Trump-Republican Tax Giveaway Impact on Main Street Small Business Owners
Summary of Trump-Republican Tax Giveaway
Republicans jammed through the Trump-Republican Tax Giveaway to give a massive tax cut to wealthy donors and big corporations at the expense of Main Street. It balloons the federal deficit by $1.5 trillion, gives billions of dollars in tax breaks to corporations to outsource jobs, leaves 13 million Americans without health coverage, and Republicans want to pay for it with trillions of dollars in cuts to Social Security, Medicare, Medicaid, education and other critical programs small business owners and our communities rely on.
For Immediate Release
January 31, 2018
Contact: Corinne Horowitz
MINNEAPOLIS, MN -- Following last night’s State of the Union, Minnesota business owners took to Twitter to voice concerns about the ramifications for Main Street of the GOP’s new tax law and the most recent attack on immigrants.Read more
Washington, DC -- Today in Missouri, President Trump stumped for the business tax cuts he’s been pushing for months, warning that he “really doesn’t want to be disappointed” when Congress returns to Washington next week.Read more
As part of National Small Business Week (June 17-21), small business owners from across the Main Street Alliance network are speaking out on the top issues facing the nation.
Each day during Small Business Week, we're releasing a new "Straight Talk on Main Street" issue fact sheet providing unique small business perspective and analysis, on the following schedule:
- Monday - IMMIGRATION REFORM: Immigration reform with a roadmap to citizenship strengthens consumer demand, boosts economy
- Tuesday - TAX FAIRNESS: Ending offshore tax dodging will level playing field for small business
- Wednesday - HEALTH CARE: Small business owners preparing for full implementation of health care reform
- Thursday - ECONOMY-BOOSTING JOBS: Small business engagement critical to growing momentum on Paid Sick Days
- Friday - MONEY IN POLITICS: Small businesses seek greater disclosure of secret political spending by corporations and trade associations
On April 9, the Main Street Alliance and the American Sustainable Business Council released the results of new scientific polling of small business owners on corporate tax reform. The scientific live phone survey of 515 small business owners nationwide found small business owners strongly oppose a "territorial" tax system (which would permanently exempt offshore profits from U.S. taxation) and support proposals to close overseas tax loopholes and end deferral of U.S. taxes on profits corporations make or shift offshore.
Small business owners see corporate tax loopholes and accounting gimmicks used to shift U.S. profits offshore to avoid taxes as serious problems, according to independent nationwide opinion polling released on February 6. Small business owners say big corporations and the wealthy don’t pay their fair share of taxes. They support increasing taxes on millionaire incomes, allowing high-end tax cuts to expire, and closing the carried interest loophole that gives big tax breaks to hedge fund managers.
These are among the key findings of a scientific nationwide survey of small business owners commissioned by the American Sustainable Business Council, Main Street Alliance and Small Business Majority.
April 12: Report: Tax Haven Abuse Shorts U.S. Treasury to Tune of $2,116 for Every Small Business in America
FOR IMMEDIATE RELEASE: Thursday, April 12
CONTACT: Rachel Tardiff, rachel[at]fitzgibbonmedia.com
REPORT: TAX HAVEN ABUSE BY U.S. CORPORATIONS SHORTS U.S. TREASURY OF REVENUES TO TUNE OF $2,116 FOR EVERY SMALL BUSINESS IN AMERICA
Main Street Alliance joins U.S. PIRG, Rep. Van Hollen, Business for Shared Prosperity to release report highlighting cost of tax haven abuse to small businesses
** State by state numbers on cost of tax haven abuse to small businesses available **
Washington, DC – On Thursday morning, the Main Street Alliance joined U.S. PIRG, Congressman Chris Van Hollen, Business for Shared Prosperity and the American Sustainable Business Council at a Capitol Hill press conference releasing U.S. PIRG’s new report “Picking Up the Tab: Average Citizens and Small Businesses Pay the Price for Offshore Tax Havens.”
According to the report, tax haven abuse by U.S. corporations shortchanges the U.S. Treasury of revenues by an average of $2,116 for every small business in America (using Census numbers for businesses with fewer than 100 employees). Click here to read the report (small business section on page 10, state by state tables on pp. 17-18).
“When big corporations use loopholes and tax havens to avoid paying taxes, they’re robbing our country of the revenues we need to invest in our future and support small businesses,” said Aimee McQuilkin, owner of Betty’s Divine, an independent clothing boutique in Missoula, Montana and a leader with the Montana Small Business Alliance and Main Street Alliance. “If you want to fly the American flag outside your corporate headquarters, you should pay your way.”
