Tax Reform and Small Businesses

On November 28, 2017, SBA Administrator Linda McMahon joined Senate Republicans at an event to highlight issues faced by small businesses relating to tax reform. Highlights from the discussion include Senator John Cornyn’s mention of changing “pass-through” taxation for S Corporations, as well as Senator Deb Fischer discussed her proposal for a 25% tax credit on paid family leave for small businesses, which she said is geared toward helping hourly workers. Also in attendance at this event were representatives from several business associations. Archived video footage can be viewed here.
 
There are varying opinions on whether current tax reform efforts would achieve the Committee’s mission and help small businesses. On November 20th, Senate Small Business Committee Democrats released a statement of opposition to the Republicans’ tax plan, which you can find here.
 
Some opponents of the tax plan, including Senator Ron Johnson (R-WI), claim that the bill prioritizes traditional corporations over “pass-through” businesses, which some say would hurt small business in favor of big business. Further, recent polls have shown that Americans favor individual tax breaks, but do not support corporate tax breaks. More information can be found here.