November 18, 2024
Washington, D.C. – Main Street Alliance (MSA) and Small Business Majority have launched the Small Business Tax Fairness Coalition (SBTF), a national initiative to advocate for a tax code that prioritizes the needs of America’s entrepreneurs. This partnership comes as Congress prepares to renegotiate the Tax Cuts and Jobs Act (TCJA) ahead of the sunset of many of its key provisions in 2025—a pivotal moment for small businesses across the country.
Today’s tax code disproportionately benefits large corporations and high-income individuals, leaving small business owners with limited support. According to recent research by Small Business Majority, 82% of small businesses believe the tax system favors large corporations. Moreover, data shows that the 20% pass-through deduction under TCJA has funneled 70% of its benefits to the top 4.5% of recipients—primarily white-owned firms—leaving many small, minority-owned businesses behind.
“The current tax system does not reflect the vital contributions of small business owners to our economy,” said John Arensmeyer, CEO of Small Business Majority. “With this partnership, we aim to ensure that tax policy reflects the needs of the smallest, most underserved businesses that drive job creation and local economic growth.”
The Executive Director of Main Street Alliance, Richard Trent, echoed this sentiment: “Small businesses are the backbone of our communities, yet they often bear an outsized tax burden. Through SBTF, we are giving entrepreneurs a powerful platform to advocate for equitable tax reforms that prioritize Main Street over Wall Street.”
Key Priorities for Tax Reform
The Small Business Tax Fairness Coalition will focus on two core areas:
Implementing Bottom-up Tax Reform for Main Street
- Reformed Pass-Through Deduction: Adjust the 20% 199A small business pass-through deduction to benefit lower- and middle-income business owners, ensuring equitable support across all business types. This includes a potential standard deduction for all small businesses instead of the current deduction that favors those with larger profits and higher marginal rates.
- Care Economy Investments: Advocate for maintaining the expanded Affordable Care Act Premium Tax Credit and expanding the Child Tax Credit, enabling small businesses to attract and retain employees through affordable healthcare and childcare access.
Revenue Raisers
- Corporate Tax Rate: Advocate for a fair corporate tax rate that balances the playing field between large corporations and small businesses. According to recent data, only 5% of all small businesses are organized as C-corporations.
- IRS Funding: Push to maintain robust IRS funding to ensure large corporations are paying what they owe while ensuring better customer service and tax assistance for small businesses.
A Timely Opportunity
As Congress debates the future of the tax code, small businesses have an unprecedented chance to shape policies that directly impact their livelihoods. MSA and Small Business Majority will elevate the voices of entrepreneurs through:
- Surveys and data collection to capture the challenges faced by small businesses;
- Testimonial campaigns to share real-world impacts of the tax code on small businesses;
- And advocacy events, including one or more “fly-ins” where small business owners meet directly with lawmakers.
This partnership underscores the critical role small businesses play in shaping a thriving, equitable economic future. As Congress approaches a historic renegotiation of the tax code, MSA and Small Business Majority are ensuring that Main Street voices are heard loud and clear.
A Call to Action
Main Street Alliance and Small Business Majority invite small business owners, policymakers, and community members to join the Small Business Tax Fairness Coalition. Together, we can push for a tax system that fosters entrepreneurship, creates quality jobs, and strengthens local economies.
For more information, email the Main Street Alliance or Small Business Majority media contacts below.
Media Contact:
Yash Mori (MSA Communications Strategist)
Simon Brown (SBM Director of Public Relations)
