The Main Street business community has come out in strong support of the House Budget Resolution scheduled to be considered this week. The simple reality is there will be no tax bill unless Congress adopts a budget that calls for one. As Karen Kerrigan noted in her letter to House leaders:
This must be a priority for Congress…passing the budget resolution is a vital first step toward that end. Renewing expiring small business provisions in the TCJA such as the 20% small business deduction, lower individual income tax rates, higher threshold exemptions on death taxes, and restoring incentives such as immediate R&D expensing and bonus depreciation, are critical to America’s innovative entrepreneurs.
For that reason, more than 100 Main Street trades and business organizations signed a letter to Speaker Johnson and Democratic Leader Jeffries in support of the budget resolution before the House. As the letter argues:
Absent action, millions of Main Street businesses organized as S corporations, partnerships, and sole proprietorships will see their taxes go up sharply next year. Taxes on these pass-through businesses will go up when they earn profits, when they invest, and when they pass their businesses on to the next generation.
Signatories of the letter include manufacturers, roofers, wholesalers, franchisers, contractors, engineers, retailers, and just about every other part of the American economy. These member businesses are located in every community in the country, and they support every aspect of life in those communities.
House members thinking about opposing this budget are setting the table for a massive tax hike on these businesses that represent 95 percent of all businesses and employ 63 percent of all private sector workers.
Congress needs to act to stop that tax hike and it needs to do it quickly to give the business community the certainty it needs and deserves.