Washington, D.C.—Today, the House Ways and Means Committee added an amendment to the Tax Cuts and Jobs Act, creating a new 9 percent tax rate for very small businesses. The rate applies to the first $75,000 of earnings for businesses with a maximum of $150,000 of annual total earnings. Special lower business tax rates would phase out completely at $225,000 of business income. The new measure will allow small businesses to keep even more of their hard-earned cash to invest in more employees, higher wages, and business expansion.
Alfredo Ortiz, JCN President and CEO, released the following statement:
As anticipated, improvements to the bill were proposed that enhance its appeal even further for Main Street small businesses. We were pleased to see the amended rates at lower business income levels, but also importantly, the inclusion of businesses of all types up to the $150,000 business income threshold—phasing out at $225,000. We are encouraged to see other groups such as the NFIB now supporting the bill and applaud their efforts to work together to push for better legislation. We need to continue to cooperate and push for the bill’s passage through the House and work in conjunction with the Senate to get legislation on the President’s desk by Christmas.
The amendment comes on the heels of JCN presenting Speaker Paul Ryan with over 165,000 petitions, which represents more than 500,000 letters sent to Congress in support of tax cuts. This was part of a JCN sponsored event that brought together small business owners, political leaders, and members of the public to support the house version of the Tax Cuts and Jobs Act—which has now been improved further.