Legislation recently introduced by U.S. Rep. Randy Hultgren (R-IL) would provide tax relief to small businesses and ease administrative burdens to help grow the economy.
Hultgren appeared at La Huerta Supermarket in St. Charles, Ill., to unveil the Bring Small Business Back Tax Reform Act, H.R. 5374.
“I grew up in a small business, and I am familiar with the struggles they face,” Hultgren said. “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.”
The Bring Small Business Back Tax Reform Act would establish a new 10 percent tax rate on a business’s first $150,000 of pass-through income and a 20 percent tax rate for a business’s first $1 million.
“Small businesses like La Huerta Supermarket are the engine of America and employ more than 2.4 million workers in Illinois alone,” Hultgren said. “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.”
The bill would also allow immediate expensing of investments in equipment by pass-through businesses and simplify cash accounting for businesses with gross receipts of less than $25 million.