March 15, 2017
Atlanta—Today the Job Creators Network (JCN) released a full-page ad in The Hill highlighting the Bring Small Businesses Back Tax Reform Act (H.R. 1425)—introduced last week by U.S. Representatives Randy Hultgren (IL) and Jason Smith (MO). The legislation would reduce the tax burden on the nation’s largest job creators—small businesses.
View the full-page ad here.
The ad portrays an hour glass counting down the first 100 days of President Trump’s administration and urges for the passing of the Bring Small Businesses Back Tax Reform Act. It states “Easing the tax burden on small businesses to allow them to expand, hire, and reinvigorate Main Street is legislation everyone can support.”
The BSBB Tax Reform Act would:
- Lower the tax rate for small businesses’ first $150,000 of income to 12 percent and to 25 percent for all income above that threshold.
- Allow small businesses to immediately expense all investment in equipment.
- Permit small businesses to defer income declaration until payment is actually received.
American small businesses need these tax reforms now. Small business expansion has slowed to a crawl and the number of new entrepreneurs attempting to open a business has declined—with the number of businesses less than a year old falling by one-third since the 1980s. The engine of small business job creation is idling and to kick-start it we need to focus on reforms, such as this legislation, that will target the majority of small business job creators.
Seventy percent of small businesses do not pay taxes at the corporate rate. They are structured as sole proprietorships, partnerships, or S-corps and the profits they make are “passed-through” to the owner and counted as individual income on their tax returns. These entrepreneurs can pay federal tax rates as high as 40 percent. This is why it is so important to address the rate at which specifically small businesses—or “pass-throughs”—pay taxes.
“This full-page ad in The Hill highlights legislation that will relieve some of the tax burden that is levied onto our nation’s small businesses by the federal government,” said Alfredo Ortiz, President and CEO of the Job Creators Network. “Although corporate tax reform is a worthy goal, small business tax reform is of much more immediate importance because, unlike big corporations, small businesses don’t have the resources to mitigate the negative effects of high taxes.”