“New tax bill would help struggling labor market,” an op-ed piece written for Washington Examiner by our very own AAHOA President and CEO Chip Rogers, states the case for the Bring Small Businesses Back Tax Act. The act would provide tax relief to small businesses and lower the tax rate for pass-through companies.
The May jobs report cited a gain of 38,000 jobs, the lowest monthly jobs gain since 2010. Rogers noticed that a “direct cause is the ongoing stagnation of American small businesses, which provide three-quarters of the country’s new jobs and half its overall jobs.”
Rogers writes, “American small businesses still have not recovered fully from the Great Recession. A recent Bank of America small business survey finds that only 21 percent of respondents say they have completely recovered.
“Consider the impact such tax reform would have for an independent or franchised hotel, whose profit margins are just pennies on the dollar. If a hotel earns $450,000 a year before tax, under the current tax system, it would pay an effective federal tax rate of 30 percent — $134,500 in tax. But under Hultgren’s bill, it would pay an effective federal tax just shy of 18 percent— $80,000 in tax.
“The reforms in this bill would dramatically help small businesses still struggling seven years after the Great Recession formally ended. The new jobs that it would create by allowing small businesses to keep more of their money in the community and less in Washington, D.C., would provide a much-needed boost to help revitalize many of the cities and towns bypassed by the recovery. Let’s make it happen.”
To read the full op-ed piece, click here.