Inventory tax relief and making the 20% Small Business Deduction permanent are top priorities for Main Street Texans
CONROE (April 25, 2024) – In a conversation with Lone Star Community Radio‘s ‘The Weekly Business Hour ’ host Rick Schissler, NFIB State Director Jeff Burdett discussed some of the top priorities for Texas small business owners, including tax relief on the state and federal levels.
CLICK HERE to listen to the full conversation. Excerpts are below.
During the last session, the Texas Legislature reined in property taxes. But more work remains to be done, especially on the inventory tax, Burdett said:
“One of the things we’re still looking for is inventory tax relief. That is a business personal property tax. Basically, if you took a small business, you turned it over, you shook it, everything that fell out is going to be part of that inventory tax. […] Most of that stuff was taxed on the front end; it’s all going to get taxed on the way out the door. But this is just another layer of tax that I think Texas could really work on.”
Small business owners are facing a massive tax hike in 2025 if Congress doesn’t act, Burdett warned:
“The number one issue for NFIB on the federal front is the 20% Small Business Deduction that is set to expire in 2025. This was put in during the 2017 tax cuts. The corporate tax cuts were extended permanently, but the tax cuts for small businesses, which make up 80% of businesses, are set to expire. We’ve got to get the Main Street Tax Certainty Act passed. It is a bipartisan bill. In fact, Rep. Henry Cuellar down in Laredo is one of the main sponsors of the bill. We’ve got the majority of the Texas Delegation on board. But that must get passed. Because that would be a 20% tax increase to businesses going forward after 2025. I don’t need to tell you that small businesses can’t absorb that tax hike, especially with inflation and the labor shortage challenges that we’re facing.”
CLICK HERE to listen to the full conversation.
Background:
Repealing or increasing the exemptions for the business personal property tax (or inventory tax) has long been a priority for NFIB Texas. One Houston small business owner called the inventory tax “double taxation.”
Making the Small Business Deduction permanent is the #1 priority of NFIB. The Main Street Tax Certainty Act, which has bipartisan support among the Texas Congressional delegation, would prevent a massive tax hike on more than 30 million business owners. Learn more at www.SmallBizDeduction.com
