Chairman Chabot Introduces Legislation to Update the Tax Code for Nation’s Innovators
WASHINGTON - Today, House Small Business Committee Chairman Steve Chabot (R-OH) introduced H.R. 3717, the Small Business Owners’ Tax Simplification Act, to create more clarity within the tax code and allow small business owners to both offer and participate in cafeteria plans. Ranking Member Nydia Velázquez (D-NY) is an original co-sponsor of this bill.
“Thanks to the innovation of today’s small business owners, we can now order food or catch a ride from our phone. Unfortunately, though, our current tax code has not kept pace with today’s innovators,” said Chairman Chabot.
“Issues such as a whether a worker is considered an employee or contractor still need to be addressed and updated. Additionally, small business owners should be allowed to participate in Health Savings Accounts and pension plans offered to their employees to best meet the needs of their company. Whether a small business is offering a ride, making a delivery, or manufacturing new technology, it’s time we fixed the inequalities they face within our tax code,” Chabot concluded.
“Our tax code no longer works for small businesses and is too outdated to keep up with the needs of a new generation of entrepreneurs in the sharing economy. Over 3 million people earn income as microentrepreneurs through the sharing economy. But, because the tax code has not been updated since 1986, it creates complexities that serve to stifle their efforts and burden them with additional costs,” said Ranking Member Velázquez
“These are not the only policies creating inequities for small employers. From reporting deadlines and filing thresholds to health and benefit plan parity for the self-employed, small business owners need a better tax code. I am pleased that the Chairman and I could come together to draft a bipartisan tax package to address the tax needs of small firms in every industry,” Velázquez added.