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WASHINGTON – Today, the House Small Business Committee held a hearing examining how tax policy impacts American small businesses. During the hearing, Ranking Member Nydia M. Velázquez (D-NY) underscored the need for a fairer tax system that supports small firms rather than prioritizing large corporations and the wealthy.

“Main Street businesses form the bedrock of our nation’s economy, driving innovation and job creation, even during periods of economic turmoil and uncertainty,” said Velázquez. “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.”

During the hearing, Velázquez warned that policies coming out of the Trump administration are placing new burdens on small businesses while accelerating economic inequality. She pointed to the push to make the Trump-era tax cuts permanent and the recent rollout of sweeping tariffs, which she said amount to a historic tax hike on the middle class.

Velázquez argued these actions will raise prices, slow economic growth, and hit small businesses hard during an ongoing cost of living crisis.

“In a time when our nation suffers extreme levels of income and wealth inequality, the Republican plan is to continue to shift the tax burden onto the working class, while lavishly cutting taxes for the top 1 percent and adding to the deficit,” said Velázquez.

The committee also heard testimony from a small business owner who called on Congress to avoid simply extending the 2017 Tax Cuts and Jobs Act and instead pursue reforms that truly benefit small firms.

“If we genuinely want to support small businesses, we must avoid taking the easy route by merely extending the TCJA,” said Anne Zimmerman, Founder and 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.”

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