Tax Reform Will Help Level Economic Playing Field for Small Businesses

John Arensmeyer

John Arensmeyer

Statement by John Arensmeyer on February 22, 2012:

The president’s tax reform plan announced today is exactly what small business owners have been asking for. It will create a more level financial playing field for small and large firms, promoting healthy competition that stimulates the economy.

The president’s framework for reforming the tax code will eliminate dozens of loopholes that consistently leave small businesses paying an unfair share of taxes. It will also simplify the tax filing process for small business owners, whose valuable time needs to be spent building their business so they can create jobs and grow the economy.

Our national opinion polling found 91 percent of small business owners believe multinational corporations’ use of loopholes to avoid paying taxes is a problem, and three-quarters say their own business suffers when large companies don’t pay their fair share of taxes. When asked what would do the most to create jobs, small business owners chose eliminating incentives to move jobs overseas.

The president’s announcement today shows entrepreneurs’ voices are being heard. If they’re going to live up to their potential as our nation’s leading job creators and put America back to work, lawmakers must help them by leveling the economic playing field.

President’s Budget Focuses on Small Businesses’ Top Concerns

John Arensmeyer

John Arensmeyer

Statement by John Arensmeyer on February 13, 2012:

The budget proposal President Obama released today keeps the spotlight trained on small businesses’ key concerns: enhancing access to credit, investing in job-creating infrastructure projects and boosting small business provisions in the Affordable Care Act.

These issues are major areas of concern for small businesses, and we’re glad the president is looking to address them in his long-term plan. Opinion polling we recently released found 90 percent of small businesses say access to credit is a problem and the same percentage support making it easier for community banks and credit unions to lend more. Additionally, more than two-thirds support investing in infrastructure projects.

We’re especially pleased to see a proposal to expand and simplify the small business tax credit in the healthcare law. We know from our polling and from talking to countless small business owners across the country that many small employers don’t know this provision to help them afford insurance for their employees exists. Some say it’s too complicated to use and bypass it entirely. Expanding and simplifying the credit so more small business owners can take advantage of it is exactly what small businesses have been asking for to help combat ever-rising premium costs.

We also know from our polling that reining in the deficit is important for small business owners, but the only way to close the gap is to get the economy back on track. The president’s plan recognizes the need to do both.

Tax Extension Deal a Win for Small Businesses

John Arensmeyer

John Arensmeyer

Small businesses are struggling during these tough times, and are looking to lawmakers for smart policies that will help boost the economy. In addition to specific legislation aimed at helping small employers, such as the Jobs and Credit Act and healthcare reform, small firms need legislation focused on helping the majority of Americans, who make up small business owners’ customer base.  The compromise tax package passed by Congress and signed into law by the president last week aims to do just that, which is good news for small businesses and the American people. It also allows us to move on to other pressing issues affecting small businesses.

Like most compromises, though, the deal was not perfect. Part of the compromise included extending tax cuts for the upper income brackets—those with taxable incomes of $250,000 or more—and a debate raged about whether this would have an adverse effect on small businesses. The claim that small businesses would be hurt if taxes on the top earners increased is misguided. Fewer than 3% of small business owners earn more than $250,000 a year, and the bulk of small employers across the country wouldn’t benefit from tax breaks on the rich.

Despite the disagreement, however, there are numerous provisions in the package that are valuable to small businesses in this fragile economy. Take, for example, the extension of research and development tax credits. This critical component will incentivize and reward companies that create new technologies and keep jobs here at home. Perhaps most important, the two year payroll tax reduction, coupled with the extension of unemployment benefits and middle class tax cuts, will put more money into the hands of American consumers, which in the end boosts small businesses’ bottom lines.

Small businesses are the lifeblood of our economy. Bipartisan measures like the tax cut package will help small businesses weather this economic storm and increase both revenues and job creation.