Small Business Needs Tax Reform Too
NFIB Teams with Wyden and Tiberi to Make the Case for Comprehensive Reform
Washington, D.C. – The President and CEO of the National Federation of Independent Business (NFIB) and small business owners joined U.S. Senator Ron Wyden and Congressman Pat Tiberi today to explain why Democrats, Republicans and businesses of all sizes stand to gain from comprehensive tax reform. Tiberi – a Republican from Ohio – chairs the House Ways and Means Subcommittee on Select Revenue Measures. Wyden – a Democrat from Oregon – chairs the Senate Finance Subcommittee on Trade, Customs and Global Competitiveness.
“Tax reform needs to be on the table because it is a proven tool for generating jobs and economic growth. But let’s not leave any business behind,” said Wyden. “Small business is the engine driving our economy. Helping them grow and reach new markets isn’t just an opportunity for bipartisan common ground -- it’s the single best way this Congress can create new jobs.”
“As has been clearly demonstrated today, comprehensive tax reform must include individual tax reform, to ease the burden on America’s job creators. Small businesses are the driving force behind the economy and reforming the tax code to empower small businesses to grow and create jobs will help bring back our economy,” said Congressman Tiberi. “Now is the right time to move forward with reform and I’m willing to work with members from both sides of the aisle, in both the House and the Senate to create a tax code that is simpler, more fair and encourages economic growth and job creation.”
“If we want to improve the competitiveness of the overall economy, it must include small businesses. Congress needs to focus on the tax rates and issues confronting them,” said Danner. “This includes keeping individual tax rates low and reducing the complexity in the current tax code.”
Small businesses account for nearly 50 percent of both U.S. GDP and employment and are responsible for 64 percent of the net new jobs created over the last 15 years. According to NFIB’s most recent survey of “Small Business Problems and Priorities,”* small businesses identify the federal tax code, its overall complexity and other tax-related challenges as four of their top ten biggest concerns. Yet, recent tax reform discussions have focused almost exclusively on the corporate code, which, as NFIB reports, would not help nearly 75 percent of small businesses because they organize as pass through businesses – S Corps, LLC, LLP and Sole proprietors – and are therefore subject to the individual tax code.
The press conference participants identified the Tax Reform Act of 1986 as a model for bipartisan tax reform. More than 6.3 million new jobs were created in the two years that followed the ’86 reform, which eliminated specialized tax breaks and loopholes to simplify the code and hold down rates for everyone.
To read what small businesses are saying about tax reform efforts click here.
* NFIB: “Small Business Problems and Priorities” http://www.nfib.com/Portals/0/ProblemsAndPriorities08.pdf
NFIB Small Business Facts: http://www.411sbfacts.com/speeches.html