Small Businesses Support Bipartisan Efforts to Reform the Tax Code
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, urging the Senate to advance a bipartisan tax deal that includes multiple provisions needed to support tax equity
“We are pleased the U.S. House of Representatives passed the ‘Tax Relief for American Families and Workers Act,’ a bipartisan package that expands the child tax credit (CTC) and reinstates policies needed to support business growth, tax fairness and simplicity. We urge the U.S. Senate to do the same and send this legislation to President Biden for his signature.
In addition to boosting the CTC to bolster the economic fortunes of the most vulnerable Americans, the package includes provisions that will deliver real benefits to small businesses, including expanding the Section 179 business deduction, which particularly helps small firms; restoring the research and development tax credit through 2025; and increasing the 1099 reporting threshold.
This bipartisan effort is a critical next step to providing support for small businesses; however, with many 2017 business-related tax provisions expiring at the end of 2025, Congress must consider additional ways to level the playing field. These include reforming the 199A pass-through deduction, which is disproportionately concentrated to benefit the wealthiest business owners. Based on 2022 Tax Policy Center data, almost three-quarters of the total dollar benefit of 199A flows to just over 4% of pass-through businesses, and nearly 60% of the total dollar benefit flows to just 1.6% of pass-through businesses.
The majority of small businesses feel the tax code unfairly benefits large corporations over small businesses and want large corporations and wealthy Americans to pay their fair share of taxes. As such, we will continue to push for solutions that will modernize the tax code and level the playing field.”
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.