Joseph Rotella, owner of Spencer Organ Company in Waltham, Massachusetts and a leader with Business for Shared Prosperity, spoke at the report release event on Capitol Hill. “While I’ll be paying my taxes – investing in the public infrastructure and services that underpin our economy – many profitable large corporations will be paying a lower tax rate than me or not paying taxes at all,” Rotella said. “That puts small businesses at a competitive disadvantage and undermines our nation. We need to stop the tax haven abuse that lets big corporations avoid paying their fair share and gives them an unfair advantage in the marketplace.”
According to a Senate investigation, the U.S. Treasury loses an estimated $100 billion a year due to tax haven abuse, with $60 billion of that being tax avoidance by U.S. corporations.
In a recent scientific survey of 500 small business owners nationwide, nine out of ten small business owners say U.S. multinationals’ use of accounting loopholes to shift profits to offshore subsidiaries to avoid taxes is a problem. Three quarters of small business owners say their small business is harmed when loopholes allow big corporations to avoid taxes. And more than two thirds of small business owners believe big corporations are not paying their fair share of taxes. Full survey results are available here: http://bit.ly/report-taxes
The Main Street Alliance, Business for Shared Prosperity, and other business groups have signed on in support of the Stop Tax Haven Abuse Act and the CUT Loopholes Act, bills sponsored by U.S. Senator Carl Levin to rein in tax haven abuse and recover lost revenues.
Click here to read the “Picking Up the Tab” report: http://uspirg.org/reports/usp/picking-tab
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A few days ago, the Main Street Alliance asked small business owners to share what they wanted to hear the President talk about in his upcoming State of the Union address.
We asked: “As a small business owner, what policies would you like to hear the President put forward in the State of the Union Address as part of a vision for supporting small businesses and building an economy that works for the 99 percent in 2012?”
Here are some excerpts from responses we got:
Deborah, owner of a printing and design company in Oregon:
“Help Americans who are having problems with their mortgages – by helping them not lose their homes, they will have more discretionary income to spend and that income can be used to support their local businesses.
“Eliminate tax breaks for large corporations – if they are not keeping their money in the U.S., they should not receive tax breaks.
“And keep on creating jobs – we are a consumer-driven economy and without jobs, Americans do not have money to consume which causes a snowball effect and decreases sales for small businesses.”
Mario, owner of a tax preparation business in Illinois:
“Shine a light on corporate political spending that tilts the playing field against small businesses.”
Bob, owner of a professional training business in Ohio:
“Small and micro businesses do not worry about regulations and taxes. We worry about consumer demand and consumer confidence that promotes business growth. The one percent worry about taxes and regulations so they can play the system to their own advantage.”
Jim, owner of an auto repair shop in Oregon:
“We have so many hard working Americans who can't find jobs. Right here in Portland, many young people are looking for work. They joined the Occupy movement to get some attention for their plight. We have so much work that needs to be done. Teachers need to be rehired, schools and other public buildings need to be upgraded for energy efficiency. And, according to the Wall Street Journal, some of our biggest corporations are hoarding trillions of dollars right now. If they and other wealthy Americans were paying their fair share in taxes, this country would have the money necessary to engage small businesses to hire people into meaningful work, and I would have customers again. When the economy gets back on its feet, then we’ll have the tax revenues needed to pay down our deficit.”
Jose, owner of a real estate agency in Oregon:
“We, small business owners, are an optimistic bunch. We also get right to the point. We need the State of the Union address to set the tone for a great 2012. We do not have a lot of time to complain, as we have to work with the hand we are dealt. The one issue which would bring me more customers and allow me to hire more employees is comprehensive immigration reform. Our housing industry is stalled and motivating a new generation of homebuyers to enter the market will be a big step in the right direction. Our immigration system has to be fixed...let's do it right this time!”
Halcyon, owner of a retail shop in Maine:
“By reducing military spending and ending the wars, we will be able to afford to offer every citizen the basic coverages of health care, increasing job security and mobility, and business formation. We’ll be able to reduce business expenses substantially for Main Street businesses in low population, greying regions of our country – like rural Maine – and make sure fewer of our health care dollars go into the pockets of corporations and more into the delivery of health care.”
Kelly, owner of a custom woodworking business in New Jersey:
“I would like to hear the President talk about 'Real American Companies' and highlight the real contributions they make by employing people here, paying taxes here, and investing here. The President could announce a program to recognize and reward ‘Real American Companies.’ I keep thinking of a heavy machinery company that could build their machines in China, but they don’t. They have kept American jobs – high skill, high paying jobs – here, along with profits and reinvestment, so they should get a business version of the Medal of Freedom.
“This award could include a ‘Presidential Flag’ to be flown outside the corporate headquarters of companies that have won the award. Of course, we could have another award – a corporate turkey award – for companies that cheat on their taxes, move profits and jobs offshore, or manipulate the law in other ways to cheat their employees and the communities that support them.”