I own a small business in Portland that sells holistic pet food and supplies. From where I sit, the House tax bill that was released today is a nightmare for small businesses like mine.
President Trump and the GOP have been saying their tax plan will help businesses like mine. Their main claim is that they are cutting the top tax rate from 39.6% to 25% for “pass-through” businesses that are structured as S-corporations, LLCs, and sole proprietorships in order to give small businesses a boost. But the truth is that the vast majority of small businesses don’t make enough money to fall into this tax bracket in the first place. In fact, about 86% of small already pay 25% or less. The real beneficiaries are the corporate lawyers, hedge fund managers, and real estate moguls who could exploit a new loophole for “pass-through” income.
Additionally, the GOP is not trumpeting another alarming truth about this bill - it eliminates several deductions that benefit middle and lower income taxpayers. This means the burden increases on small businesses and people who can least afford it.
While giant corporations are enjoying their tax break windfall, we on Main Street will see Medicaid, Medicare, and education cut by trillions because politicians claim a lack of funding.
Ultimately, we small business owners and our customers will have less money to spend, less security, and a bleaker future.
Halloween might be over but this tax bill is scary enough for small businesses like mine.
Heidi Liedeker, Meat for Cats and Dogs, Portland, OR