Tax relief at both the state and federal levels are top priorities for small business owners.
AUSTIN (April 22, 2024) – In a conversation with Brad Swail on the Texas Talks podcast, NFIB State Director Jeff Burdett highlighted the various issues small business owners in Texas are tracking at the state and federal levels, including the need for inventory tax relief and making the 20 percent Small Business Deduction permanent.
When asked about NFIB’s recent report, which found small business optimism has reached its lowest level since 2012, Burdett noted that uncertainty is exacerbating the challenges job creators face.
“These businesses circle the wagons and try to deal with what you’ve got in front of you, but it’s very difficult to try to predict the future. Small businesses need to have an environment where they have low regulation that is consistent and fair. And you need a tax environment that is lightly taxed, that is fair, and that is consistent going forward.”
Pointing to the passage of the Texas Regulatory Consistency Act as a recent victory for Main Street in Texas, Burdett highlighted how the bill reduces the regulatory and compliance burden for small business owners:
“It was a great bill, HB 2127, by Representative Burrows and Senator Creighton. And what it did was provide regulatory consistency by preempting some of the local regulations in areas where the Texas Legislature or the federal government regulations were already in place.”
Warning against a federal tax hike on small businesses in 2025, Burdett noted the bipartisan support among the Texas Congressional Delegation for making the 20 percent Small Business Deduction permanent.
“At least 80 percent of our businesses here in Texas will face a 20 percent tax increase in 2025 if the Small Business Deduction isn’t made permanent. It’s got bipartisan support, Congressman Henry Cuellar is one of the primary authors of this bill. We’ve got to get that across the finish line before the 2025 expiration. Small businesses already operate on thin margins, and a 20 percent tax increase would devastate them. This is our number one issue at the federal level.”
Finally, Burdett reiterated NFIB’s support for reforming the state’s inventory tax, which is a costly tax shouldered by Texans.
“The Governor and Lt. Governor have both talked about raising the exemption to $100,000. That would certainly make a dent. If your business involves machine parts or you do anything that requires you to hold a lot of inventory, you’ve paid for the raw materials, you’ll pay a sales tax. It’s a tax on tax on tax. We think it’s something all of our businesses want to see go away or amended in some way.”
CLICK HERE to listen to the full conversation.
