Simplified Tax Code for Small Businesses
Last reformed more than 30 years ago, our nation’s microentrepreneurs and small businesses are struggling under the weight of the burdensome and outdated federal tax regime. The Trump Administration and House Speaker Paul Ryan have made comprehensive tax reform a major policy goal in 2017.
In 2016, Speaker of the House Paul Ryan released “A Better Way” tax blueprint, and the House Ways & Means Committee is crafting the legislation. The House plan would , among other things, limit the tax rate that applies to pass-throughs at 25 percent, lower the corporate rate to 20 percent and provide businesses the benefit of full and immediate write-offs of their investment in both tangible and intangible assets.
However, Speaker Ryan's blueprint appears to be losing its status as the likely framework for the first major tax reform. Rival approaches are emerging from the White House, the Senate Finance Committee and other quarters of Congress. In the Senate, Republicans are expected to review a 2015 tax package from former House Ways and Means Committee Chairman Dave Camp as a starting point for their own tax legislation. This changing focus could delay passage of a tax bill until late 2017 or 2018.
There are 25.5 million microbusinesses in the U.S., more than 90 percent of which are pass-through entities taxed at the individual rates with complicated provisions that apply to their individual tax returns.
AEO advocates for reforms that simplify the tax code and ensure our small business community can continue to grow and create jobs.
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