On Thursday, November 3, at 10:00 am, the Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access held a hearing entitled Pro-Growth Tax Policy: Why Small Businesses Need Individual Tax Reform. The hearing took place in Room 2360 of the Rayburn House Office Building.

As Congress turns its attention to tax reform and deficit reduction, this hearing examined the importance of “pass-through” entities and the need for Congress to consider individual tax reform in tandem with corporate reform. 

About 95% of U.S. businesses, and over 80% of small firms, are organized as pass-throughs, which pay taxes on their share of the profits on their individual income tax returns.  These firms account for 54% of all U.S. business net income, and employ 54% of the private sector workforce.  They are critical to our nation’s economic recovery.  Pro-growth policies, including tax reform, will allow them to create jobs and grow. 

Opening Statement:

Chairman Joe Walsh (R-IL)

Witnesses and Testimony:

Robert J. Carroll, Principal, Qualitative Economics and Statistics Group, Ernst and Young LLP, Washington, DC

• Witness Disclosure 
• Testimony 

Gary Marowske, President, Flame Furnace, Warren, Michigan

• Testifying on behalf of the Air Conditioning Contractors of America
• Witness Disclosure 
• Testimony 

William R. Smith, Chief Executive Officer, Termax Corporation, Lake Zurich, IL

• Testifying on behalf of the Precision Metalforming Association
• Witness Disclosure 
• Testimony 

Stephen Capp, President and CEO, Laserage Technology Corporation, Waukegan, IL

• Testifying on behalf of the National Federation of Independent Business
• Witness Disclosure 
• Testimony 

Additional Items:

Official Hearing Notice

Official Witness List

Official Hearing Memo

Hearing Video

Press Release