NSBA Testifies on Tax ComplexityJuly 24, 2019
On Wednesday, July 24, NSBA’s past-chair Grafton “Cap” Willey of Rhode Island testified before the House Committee on Small Business on how the Tax Cuts and Jobs Act is impacting America’s small businesses. An expert with 47 years of dealing with small business taxation issues, Willey indicated the new tax law, while it did make some important cuts, overall increased complexity for small businesses and their tax practitioners.
“There are some good things in the legislation, there are some bad things in the legislation,” stated Willey, “And while I think it’s overall impact is positive, there is no question that more should be done to ensure simplification, fairness and long-term sustainability.”
Willey went on to highlight a number of key fixes he recommends to the law, including:
- Significant tax simplification;
- Make permanent the small-business and individual rate cuts;
- Ensure true parity between corporations and the majority of small businesses which file as passthrough entities;
- Close the state and local tax (SALT) limitation;
- Make permanent the Sec. 179 expensing provisions passed under the Tax Cuts and Jobs Act;
- Maintain and make permanent the R&D tax credit; and
- Make permanent the increased estate tax and AMT exemption.
“While these and other fixes are important, small business is also very concerned about the national debt,” Willey said in closing. “Policymakers have talked about the debt and deficit for years, but nobody seems to take it seriously. This is an issue that needs to be dealt before it’s too late.”
Click here to read Willey’s full testimony.