Hearing Highlights Tax Reform’s Benefits to Small Businesses, Features Chairman Camp’s Testimony
WASHINGTON, D.C. – The House Small Business Committee, led by Chairman Sam Graves (R-MO), today held a hearing that highlighted the benefits to small businesses from tax reform and simplification, and for the first time since 1979, the Committee heard testimony from the House Ways and Means Chairman.
Ways and Means Chairman Dave Camp (R-MI) testified about his small business tax reform discussion draft, a part of the Committee’s effort to pursue comprehensive tax reform during the 113th Congress. A second panel of small business owners offered feedback on those concepts and provided insight into how those changes will affect them. A second panel of small business owners offered feedback on those concepts of potential reform.
The hearing examined how small businesses are disproportionately affected by tax complexity. The growing number of code provisions means that small business owners must spend more resources complying with the tax code rather than growing and creating jobs. This hearing delved into some of Chairman Camp’s efforts to simplify and reform the tax code and how small firms would be able to save time or money under an improved tax code.
“Over time, our tax code has become more complex and truly temporary, with tax relief being extended for one year, for months at a time or even retroactively,” said Chairman Graves. “Small businesses pay a tax compliance cost that is nearly three times larger than big businesses. According to the U.S. Chamber of Commerce Small Business survey released last week, eight out of ten small businesses support reforming the tax code. Creating a tax code that is easier to navigate and promotes growth will benefit small businesses and the U.S. economy as a whole. I commend Chairman Camp for his focus on bringing attention to ways to improve the tax code for small businesses.”
Ways and Means Chairman Dave Camp (R-MI), said, “Simply put, the tax code ought to be easier to understand and less expensive for small businesses to comply with – because every dollar they aren’t spending on taxes and tax compliance is a dollar they have to invest in equipment, start a new production line, hire a new employee or provide more in wages and benefits. That is my goal for comprehensive tax reform – a simpler, fairer tax code that leads to more jobs and higher wages.”
Materials for the hearing are posted on the House Small Business Committee’s website HERE.
Notable Witness Quotes:
Sam Griffith, President and CEO, National Jet Company, Inc., Cumberland, MD, on behalf of the National Tooling and Machining Association, said, “The National Tooling and Machining Association and I wholeheartedly support tax reform that includes real reform for both C Corporations and pass-through companies which make up the majority of small businesses in this country. We desperately need lower rates, simplification of rules and elimination of the sunset provisions in the tax code to allow us to compete globally. It is very difficult to plan into the future when there is such uncertainty in the tax code. No one likes a moving target and for the last ten years it has been a nightmare to plan.”
Steve Bearden, President and CEO, Linemark Printing, Upper Marlboro, MD, on behalf of Printing Industries of America, said, “Despite tough economic times that saw the industry lose over 75,000 jobs in the past four years, printing companies like Linemark are ready to come back. It’s critical that tax policies are in place that will allow us to do so. Chairman Camp’s overall goal of simplifying tax rules concerning small business in order to reduce the impact of tax costs and complexity is one both Printing Industries of America and I, personally, can and do support.”
Roger Harris, President and COO, Padgett Business Services, Athens, GA, said, “For many small business owners that rely heavily on their business checking accounts for their basic books, what might seem like good tax policy here in the halls of Congress will be, and is, seen as needless burden to someone simply trying to make the next payroll. Chairman Camp’s proposal definitely heads in the right direction for entrepreneurs looking for a simpler system that simplifies their lives and lets them just focus on running and building their businesses.”###