Graves Criticizes The President’s ‘Grand Bargain’ For Leaving Out Small Businesses
House Small Business Committee Chairman Sam Graves (R-MO) released the following statement on the President’s “grand bargain” announcement on Tuesday to reform taxes for corporations and enact new economic stimulus spending:
“The President’s proposal to reform only the corporate tax structure leaves out many of our nation’s small businesses, because most of them file their taxes as individuals and are organized as pass-through entities. These businesses pay taxes as individuals, not corporations, and don’t stand to benefit under the President’s plan. In fact, many saw their taxes increase last year due to the President’s policies. These businesses are the ones creating innovation and jobs, but they are only getting lip service from this Administration. The President’s goal to consider only corporate tax reform leaves out small businesses, our nation’s most robust job creators, and it undermines Congress’ more comprehensive approach to tax reform that is already underway.”
The Small Business Committee held a hearing on the importance of doing individual tax reform along with corporate reform last Congress. Small business witnesses at the hearing overwhelmingly agreed that any tax proposal must include reform of individual rates, and not just corporate rates, because about 75 percent of all businesses are organized as pass-through entities – those that pay their taxes on their individual tax returns, such as LLCs and S corporations.
Ways & Means Chairman Dave Camp (R-MI) also testified before the Committee, in April, on his Committee’s comprehensive tax reform process and ideas for small businesses.