Economic Agenda: Tax Policy

Publisher: 
Small Business Majority
Date: 
Thu, 10 Sep 2015

Small Business Majority has created an economic blueprint for lawmakers and government leaders that will strengthen our economy, create jobs and solidify its base, small businesses. The recommendations range from action on access to capital, taxes, healthcare, infrastructure, freelance economy, minimum wage, workforce training, immigration, clean energy and exports, and are all tied to creating economic opportunities for small businesses and entrepreneurs.

The nation’s tax code must create opportunities for small businesses and encourage startups and entrepreneurs. To do that, we must take steps to level the playing field, simplify the tax code and ensure fairness. This includes: 

  • Eliminating wasteful corporate loopholes while lowering corporate tax rates in a manner that ensures a net revenue increase to bring down our deficit and fund key programs.
  • Ensuring parity between online and bricks-and-mortar businesses with a reasonable and fair Internet sales tax solution.
  • Passing the America’s Small Business Tax Relief Act of 2015, which would permanently raise the small business expensing (sometimes called Section 179 expensing) level to $500,000, and allow small businesses to deduct up-front the cost of purchasing new equipment, software and property.
  • Passing the Small Business Tax Credit Accessibility Act, which would simplify and expand the small business tax credit created by the Affordable Care Act—helping more small businesses qualify for and utilize it.
  • Passing healthcare tax equity for the self-employed so that freelancers can deduct their healthcare expenses from their FICA tax obligations.
  • Cracking down on the ability of large corporations to reduce their tax burden simply by moving their headquarters outside the country.
  • Creating tax incentives for angel investors. More than half of states offer tax incentives for angel investors. Federal support of these efforts would encourage more local and state governments to consider such measures. 
  • Introducing legislation that would allow growing small- and medium-sized businesses temporarily to defer a portion of their federal income tax liability so they can continue making new investments in their businesses.
  • Reducing the deficit and ending sequestration. The president’s proposed budget for 2016 seeks to end sequestration by cutting inefficient spending and reforming the tax code, which would be a step in the right direction for entrepreneurs.

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