Republican tax plans strengthen small businesses and encourage innovation

The United States’ economic backbone was forged by the efforts of small businesses and entrepreneurs, and the vast majority of innovation in the U.S. is provided by smaller entrepreneurial companies. The House and Senate tax plans provide lower tax rates and deductions for small companies that provide the most innovation and jobs in America.

The Washington Examiner has the details:

To give this some context, there are approximately 3.4 million small companies that are classified as S corporations, LLCs or LLPs, and these firms employ more than 32 million people. That doesn’t even include sole proprietorships, which comprise 21.9 million of the 29.6 million businesses in the U.S. (Compare that with large firms that are S corporations, LLCs, or LLPs; they number fewer than 10,000 and employ 10.7 million.)

Under the Senate bill, the maximum individual tax rate for these “pass-through” firms would be 38.5 percent, but many firms would be able to deduct a significant share of their income, creating a lower marginal rate.

Under the Senate bill, the maximum individual tax rate for these “pass-through” firms would be 38.5 percent, but many firms would be able to deduct a significant share of their income, creating a lower marginal rate.

Under the House bill, the lowest rate for the smallest S corps and LLPs would go to 9 percent and would increase from there as the income level of the business increased.

After eight years of reckless government spending and overregulation under former Pres. Obama, it’s time to give families and small businesses some of their money back. Click here to support President Trump’s tax reform plan that will bring back innovation, protect small businesses and make America the world leader in creating world-class inventions once again!


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