The National Federation of Independent Business, a leading small business lobbying group, on Wednesday threw its support behind the Senate’s tax overhaul plan.
“The Chairman’s Mark will provide much needed tax relief to enable small businesses to grow and create jobs,” NFIB President and CEO Juanita D. Duggan wrote in a letter to Finance Committee Chairman Orrin G. Hatch.
“NFIB strongly supports and urges the committee to adopt the Chairman’s Mark,” she wrote.
Mr. Hatch on Tuesday issued modifications to his original plan, released last week, that make it easier for smaller “pass-through” companies that file their taxes as individuals to claim a new 17.4 percent deduction.
Buy-in from small business groups will be key to getting tax reform across the finish line. The NFIB opposed the original House plan, but came around after Ways and Means Committee Chairman Kevin Brady made some modifications on pass-through provisions.
As Republicans had indicated Tuesday, Mr. Hatch also added a repeal of Obamacare’s individual mandate to the Senate tax plan.
SEE ALSO: Senate GOP to include repeal of Obamacare mandate in tax-cut bill
The move would generate more than $300 billion over 10 years that Republicans plan to use to lower taxes elsewhere, though congressional scorekeepers have projected that it would result in millions fewer having health insurance without pressure from the mandate.
“The individual mandate isn’t just any tax — it’s a terribly regressive tax that imposes harsh burdens on low- and middle-income taxpayers,” Mr. Hatch said Wednesday as his committee continued considering the plan.
Another major change would sunset the individual income tax cuts in the plan after 2025, while keeping permanent a new 20 percent corporate tax rate. The new corporate rate would be down from 35 percent.
“Bottom line — my colleagues on the other side have now shown their hand,” said Sen. Ron Wyden, the committee’s ranking Democrat. “The corporate handouts are permanent; the family breaks aren’t. In fact, they don’t even make it a full decade.”
The House version also makes temporary some breaks, like a new family credit.
But House Speaker Paul D. Ryan said this week that lawmakers designed the plan that way with an eye on budget rules limiting the total package to $1.5 trillion, and that they anticipate future Congresses will simply extend the expiring provisions.
“The point is to get this policy in place,” Mr. Ryan said. “We do not intend to have these sunsets occur, but we had to do this to make it compliant.”
• David Sherfinski can be reached at dsherfinski@washingtontimes.com.
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