Pass-through tax reduction is essential for Utah small businesses
SALT LAKE CITY, Utah, Nov. 17, 2017—The National Federation of Independent Business today called on Utah U.S. Senators Orrin Hatch and Mike Lee to support the U.S. Senate’s tax reform bill, the Tax Cuts and Jobs Act.
“The Senate’s plan for tax reform will undoubtedly strengthen our economy and empower the small-business sector,” said Candace Daly, NFIB’s Utah state director. “Not only will it create a tax deduction of 17.4 percent for pass-through businesses with less than $500,000 in income, it will also allow service providers like plumbers and electricians to benefit from this substantial tax reduction. Small businesses have been crying out for tax reform for decades. We would hate to see Congress fail to seize this historic opportunity for real, lasting, and beneficial change.”
A vote on the tax bill is expected before the end of the year. Daly pointed out that 99 percent of businesses in Utah are small businesses, and three-quarters of those are organized as pass-throughs, which pay tax on business income at the pass-through tax rates and not at the corporate tax rate. Such entities include any company that is organized as a sole proprietorship, a partnership, LLC, or S Corporation.
“Tax reform is imperative for Utah small businesses, and we are counting on our senators to support the measure,” Daly said. “This bill ensures that tax-reform benefits will extend beyond large corporations and provide relief to those organized as pass-throughs, as well. The millions of independent, small businesses that form the backbone of our economy would finally see a tax reduction thanks to the Tax Cuts and Jobs Act.”
More information about NFIB’s position on tax reform can be read here.
With 350,000 dues-paying members nationwide, including 3,500 in Utah, NFIB is the nation’s largest and leading small-business association. You can follow NFIB/Utah on Twitter, NFIB_UT, or on its webpage, www.nfib.com/utah.
For 74 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. 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/Utah
1296 West 475 South
Farmington, Utah 84025