Tax Reform Update
June 16, 2015
How PHCC and the Business Community View
the Process of Revising U.S. Tax Code
The House and Senate will be releasing a comprehensive tax reform package by the end of this month. House and Senate members (and staff) have been working on multiple components of the IRS Tax Code to restructure our nation’s tax system. Many are anxious to review the proposal for this complicated issue. As an active member of the Small Business Legislative Council (SBLC), PHCC gains valuable insight on the information coming out of tax reform discussions on Capitol Hill. Click here to view some of SBLC’s input provided to the Senate Finance Committee.
Here is a summary of SBLC’s key points:
Allowing the Section 179 limits to stay at the pre-2003 levels and not extending bonus depreciation will strike a significant blow to small business growth and, in turn, job creation. To promote small business success, the SBLC urges this Committee to support making the increased Section 179 limits and bonus depreciation permanent.
While S corporations and other pass-through businesses play a vital role in the U.S. economy, tax reform proposals often focus on C corporations, placing S corporations and pass-through businesses at a disadvantage. The SBLC urges Congress to reject those proposals that would disproportionately benefit regular C corporations at the expense of small and midsize pass-through companies, whose owners will pay for the C corporations’ tax reduction.
The SBLC urges the working group to strongly oppose any proposals, related to the estate tax or otherwise, that would reduce or eliminate the step-up in basis. Such a course of action would prove extremely harmful to small businesses across the country and impede the ability of small businesses to grow, create jobs, and contribute to the economy.