Walsh: Individual Tax Reform is Vital for Small Business Growth and Job Creation
Nov 3, 2011 -
WASHINGTON, DC— Economic Growth, Tax and Capital Access Subcommittee Chairman Joe Walsh (R-IL) today held a hearing to examine the need for individual tax reform for small businesses that will help our nation’s best job creators thrive instead of being crippled by unnecessary burdens. A large majority of small businesses are 'pass through' entities— those that pay their taxes on their individual tax returns, rather than on a corporate return. As Congress turns its attention to tax reform, it is vital that any reforms include pass-through entities, as well as, corporate reform.
“There is no doubt that Internal Revenue Code— which has tripled in size over the last nine years— is a complex and confusing system that is in dire need of reform, especially for small businesses,” said Walsh. “With over 80 percent of small businesses organized as 'pass through' entities— we must make reforms that will keep taxes low.
“Small firms are the engine of job creation in this country— lowering their taxes and costs to comply with the tax code frees up more capital to grow and hire more workers. I know that small business is the key to job creation. In order to create jobs we need to let private business thrive, not big government. If we want to see this growth take place, we must take actions such as reforming the tax code for both individual and corporate returns. Small businesses can create the jobs America needs if we can get the government out of the way.”
For related hearing materials, click here.
Notable Witness Quotes:
Stephen Capp, President and CEO of Laserage Technology Corporation in Waukegan, IL, said, “Over the last few years, Laserage’s operating costs have steadily increased. Illinois taxes were increased massively this past year. Last year, health insurance costs rose 21 percent. Materials and energy costs continue to increase. If federal income taxes increase, as well, it could well be the “straw that breaks the camel’s back” and forces us to manufacture in an offshore business.”
William R. Smith, President and Chief Executive Officer of Termax Corporation in Lake Zurich, IL, said, “Due to our current U.S. tax code, we are taxed on income we do not take out of the company but leave in the business to reinvest. This means we have fewer resources to put towards hiring, training, and buying new machines… Tax reform is possibly the single most important barrier to improving manufacturing growth in the U.S. but it is about so much more than just statutory rates… On behalf of small and medium sized businesses manufacturing in America, we ask that Washington move on comprehensive tax reform to help us all grow our businesses and create jobs in the U.S.”