Rep. Kevin Brady (R-Texas) on Wednesday explained why President Trump’s tax reform plan, which would lower the corporate tax rate to 20%, plays such an aggressive role in helping small businesses.
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“We’re proposing a 40% tax cut on local businesses whether they are the smallest mom-and-pop just starting out or they are the biggest corporation. Both of those are the lowest rates in modern history,” he told FOX Business’ Lou Dobbs on “Lou Dobbs Tonight.”
Brady detailed how Trump’s plan will give small businesses a break.
“We make sure they can do full unlimited write off, cap equipment, we end the death tax permanently for our small businesses. And we’re going to allow, encourage them to continue to be able to deduct their interest payments and we are going to make sure that more small businesses can just do simple cash accounting, just a simple way to keep their books. So we’re going all in on small businesses because they’re such a big part of our local economy,” he said.
Brady acknowledged however that Republicans must first pass a budget deal before moving on to tax reform, which many experts say will expand the federal deficit.
“No budget, no tax reform, but today in the House after Republicans across the spectrum saw how bold we’re going, they signed on to the budget as well,” he said.