The Job Creators Network announced its support for the Bring Small Businesses Back Tax Reform Act (H.R. 5374), announced today by U.S. Rep. Randy Hultgren (R-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% 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.
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% 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%.