In an op-ed in the Hill, Alfredo Ortiz, president and CEO of the Job Creators Network, and economist Stephen Moore praise President Trump’s proposed tax reform plan as a victory for American workers and small businesses.
From Ortiz and Moore’s op-ed in the Hill:
The Trump tax plan that has now been drafted in the House includes the biggest small business tax cut in at least 15 years. We believe the small business employers who hire well over half of American workers are big winners here, and kudos to President Trump and House Republicans for giving them long overdue relief. Anything that benefits small businesses by allowing them to succeed and expand is unquestionably good news for American workers.
The bill calls for a new 25 percent top marginal small business tax rate, down from the current 39.6 percent rate on successful businesses. This reform will allow millions of American manufacturers, retailers, and other small businesses to keep more of their earnings necessary to compete with their big business and international competitors. It will also help keep them located here in the United States.
There are caveats to the new 25 percent rate. First, only 30 percent of qualifying earnings can be considered business income and subject to this new rate. The other 70 percent will be considered wage income and will be taxed at the new individual tax rates. By the way, the current 39.6 percent rate on America’s small businesses is one of the highest in the world. Most other nations already provide a lower tax rate for the small entrepreneurial firms.
Read the rest here.