“The state of taxes in our country is weighing heavily on small businesses...."
FOR IMMEDIATE RELEASE
Wednesday, Sept. 4, 2024
CONTACT | Molly Day
202-552-2904 | mday@nsba.biz
NSBA Responds to VP Harris Small Business Tax Proposal
Washington, D.C. – Vice President Kamala Harris announced plans today to bolster small-business growth in the U.S. Among her plans is a proposal to expand the tax deduction for starting a small business from its current level of $5,000 to $50,000.
Below is a statement from NSBA President and CEO Todd McCracken.
“I welcome Vice President Harris’ focus on America’s small businesses, and any efforts to ease taxes, bolster our position in the federal marketplace and foster new business generation is commendable.
“Increasing the start-up tax deduction from $5,000 to $50,000 could be a major benefit to start-ups and could help with cash-flow and capital availability during the stage of the business life cycle when it is most needed.
“As with everything, however, the devil is in the details – most small businesses don’t garner significant profits in their first, or even second or third years – and so the length of time within which the deduction can be claimed is critical. I applaud the campaign’s promise to give leeway to claiming the deduction until the business is profitable and urge them to consider a minimum of 5 to 10 years.
“The state of taxes in our country is weighing heavily on small businesses, particularly given the 2025 expiration of a number of tax cuts from the 2017 Tax Cuts and Jobs Act. Chief among those: the 20 percent qualified business income deduction for pass-throughs and the income tax rate cuts for individuals.
“The expiration of the pass-through deduction will result in a significant tax hike on millions of small businesses. Furthermore, given that more than 83 percent of small businesses pay business taxes at the individual income tax level, the expiration of the individual rate cuts would be yet another tax hike on America’s smallest businesses.
“NSBA looks forward to working with both the Harris and Trump campaigns in helping them craft tax policy that will truly help small businesses when it comes to cash-flow hardships; tax-fairness between big and small businesses; and tax simplification.”
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
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