The Trump Administration’s tax reform plan, which was released this week, drew praise from the National Small Business Association (NSBA) for its proposal to cut taxes for small businesses.
U.S. Treasury Secretary Steven Mnuchin said the forthcoming proposal would include a tax cut for the majority of small businesses. He also said the proposal would include the elimination of deductions and credits without an offsetting reduction in tax rates.
“We appreciate the administration’s understanding of how most small businesses pay taxes, which is reflected in this proposal,” NSBA President and CEO Todd McCracken said. “There remains a good deal of details still needed, including how such a cut would impact the overall U.S. debt – something with which NSBA’s members also are concerned.”
McCracken said the biggest issue concerning federal taxes is complexity—not the actual financial burden.
“We hope that, as this proposal—or any other proposals—continue to develop into legislation, easing complexity will be a top priority,” he said.
He also noted the importance of Congressional support for tax proposal success.
“Today, we have the first real chance for broad tax reform in a generation, however the overwhelming majority of small businesses believe political failures—partisanship and a lack of effort—are the biggest challenge facing reform, and one-third don’t believe tax reform will ever be enacted,” McCracken said.