U.S. Rep. Steve Chabot (R-OH) is encouraging leadership of the House Ways and Means Committee to consider a bill that would update the U.S. tax code for small businesses.
In a letter to Committee Chairman Kevin Brady (R-TX), Chabot urged Brady to consider his bill — the Small Business Owners’ Tax Simplification Act (H.R. 3717) – when considering any new tax reform proposals.
“With the gig and sharing economy growing in importance, tax filing thresholds for independent contractors and worker classification decisions will become even more instrumental. H.R. 3717 addresses these issues, and others, to ensure that our nation’s innovators are not constrained by an outdated code,” Chabot wrote.
In July, Brady announced that the House is considering a new round of tax reforms, called Tax Reform 2.0. Last December, Congress approved the Tax Cuts and Jobs Act.
The second round of reforms, introduced as a framework, would make last year’s tax cuts permanent, add a new retirement savings plan and family savings plan, and expand 529 education saving plans, among other proposals.
Chabot’s bill would allow small business owners to both offer and participate in cafeteria benefit plans, such as HSAs and dental plans. It would also align quarterly reporting deadlines with actual quarter ends, align income tax filing thresholds, update electronic signature requirements, and put anti-fraud measures in place, among other provisions.