Tax bills give small businesses plenty to be thankful for
November 16, 2017
Small-business owners have a lot to be thankful for next week.
The recently introduced tax-reform bills in the House of Representatives and Senate make small-business tax cuts a centerpiece. This long overdue relief would finally address the overtaxation that most small business owners say is the biggest hurdle they face.
Partially as a result of years of overtaxation, American small businesses — like the communities where they locate — have not recovered from the Great Recession. New business formation remains at historic lows. Boarded-up shops dot Main Streets throughout the country. I believe that if The Home Depot started today, overtaxation would have prevented it from achieving its current success.
Proposed tax cuts can change this by allowing small businesses to keep a little more of their earnings necessary to survive and thrive in today’s competitive business environment.
Both plans have similarities that would further help small businesses. Both bills call for doubling the income threshold under which businesses and families pay zero tax to $24,000. Both would significantly expand the child tax credit, helping business owners and families cover the ever-increasing cost of child care.
Both call for the elimination of the 15 percent and 28 percent tax brackets in favor of expanded income thresholds at lower rates.
Small businesses wouldn’t be the only ones to benefit from these tax savings. According to a recent nationwide poll of small-business owners conducted by the Job Creators Network, most respondents would direct their tax savings to new jobs, higher wages and business expansion.
These bills give small-business owners, and all Americans, much to be thankful for this Thanksgiving.