March 22, 2018
Washington, DC (March 22, 2018) – Republican leaders talking about a new round of tax reforms should focus on a permanent tax cut for Main Street small businesses, a higher income threshold, and relief for professional service providers who were excluded last time, said the Job Creators Network (JCN) today.
“The Tax Cuts and Jobs Act is a major improvement, but there is more work to be done,” said Alfredo Ortiz, JCN President and CEO. “We are grateful to the Republican majorities and the President for passing the law, and we’re highly encouraged that President Trump and House leaders are talking seriously this week about expanding it.”
Ortiz said “Phase 2” should make the business income deduction for Main Street small businesses permanent.
“They had to make it temporary to get it through reconciliation, but that needs to be corrected,” he said.
The deduction should be increased from 20 percent, and the income threshold, now set at roughly $300,000, should be raised, according to Ortiz.
“They whittled down the deduction to get a better CBO score, and they limited the benefit to the smallest firms,” he said. “Those are extremely positive changes, but they limit the number of small businesses that benefit.”
Finally, professional service firms that are excluded from the deduction should be eligible for the same tax cut from which other types of small businesses benefit, said Ortiz.
“The same tax cuts that benefit local the manufacturer should be extended to the local dentist, accountant, architect, and other local service providers,” he said. “Those are small businesses that employ Americans and contribute to the economy. The tax code should not pick winners and losers.”
For more information about Job Creators Network, please visit www.jobcreatorsnetwork.com.