In a recent Ways and Means Committee hearing, small business owners in the manufacturing sector testified on how the current tax code affects them and how comprehensive tax reform could affect their ability to expand and create jobs. Their testimony reflects the overwhelming support among job creators for a flatter, simpler tax code that provides the certainty business owners need so they have the resources they need to invest, hire and grow .
President Obama and the Democrats who control Washington, meanwhile, have made it clear that they are prepared to allow the current top two tax rates to expire. This tax hike will hit 940,000 small business owners and higher taxes on 53 percent of all small business income. The Democrat tax hikes will also result in over 700,000 fewer jobs, according to a recent Ernst & Young study.
This week, Republicans will vote on legislation to stop the tax hike, extend current rates for one year and force Congress to act on comprehensive tax reform next year that will strengthen our economy and make our broken tax code simpler and fairer. For small business owners, the time for action is now.
Why Tax Hikes Will Hurt Small Business
“We cannot look at this as just money going into our pockets, and going into our clubs, whatever we say here. The overwhelming majority of small business profits goes back into the business. It’s our livelihood. It’s the future for our, hopefully, our families and children.”
– Ralph Hardt, President of Jagemann Stamping Company based in Manitowoc, Wisconsin, a fourth generation family–owned business with 300 employees.
Small Business Owners Need A Simpler Tax Code that Provides Certainty
“…A flatter tax, a simpler tax — one that doesn’t change with the wind, one that’s set to help businesses plan accordingly for the long term. You know, we have to be able to plan for the long term. You know, we have to be able to look out two, three, four, five to six years.”
– Kim Beck, President and CEO of Automatic Feed Co. in Napoleon, Ohio.