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Washington, DC — Today, the House Small Business Committee held a hearing examining the impact of recent tax reforms on American small businesses. During the hearing, Ranking Member Nydia M. Velázquez (D-NY) discussed the need for reforms that simplify the current tax system and even the playing field between large corporations and big businesses.

“Main Street businesses form the bedrock of our nation’s economy, driving innovation and job creation, even during periods of economic turmoil and uncertainty. Regrettably, despite the fundamental importance of small firms, recent tax reform has catered to the interests of wealthy individuals and large corporations instead of American entrepreneurs,” said Ranking Member Velázquez. “Small businesses require certainty and simplicity to compete. However, our convoluted and onerous tax code creates an overwhelming burden for these businesses.”

During the hearing, members discussed the impact of recent tax reforms like the 2017 Tax Cuts and Jobs Act (TCJA) on American entrepreneurs. In the aftermath of the law’s passage, a public opinion poll found that nearly half of the small businesses surveyed said the TCJA had no impact on their growth or profitability. Small business owners at the hearing testified on the effects that tax law changes had on their businesses and ways Congress can craft tax policy that better supports entrepreneurs.

“If we genuinely want to support small businesses, we must avoid taking the easy route by merely extending the TCJA. Instead, our policymakers should do the hard work to develop a tax code that actually benefits small businesses rather than giving them a token deduction,” said Anne Zimmerman, Founder & Owner of Zimmerman & Co CPAs Inc. in Cincinnati, OH. “There is no reason for the tax code to favor large corporations. Given the potential for job creation and economic activity in every community across the country to be had by empowering small businesses, the tax code can and should be designed to help our Main Street entrepreneurs thrive.”