November 10, 2017
Washington, D.C.—Today, the Job Creators Network applauded the direction of the new Senate tax reform bill, which – like its House counterpart – would bring long overdue tax relief and simplification to small businesses and hardworking Americans. But more can be done to help the small business backbone of the economy.
The bill calls for a new 17.4 percent small business income deduction, which would significantly reduce small businesses’ current tax burden. Professional services, such as lawyers, accountants, and consultants, are exempt from claiming this deduction, with a middle class exception.
JCN supports this deduction but calls on Congress to increase and expand it to include professional services in order to do the most good for the 85 million Americans who depend on small businesses for their livelihood.
The bill also mirrors the House tax reform bill in a number of ways that would significantly help small businesses. These include 1) the significant expansion of the standard deduction, 2) the elimination of the 15% and 28% tax brackets, 3) immediate business expensing, and 4) full business interest deductibility.
Alfredo Ortiz, JCN President and CEO, released the following statement:
The Senate tax reform bill brings long overdue relief to small businesses struggling under the current uncompetitive tax code. Small businesses, which create two-thirds of all new jobs, should thank Chairman Orrin Hatch for addressing their concerns. But more can be done to deliver small businesses the tax cut they need and deserve.
The bill creates a much needed tax deduction for small businesses, and – like its House counterpart – makes needed changes to the individual tax code to allow hardworking taxpayers to keep a little more of their earnings. While JCN supports the direction of this bill, we will work to increase the size of the small business deduction and expand it to include professional services, which are major creators of great middle class, great paying jobs.