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“After a long wait, the Administration and Republican leaders released their tax framework for tax reform. Despite all this time, it remains an outline, lacking the details we need to take serious steps to overhaul our tax code. It is only a slight improvement over the one-page of bullet points provided earlier this year. It’s now nine pages. We can’t really assess how it will help or hurt small businesses.

“Most importantly, it does not address the hard decisions that are required to make tax reform revenue neutral. Instead, this document offers false promises for small business tax cuts. This tax cut is not truly meant to help small firms. It will limit the maximum tax rate applied to pass-through entities to 25 percent. While 95 percent of businesses are structured as pass-throughs, only a small percentage would benefit from such a rate cut. An estimated 86 percent of pass-through filers are already taxed at 25% or lower. 

“The Big Six say they want to help small businesses but this framework proves they only desire to give tax cuts to the wealthy. Eliminating the section 199 deduction and other targeted provisions used by small firms is a disservice to hard-working entrepreneurs. We should work to improve the tax code by offering an increased startup deduction and greater incentives for retirement savings. We should not put the cost of tax reform on the backs of our nation’s small businesses.”

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