state revenue forecast.
Celebrating its 75th anniversary, the National Federation of Independent Business has taken the message from Main Street to the halls of Congress and all 50 state legislatures since 1943. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.
National Federation of Independent Business/Oregon
3340 Commercial St. S.E. Suite 210
Salem, OR 97302