“Better Way” Tax Reform Plan Will Boost Entrepreneurship and Small Business Growth

By SBE Council at 24 June, 2016, 10:43 am

FOR IMMEDIATE RELEASE

Washington, D.C. – Today, the House GOP Task Force on Tax Reform unveiled a plan to fix the nation’s complex and convoluted tax system. The blueprint provides solid measures to bolster fledgling entrepreneurship and help small businesses grow and succeed.  Pro-investment provisions in the blueprint are sorely needed as business investment has been pitiable, which is key to driving quality job creation, wage growth and startup opportunities.  The GOP “Better Way” plan can be accessed here.

Entrepreneurs and small businesses desperately need a simple and fair tax system that will support their growth and success. The GOP’s “Better Way” tax reform proposal offers a solid foundation to boost entrepreneurship and small business growth.

According to SBE Council president & CEO Karen Kerrigan: “The time is long overdue for tax simplicity and relief for our nation’s entrepreneurs and small businesses. The poor economic recovery is a signal that policies must enable more risk-taking and investment, and entrepreneurs must be a top priority in order to return to strong and sustainable growth.  The GOP tax plan offers a bold path for getting our economy and small businesses back on strong footing.  A simple tax system, with competitive rates and strong investment incentives is good for everyone in our economy, especially our entrepreneurs and individuals who want to pursue their dream of starting a business.”

Some of the features of the GOP plan include: lowering the rate on “pass-through” entities – many of which are small businesses – to 25%; lowering the corporate tax rate to 20%; the elimination of the death tax and alternative minimum tax; consolidates seven tax brackets down to three; eliminates and streamlines various exclusions, deductions, and special interest provisions; allows for full and immediate expensing; encourages capital formation by lowering long term capital gains and qualified dividends from 23.8% to 16.5%; transfers the U.S. tax system from a worldwide one to a territorial system; and makes important structural changes to the Internal Revenue Service, to put the word “service” back into the tax agency.

Raymond J. Keating, chief economist for SBE Council, added, “Pro-entrepreneur, pro-investment, pro-work tax reform is critical to moving this economy back onto a path of robust economic growth. This tax reform plan would be a major step in the right direction by reducing both personal and corporate income tax rates; cutting destructive capital gains taxes; allowing all businesses to expense capital spending; and eliminating the counter-productive death tax. This kind of reform would help boost investment, business, economic, income, productivity, and employment growth. Most critically, it would enhance the returns on and incentives for entrepreneurship, which is the engine of our economy.”

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 advanced key policies and initiatives to strengthen the ecosystem for startups and small business success. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow us on Twitter: @SBECouncil

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