Coronavirus Response for Main Street: Letter to President Trump and Congressional Leaders
By SBE Council at 18 March, 2020, 3:18 pm
The President
The White House
1600 Pennsylvania Ave, NW
Washington, DC 20500
The Honorable Nancy Pelosi
The Speaker of the House of Representatives
United States Capitol
Washington, DC 20515
The Honorable Mitch McConnell
Majority Leader
United States Senate
Washington, DC 20510
Mr. President, Speaker Pelosi, and Majority Leader McConnell:
As America confronts COVID-19, it is critical that any fiscal and economic response to help businesses survive the crisis match the scale and intensity of the steps being taken to end the pandemic.
Schools, workplaces, and entire industries have been closed in an effort to slow the spread of the disease. These steps are unprecedented, as is the speed and severity of the economic collapse they have precipitated. The operations of millions of businesses are threatened, together with the jobs of the millions of workers they employ.
Individually and family-owned companies operate on their cash flow, and that cash flow has been severely disrupted in the past week – their costs are up and their revenue flows are down, if not shut off completely. The public response to the pandemic should be over in a few months, but the negative effects of lost jobs and closed businesses will be with us for much longer.
To minimize the number of businesses closed and workers unemployed, the response from Washington needs to be coordinated, massive, and focused on ensuring that all businesses have the resources necessary to ride out the pandemic. This response should include – but not be limited to – the following areas:
● Immediately provide readily accessible, unsecured credit to businesses of all sizes to ensure they have the cash to pay their workers, rent, and other costs during this crisis. While Congress, Treasury and the Federal Reserve have recently announced policies to increase the availability of credit to some businesses, these policies need to be expanded to make certain they are comprehensive and that the credit is readily available to all operating businesses in the short term.
● Suspend the filing of business returns and the payment of all business taxes to the federal government for the duration of the pandemic. These suspended taxes should include taxes owed for the 2019 Tax Year, estimated payments for 2020, and all payroll tax obligations. The suspension should be broad and apply to all businesses. When the pandemic is over, the repayment of any deferred taxes should be spread out over time.
● Amend the Tax Code to, among other items, restore the ability of businesses to carryback any net operating losses against previous year tax payments; suspend the application of the Section 163(j) limitation on interest expense deductions for tax year 2020 to avoid penalizing businesses for borrowing during this crisis; and suspend the Section 461(l) loss limitation on pass-through businesses to allow the owners of pass-through businesses to fully deduct any losses they incur this year.
The undersigned groups believe the key to helping businesses survive this crisis is to reduce their costs and increase their cash flow as much as possible in the coming weeks. The policies above are designed to do that and ensure that businesses are not penalized by the Tax Code if they lose money or increase their debt levels in 2020.
We appreciate your consideration and thank you for your leadership during these very difficult times.
Sincerely,
| Agricultural Retailers Association
American Beverage Licensees American Coatings Association American Composites Manufacturers Association American Council for Capital Formation American Council of Engineering Companies American Dental Association American Farm Bureau Federation American Forest & Paper Association American International Automobile Dealers Association American Supply Association American Veterinary Medical Association Angel Capital Association Asian American Hotel Owners Association Associated Builders and Contractors Associated Equipment Distributors Associated General Contractors of America Association of Home Appliance Manufacturers California Association of Winegrape Growers CCIM Institute Construction Industry Round Table Convenience Distribution Association (CDA) Council of Insurance Agents and Brokers DHI – Door Security + Safety Professionals Equipment Leasing and Finance Association (ELFA) Family Business Coalition Foodservice Equipment Distributors Association (FEDA) Heating, Air-conditioning, & Refrigeration Distributors International (HARDI) Independent Bakers Association Independent Community Bankers of America Independent Electrical Contractors Independent Insurance Agents & Brokers of America Independent Office Products & Furniture Dealers Alliance Institute for Scrap Recycling Industries Institute of Real Estate Management International Association of Plastics Distribution International Foodservice Distributors Association International Franchise Association International Sign Association International Wood Products Association ISSA – The Worldwide Cleaning Industry Association Manufactured Housing Institute Manufacturer & Business Association Metals Service Center Institute Mortgage Bankers Association NACS National Apartment Association National Asphalt Pavement Association National Association of Broadcasters National Association of Chain Drug Stores (NACDS) National Association of Electrical Distributors National Association of REALTORS® National Association of Wholesaler-Distributors National Automobile Dealers Association National Beer Wholesalers Association National Cattlemen’s Beef Association National Community Pharmacists Association National Cotton Council National Electrical Contractors Association National Electrical Manufacturers Representatives Association National Grocers Association National Limousine Association National Lumber and Building Material Dealers Association National Marine Manufacturers Association National Mining Association National Multifamily Housing Council National Office Products Alliance National Oilseed Processors Association National Ready Mixed Concrete Association National Roofing Contractors Association National Small Business Association National Stone, Sand & Gravel Association National Tooling and Machining Association National Waste & Recycling Association NATSO, Representing America’s Travel Centers and Truckstops NEMRA (National Electrical Manufacturers Representatives Association) NFIB North American Association of Food Equipment Manufacturers (NAFEM) North American Die Casting Association Office Furniture Dealers Alliance Outdoor Power Equipment and Engine Service Association Parity for Main Street Employers Precision Machined Products Association Precision Metalforming Association REALTORS® Land Institute Renewable Fuel Association Reserve Organization of America (ROA) Retail Industry Leaders Association S Corporation Association Small Business & Entrepreneurship Council SNAC International Society of Collision Repair Specialists (SCRS) Society of Independent Gasoline Marketers of America (SIGMA) Southeastern Lumber Manufacturers Association Specialty Equipment Market Association The Aluminum Association The American Institute of Architects United Fresh Produce Association Vinyl Institute Western Equipment Dealers Association Wine and Spirits Wholesalers of America |
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