NFIB Newest Group to Endorse Buchanan Tax Reform Bill
Momentum Grows for Tax Parity Among All Businesses
WASHINGTON — The nation’s leading voice for small business, the National Federation of Independent Business, today endorsed Rep. Vern Buchanan’s Main Street Fairness Act.
Buchanan’s bill, which has been building momentum as Congress prepares to overhaul the tax code, would ensure that small businesses never pay a higher tax rate than large corporations.
Juanita Duggan, President and CEO of NFIB, said "For small businesses, tax parity with big corporations is an important principle. The vast majority of small businesses are pass-through entities that pay taxes at the individual rate. Some of them actually end up paying at a higher rate than the big corporations they compete against. We are grateful to Congressman Buchanan for introducing the Main Street Fairness Act, and we strongly urge that it become a central feature of comprehensive tax reform in the next Congress.”
The NFIB is the latest group to endorse Buchanan's measure. Others include the National Association of Manufacturers, Associated Builders and Contractors, the National Retail Federation, Americans for Tax Reform, the Florida Chamber of Commerce and Florida TaxWatch.
“The time is right for Washington to pass a tax reform package that grows our economy and unleashes the power of small businesses,” Buchanan said. “It’s absurd that small businesses face a higher tax rate than ExxonMobil. We have to level the playing field as part of tax reform.”
The Main Street Fairness Act will establish that businesses that file taxes as passthrough income, such as sole proprietorships, partnerships, LLCs and S corporations, will never pay a higher rate than a corporation. Under current law, corporations pay a maximum tax rate of 35 percent, while small business owners pay up to 39.6 percent under the individual income tax code on top of additional taxes on earnings and investments. These small businesses pay more than 50 percent of their income in taxes in some states; in Florida, they face an effective tax rate of 42.6 percent according to the Tax Foundation.
A tax reform blueprint released earlier this year by the Speaker of the House and the Chairman of the House Ways and Means Committee lowers the tax rate on income earned by pass-throughs, and states that the House “will build on concepts developed by Rep. Vern Buchanan of Florida in his Main Street Fairness Act.”
The concept behind Buchanan’s bill is also a part of a tax cut package supported by President-elect Donald Trump.
The businesses that would be helped by Buchanan’s plan account for more than 68 million jobs.