Washington DC – Today, Chairman Roger Williams (R-Texas) led the full Committee with the title “Small Business Committee Hearing.''Tax Day: Explore the negative effects of high taxes and complex tax laws. ” Chairman Williams issued the following statement after today's hearing.
“We are very grateful that today's hearing focused on how high taxes can suffocate businesses, especially small businesses.” Chairman Williams said. “At a time when small businesses face severe economic headwinds, the Biden administration is trying to tax them into oblivion. And I think we've fundamentally proven that it's good for the American economy. We in Congress must work to make sure this tax code works for our nation's entrepreneurs, not against them. not.”
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Watch the full hearing here.
Below are key excerpts from today's hearing.
Chairman Williams: “Tax policy is the most important thing we can do to help all entrepreneurs facing these challenges. And if business owners can keep some of their profits, , instead of just putting it in the bank and leaving it, we use it. They use it to hire additional workers, generate more taxpayers, or keep their businesses growing. or purchase equipment. So, Mr. Huff, can you talk about how you've been able to take advantage of the 199A small business deduction to grow your business? More generally, you've been able to keep more of your hard-earned money in your pocket. What would you do if you could?” Mr. Huff: “In my case, I didn't understand the tax code. Then in 2019 my CPA called me and said, 'You invested in equipment and operated a self-service store. 199A and bonus depreciation. Amortization is available.'' I said, “What does that mean?” He says, “That means you have more cash.” I was shocked. I call it an Easter egg. I didn't know it had such an effect. By doing so, we had extra cash to invest in additional technology in 2019 to actually keep our stores open during the pandemic. So the 199A and bonus depreciation were very helpful in his two years. ”
Congressman Mueser: “Mr. Wetherington, the R&D tax credit. It's very important. I was looking at your product. Of course, there's a lot to it. Design engineers, including engineers of all kinds, It decreased by 20 percent or is still decreasing. How has it affected your business, profitability, employment, growth, R&D investment?” Mr. Wetherington: “Well, as I mentioned in my testimony, this has delayed a major redesign of two of our flagship products that account for 80 percent of our product revenue. We expect that once these start, we will grow by 50%, but without the certainty of R&D tax credits we will not be able to cover the costs, so we will have to continue to push it forward. It doesn't have to be. Let's go back to code predictability and consistency. ”
Rep. Van Dine: “I'm very happy to hear from small business owners, independent merchants, and others who have been able to take advantage of the TCJA. Mr. Hedlund, let me tell you that President Biden's budget includes a number of new tax provisions. Included: Are there any specific proposals that you think are the worst for small businesses?” Dr. Hedlund: “There are a lot of bad options to choose from. It’s hard to choose one, but I think the worst thing we can do for the economy right now is raise taxes. People are already paying inflation taxes and regulatory taxes. This would further exacerbate the cost of living crisis, worsen economic growth and be bad for the economy.” Rep. Van Dine: “You've probably heard President Biden say repeatedly that he won't tax anyone who makes less than $400,000. Is that accurate? ” Dr. Hedlund: “Well, that promise has already been broken. Like I said, the inflation tax. The typical American family lost $4,000 in real income due to inflation. The situation will only get worse when thousands of dollars worth of tax breaks for them expire.”
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