Today, the Job Creators Network (JCN) announced its support for the Bring Small Businesses Back Tax Reform Act (H.R. 5374), announced today by U.S. Rep. Randy Hultgren (IL), which would reduce the tax burden on the nation’s small business job creators. U.S. small businesses account for half the nation’s jobs and two-thirds of its new jobs.
The Act would:
- Lower the tax rate for pass-through businesses’ first $150,000 of income to 10 percent and to 20 percent for their first $1 million of income.
- Allow pass-through businesses to immediately expense all investment in equipment.
- Simplify cash accounting for tax purposes for all businesses with gross receipts less than $25 million.
The state of American small businesses shows these reforms are desperately needed. A national poll conducted this year by JCN shows that only one-in five small businesses plan to hire additional employees over the next year, and only around one-quarter believe that doing business over the next year would be easier than the previous one. This poor small business climate disproportionately hurts minorities, who are more likely to be new small business owners.
Two thirds of small business owners polled said that over taxation is keeping them from thriving. Pass-through businesses, including S Corporations, sole proprietorships, partnerships, and LLCs, account for more than 60 percent of American companies. Because these businesses “pass through” income and losses to the owner(s), many are subject to personal tax at combined state and federal rates of over 40 percent.
“The Bring Small Businesses Back Tax Reform Act is a major step to lifting the tax burden that are preventing small businesses from thriving and creating jobs,” said Alfredo Ortiz, president and CEO of the Job Creators Network. “To truly get the economy working again, we must allow the engine of the country’s economy to operate without being weighed down by over taxation.”
To identify the ongoing struggles of the labor market and small businesses and determine solutions to address them, JCN launched its Bring Small Businesses Back (BSBB) campaign earlier this year. Read the white paper JCN released earlier this year assessing the state of American small businesses here. Find out more information about the campaign atDefend MainStreet.com.
The Job Creators Network (JCN) is the voice of real job creators that has been missing from the debate on jobs and our economic crisis. JCN members talk about paychecks, not politics, helping the public and policymakers understand how to create jobs. For more information, please visit www.JobCreatorsNetwork.com