To the editor, in response to Republicans launch into sales push for tax plan:
My entire job as a small business attorney is to review and advise my clients on whether something that is being proposed to them is a good or bad idea. With this tax bill, my clients and I are not buying the snake oil.
Often when the business is starting up, we help clients decide what type of entity to have, from S corporations, LLCs, partnerships and sole proprietorships. None of those entity types, which nearly ALL small businesses fall into, will benefit from the "corporate tax break" because NONE of those businesses pay a corporate tax rate. The business income passes-through for tax purposes to the individual owner, and is taxed at the owner's tax rate.
Republicans have tried to combat this criticism by instituting a reduction in the pass-through tax rate, but nearly all small business owners make far less than those who will benefit from the pass-through tax cut in this bill. Show me an owner pass-through business who is currently paying a 25% tax rate and I'll bet good money that person is a wealthy partner in a law or other professional firm. In fact, the Tax Policy Center ran the numbers and said that "the proposal would cut taxes for fewer than 5 percent of households in the middle quintile of the income distribution; those households would see an average tax cut of $370."
This is yet another anti-small business and anti-worker piece of legislation from the GOP. It doesn't help most Americans, and certainly not most small business owners, at all. Take it from me – I’m their attorney.
Main Street Alliance member
Founder, Davis Law Office