news

Last week, President Trump and Congressional Republicans unveiled the contours of a tax plan that while lacking in details, appears unlikely to meet the needs of America’s small businesses.  Moreover, the Republican plan proposes removing tax incentives, almost certainly at the expense of small firms. 

“When it comes to tax reform, America cannot afford to leave our small businesses behind,” said Velázquez. “Unfortunately, the Republican framework does just that. It ignores the concerns that we on this Committee have heard time and again from small business owners. These hardworking Americans have for far too long, been caught in a complicated tax structure that fails to adequately meet their needs.” 

Instead, Democrats are turning to bipartisan tax solutions that do not shy away from the details. To this effort, Ranking Member Nydia M. Velázquez (D-NY) has joined with Chairman Steve Chabot (R-OH) to co-sponsor the Small Business Owners' Tax Simplification Act of 2017.  

This bill uniquely takes into consideration the rise of the sharing economy and the reality that an increasing number of employees are characterized as “independent contractors”. The bill provides more flexibility for micro-entrepreneurs by allowing companies to collect taxes that otherwise would be shifted to the independent contractor. The bill additionally makes it easier for entrepreneurs to access health care, streamlines reporting, and increases the availability of “cafeteria plans” for small business owners. 

“I am proud to work across the aisle to reach commonsense solutions that will benefit entrepreneurs and small business owners,” said Velázquez. “It is important that as this technological revolution advances, government policy keeps pace. This bill is a good first step in offering small business owners what they deserve—a better deal on taxes.”  

As Congress continues to discuss tax reform, Democrats cautioned against tax proposals that place undue burdens on small businesses and working-class Americans. 

“Instead of granting major tax breaks to corporate America at the expense of working families, Republicans ought to focus on the backbone of our economy—small businesses,” said Velázquez. “The economy has changed dramatically since Congress last undertook tax reform and we cannot afford to merely pay lip service to these small firms. It is time for a better tax code for America’s small firms, working class and entrepreneurs.”

###