Have a headache from Tax Season? Lawmakers met this week to urge for policy reforms they say will uncomplicate the system and save you money – which can get put right back into the business -- in years to come.
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“Simply put, the tax code ought to be easier to understand and less expensive for small businesses to comply with – because every dollar they aren’t spending on taxes and tax compliance is a dollar they have to invest in equipment, start a new production line, hire a new employee or provide more in wages and benefits,” said Ways and Means Chairman Dave Camp (R-MI) on Thursday during a House Small Business Committee hearing on the importance of tax reform for small businesses.
It was the first time since 1979 that the Ways and Means Chairman gave testimony to the Small Business Committee.
Rep. Camp also said since the majority of American workers are employed by small businesses, fixing the tax code would mean putting more money in the hands of Americans.
Camp highlighted four potential reforms during his testimony. They included a permanent expensing of investments and property under tax code section 179; simplifying tax and accounting practices by using the “cash accounting” method for businesses with gross receipts of $10 million or less; establishing a deduction for startup and organizational costs; and reordering and simplifying due dates of tax returns for partners and S-corps.
Small business was also represented at the hearing, with business owners and company CEO’s speaking about how tax reform would help their businesses.
“For many small business owners that rely heavily on their business checking accounts for their basic books, what might seem like good tax policy here in the halls of Congress will be, and is, seen as needless burden to someone simply trying to make the next payroll,” said Roger Harris, of Padgett Business Services in Athens, GA.
According to the U.S. Chamber of Commerce Small Business survey released last week, 80% of small businesses support tax code reform.