Tax Reform Bill a Mixed Bag for Small BusinessNovember 2, 2017
FOR IMMEDIATE RELEASE
Thursday, Nov. 2, 2017
Washington, D.C. – The National Small Business Association (NSBA) welcomes the introduction of broad tax reform which was unveiled today. The Tax Cuts & Jobs Act (TCJA , H.R. 1) would make sweeping changes to the tax code and reduce corporate and individual tax rates. While the proposal includes many positive changes for small businesses, it falls short of ensuring small-business tax parity with large corporations.
Below, please find a statement from NSBA President and CEO Todd McCracken.
“America’s small businesses deserve a tax code that embraces parity for all types and sizes of businesses, is comprehensible and user-friendly, and ensures our nation’s long-term economic stability. While H.R. 1 does bring down the top tax rate for small businesses, it maintains a disparity where pass-through entities—which comprise 83 percent of small firms—would be subject to a tax rate higher than the rate for large corporations.
“We are pleased to see that current expensing provisions for smaller companies—which are permanent—were not changed or phased-out, and that smaller businesses will still be able to deduct their interest expenses, a significant and necessary business expense for many.
“The TCJA makes important steps forward in easing complexity: reducing the number of tax brackets, eliminating the Alternative Minimum Tax, and ultimately eliminating the Estate Tax.
“Unfortunately, significant, important questions remain on how pass-through entities’ income will be taxed for business vs. compensation purposes which could increase the tax rate disparity and create a new layer of complexity for the majority of small-business owners.
“Today, we have the first real chance for broad tax reform in a generation, and while this bill isn’t perfect, it deserves thoughtful consideration. Lawmakers should commit to supporting tax reform that ensures small-business parity, simplifies the system and provides long-term economic stability.”
Celebrating 80 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.