TOP LINE: Ahead of tax day 2017, US Representative Keith Ellison and Minnesota State Representative Erin Murphy met with 15 Main Street Alliance Minnesota small business owners to talk about critical issues for small business owners when it comes to national and local budget plans.
For Immediate Release: April 17th, 2017
Contact: Corinne Horowitz (612) 232-1655
MINNEAPOLIS, MN — Congressman Keith Ellison and State Rep. Erin Murphy met with 15 small business owners, members of Main Street Alliance Minnesota, at Pizza Nea on April 17th, the day before tax day. With tax and budget key issues on both the state and federal levels right now, Rep Ellison, State Rep Murphy, and the small business owners talked about critical issues for small business owners when it comes to national and local budget plans.
Small businesses say investment in our communities, not tax cuts that disproportionately benefit multinational corporations, will help boost economic growth. What we’ve seen of Republican tax reform plans, however, include deeper cuts for big corporations without any benefits for Main Street and other average taxpayers:
Trump’s proposal maintains deferral, the biggest offshore loophole, and gives multinational corporations with profits stashed overseas an undeserved tax break of more than $550 billion.
Trump’s plan also slashes corporate tax rates from 35 percent to 15 percent, losing $2.6 trillion in tax revenue over 10 years.
The House GOP trotted out a new lower rate for “pass-throughs” as a way to benefit small businesses, but most small business owners wouldn’t see a dime. Pass-through income is highly concentrated among the top 1 percent of households, or those with incomes above $639,500 in 2016. President Trump, who is the principal owner in approximately 500 pass-throughs, better exemplifies the type of business owner who would benefit from this type of tax cut.
“The Trump tax proposal is bad for our community and bad for small business. Large corporations with giant profits and the wealthiest Americans shouldn't see huge tax cuts, while our local communities suffer. We need lawmakers in Washington, and right here in MN, to close the loopholes that help large companies avoid paying their fair share, so that we can invest in our communities," said Danny Schwartzman, owner of Common Roots Cafe and Catering.
“The strength of my business relies on the health of my employees. I pay my fair share of taxes, and I know that my tax dollars support critical government investments and services that my business, my community and my employees rely on,” said Mike Calawerts, owner of Orangetheory Fitness in Uptown and Edina.
“Small businesses that have long invested in their communities pay their fair share of taxes while the larger corporations exploit loopholes and rig the system in order to pay the lowest taxes in the past 40 years. That's not right, especially when small businesses contribute so much to our community,” said Rep. Ellison. “This country was founded on the principle of fairness and equality under the law. It’s time our tax code reflected that value.”
Businesses also talked about the MN Budget targets. The House allocated $1.8 billion for tax cuts in FY 2018-19, and $599 million in cuts to Health and Human Services.
“These types of tax cuts are alarming. They reduce local revenue, and potentially gut important programs that keep my community and customers prosperous. Ultimately, this type of tax reform hurts small businesses,” said Holly Hatch- Surisook, owner of Sen Yai Sen Lek.
“This tax bill sends tax money out of the state benefiting owners of large corporations who don’t live in Minnesota, not small business owners who live here,” said Todd Mikkelson, owner of Sprayrack in Orono. “The surplus provides us the revenues needed to fix things we’ve been neglecting for decades. Fixing infrastructure so we can deliver our goods affordably, passing a transportation bill so our employees and customers have better access to us - these are things that would help small business owners."
"For a small business to thrive, the community that surrounds it must also. A healthy, thriving community is one in which its residents are making ends meet for themselves and their family, where their kids have access to a high-quality education, and everyone has health care they can count on. This takes an all hands on deck approach, where everyone plays their part. When Minnesotans and their communities thrive, then so do our small businesses. Our politics and our policies should support that,” said Erin Murphy, State Representative (64-A).