Congressman Hultgren Announces Legislation to Help Small Businesses Succeed at La Huerta Supermarket
Campton Hills, IL — U.S. Representative Randy Hultgren (IL-14) today announced the introduction of H.R. 5374, the Bring Small Businesses Back Tax Reform Act, at La Huerta Supermarket in St. Charles, Illinois. The bill provides immediate tax relief and reduces administrative burdens on a class of U.S. businesses that has proven itself vitally important to American workers and the economy at large.
(Rep. Hultgren tours La Huerta Supermarket with Laz Marquez, President)
“I grew up in a small business, and I am familiar with the struggles they face. Whenever I travel throughout my district, small and mid-market business owners tell me that among many obstacles they face to expanding their operations and hiring more workers, high taxes remain central,” said Rep. Hultgren. “Small businesses like La Huerta Supermarket are the engine of America and employ more than 2.4 million workers in Illinois alone. Yet governments tax their capital like it is personal income, and it isn’t working. As small businesses go, so goes the American economy. It is time we give them the freedom, means and flexibility to expand and create jobs. My bill will give these employers room to grow by giving them back time and resources.”
A national poll conducted by Job Creators Network shows that only one-in-five of small business owners plan to hire more employees over the next year. Among other challenges, small business owners cite their tax burden as a main obstacle to growing their business. Pass-through businesses, organized as S Corporations, sole proprietorships, partnerships, and LLCs, comprise more than 60 percent of American companies and more than 50 percent of private sector jobs. Because these businesses “pass through” income and losses to the owner(s), many are subject to combined state and federal income tax rates over 50 percent.
Key provisions of the Bring Small Businesses Back Tax Reform Act include:
- A new 10 percent tax rate on a pass-through business’s first $150,000 in income and a 20 percent tax rate on a business’s first $1 million.
- Immediate expensing of all investment in equipment by pass-through businesses.
- Simplified cash accounting for tax purposes for all businesses with gross receipts under $25 million.