PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocate and Entrepreneur Supports Legislative Changes to Modernize Tax Code

By at 4 October, 2017, 1:23 pm

NEWS

House Small Business Committee Hears From Entrepreneurs on Tax Reform, and Bipartisan Legislation to Update Outdated Provisions in the U.S. Tax Code

FOR IMMEDIATE RELEASE

Washington, D.C. – Today the U.S. House Small Business Committee examined ways to modernize the tax code for our nation’s small businesses and entrepreneurs, and Small Business & Entrepreneurship Council (SBE Council) Entrepreneur-in-Residence Kristie Arslan, who is also a co-owner of Alexandria-based Popped! Republic, provided testimony and input about potential reforms and how the bipartisan Small Business Owner’s Tax Simplification Act (H.R. 3717) would be a plus for her business and small firms across the country.

Kristie Arslan, SBE Council’s entrepreneur-in-residence and co-owner of Popped! Republic, testified before the House Small Business Committee on the benefits on H.R. 3717, as well as what tax reform in general would mean to the growth of her small business.

(Rewatch the hour-long hearing here, which begins at 11:08 on the video.)

“The U.S. business community is in dire need of a tax code that encourages investment and growth, fosters new business creation, and alleviates the excessive compliance burden costing businesses both substantial time and money,” said Arslan.

Arslan voiced support for H.R. 3717, bipartisan legislation being advanced by House Small Business Committee members, which includes a variety of provisions to modernize the tax system, reduce compliance costs, and help small firms with health coverage options. Key provisions in H.R. 3717, such as increasing the dollar threshold required for filing a 1099–MISC form from $600 to $1,500; aligning quarterly reporting deadlines; and allowing business owners to both offer and participate in Cafeteria Plans would mitigate compliance challenges as well as expand benefit offerings for small businesses.

With regard to updating the 1099-MISC threshold, Arslan said modernizing that provision would “cut her firm’s paperwork in half.”

In her written testimony and in response to questions from members of the committee, Arslan said lowering tax rates on her business is critical to her business’s growth. In her written testimony she noted:

“We hit our 5-year anniversary this May, at present have 11 employees and are currently in growth mode.  We now operate a store in Alexandria, VA, a mobile food truck in D.C. and we just opened a kiosk location at the Fort Belvoir Military Base.  We are working to add another retail location in northern Virginia which would create an additional six to eight jobs. We would like to fund this growth with the revenue from our existing business operations.

“Tax cuts on pass through entities such as ours, would allow us to keep more of our money to fund this expansion and minimize our need to take on increased debt.  Growth, job creation, and enhancing the local economy – the exact mantra we’ve heard from lawmakers year over year.”

With regard to other recommendations that the committee may want to consider to enhance the bill, Arslan said increasing the self-employment threshold from its 1950s-era level would incentive more entrepreneurs who may be “testing the waters” to stay in the game and would help those currently self-employed.  If the current threshold, which stands at $400, kept pace with inflation it would amount to more than $6,000.  Arlsan also encouraged committee members to consider Health Reimbursement Account (HRA) changes as a part of H.R. 3717.  Allowing the owner of a business to participate in HRAs would encourage them to establish coverage and then provide it for their employees.

House Small Business Committee Chairman Steve Chabot (R-OH) said the goal for moving H.R. 3717 is to include it in the broader tax reform package that will be advancing through the U.S. House in the near future.

CONTACT:
Karen Kerrigan, kkerrigan@sbecouncil.org 
703-242-5840 

Kristie Arslan, karslan@sbecouncil.org
 
SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil                                                                                                                                                                                                                       # # #

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