As Americans head into the holiday season, Saturday, November 25th marks Small Business Saturday – an annual opportunity to celebrate the significance of America’s small businesses. Unfortunately, today’s broken tax code puts a damper on this important day for many job creators on Main Street who must pay sky-high taxes and navigate through thousands of pages of tax rules and regulations.
Last week, the House took action to help our small businesses by passing the Tax Cuts and Jobs Act, legislation that will lower rates, simplify the tax code, and make it easier for our Main Street job creators to invest in their workers, businesses, and communities.
As Chairman Kevin Brady (R-TX) said:
“America is a country of risk takers and innovators, and nowhere is that better represented than on Main Street. Whether it’s a coffee shop in Conroe, or a hardware store in Huntsville, Small Business Saturday gives us a chance to acknowledge the vital role our small businesses play in all of our communities.
“For the past six years we have been listening to our small businesses closely. This Small Business Saturday, much-needed tax relief and a stronger economy are on the horizon for our Main Street job creators. With the House passage of the Tax Cuts and Jobs Act, we are one step closer to delivering the tax relief that small businesses all across our country so badly deserve.”
Our pro-growth legislation will help Main Street job creators by:
- Reducing the tax rate on hard-earned pass-through business income to no more than 25% – the lowest tax rate on small business income since World War II.
- Establishing strong safeguards to distinguish between individual wage income and pass-through business income so Main Street tax relief goes to the local job creators it was designed to help most.
- Allowing businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity, and paychecks.
- Protecting the ability of small businesses to write off the interest on loans that help our Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.
- Establishing a new, low rate of 9% for the first $75,000 of business income earned by owners of pass-through businesses who earn less than $150,000, helping startups in every line of business across the country that fuel innovation and job creation in so many of our communities.
- Simplifying the tax code so Main Street job creators can focus more time and money on growing their business and investing in their workers.
- Providing immediate relief from the Death Tax by doubling the exemption and then repealing the Death Tax after seven years so family-owned businesses will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.
As we celebrate Main Street this Saturday, the Ways and Means Committee will continue its work to send the Tax Cuts and Jobs Act to the President’s desk this year.
CLICK HERE to learn more about the Tax Cuts and Jobs Act.