Small Businesses to lose their 20 percent deduction, Legislature to take up tax reform for sole proprietors
FOR IMMEDIATE RELEASE
Contact: Anthony K. Smith, Oregon State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]
SALEM, Ore., April 6, 2018—Anthony Smith, Oregon state director for the National Federation of Independent Business, issued the following statement on today’s announcement by Gov. Kate Brown that she intends to sign Senate Bill 1528 and call a special session of the Oregon Legislature to make changes to Oregon’s Pass-Through Entity tax rate policy, also known as the “Small Business Tax Cut” of 2013.
“When Congress passed the Tax Cuts and Jobs Act late last year, America’s small businesses achieved a hard-fought victory that was decades in the making. Lower taxes mean more opportunities for entrepreneurs to make investments in their businesses, their communities, and their employees.
“Today’s announcement from the governor is disappointing. By choosing to disconnect from the new 20 percent deduction for pass-through business income, a key piece of federal tax reform, small businesses in Oregon will have to pay more than $1 billion in state income taxes over the next several years – tax dollars that wouldn’t have been owed, but for this tax bill.
“The governor also announced today her intention to work with legislative leaders in convening a special session of the Legislature to propose changes to the Oregon Small Business Tax Cut, specifically to address sole proprietors who were left out of the original 2013 legislation. NFIB has supported improvement in the law since then, including the addition of sole proprietors.
“We’re encouraged that the governor is interested in fixing this inequity in Oregon’s tax laws, but the exact details of the proposal will be incredibly important going forward. This could go right, but it could also go very wrong.”
For further background information, check out NFIB Leading Veto Campaign on Senate Bill 1528 story on the NFIB Oregon webpage and follow NFIB Oregon on Twitter for small-business news @NFIB_OR.
[Tile photo courtesy of Gov. Kate Brown’s Flickr page.]
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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
503-364-4450
www.nfib.com/oregon
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