The GOP unveiled its plans for tax reform late last week in an effort to streamline the tax code, a move that aims to cut the tax rates for corporates. But, one small business lobby group, the National Federation of Independent Business (NFIB), has already spoken out against the proposal.
In a statement released late last week, the NFIB said it is “unable to support the House tax reform plan in its current form.”
NFIB president and CEO Juanita Duggan provided the organization’s official statement.
“This bill leaves too many small businesses behind,” Duggan continued. “We are concerned that the pass-through provision does not help most small businesses.”
The GOP tax proposal outlines a 25 percent tax rate for pass-through businesses, which refers to how owners of those small businesses pay tax on income generated through their operations. The proposal is intended to target small business owners.
Instead of being taxed at an individual rate for business profits, people who own their own businesses would pay at the lower, so-called “pass-through rate,” explained Business Insider in its coverage of the NFIB’s remarks.
“Small business is the engine of the economy,” added Duggan. “We believe that tax reform should provide substantial relief to all small businesses, so they can reinvest their money, grow and create jobs.”
The tax proposals would also aim to cut the corporate tax rate from 25 percent to 20 percent, though reports in Bloomberg Politics said an unnamed Republican lawmaker noted that tax rate cut would be phased out after 10 years, which, according to the publication, “would limit [the tax plan’s] ability to spur economic growth.”
Republican lawmakers said the proposals are just the beginning of the conversation and process of tax reform.
“This is just the kickoff to this tax reform exercise,” said Representative Carlos Curbelo (R-Florida) in a statement last week.