- - Wednesday, May 27, 2015

As a small-business owner, I am concerned by what I’ve read and heard regarding Congress‘ efforts to overhaul our overly burdensome tax system. I support reforming the tax system to make it simpler and easier for all businesses to understand, but I worry that what Congress is proposing will be a tax-reform system geared toward large corporations, and that it will leave small businesses holding the bag and without any relief.

As you continue to work on tax reform, Congress, I would ask that you treat S Corporations and C Corporations the same and not give bigger tax advantages to C Corporations. Lowering the corporate tax rate for C Corporations without leveling the playing field for S Corporations would create a competitive advantage in favor of C Corporations.

In my view, effective tax-rate parity between C Corporations and pass-through entities defines true tax reform. Effective tax-rate parity cannot be achieved if the tax rate for C Corporations is reduced by nearly 30 percent, giving them a 15-point advantage over pass-through entities.

Rewriting our tax code so that all businesses receive a fair shake is the only approach Congress should consider. The only way to accomplish this is through a comprehensive approach to tax reform. As a practical reality, no combination of credits, deductions or exclusions will bring about tax-rate parity and produce a fair, simple, transparent and pro-growth tax code.

President Obama’s approach to tax reform, seemingly endorsed by a large number in Congress, is contrary to the aim of true tax reform and contrary to the mission of small businesses all across this country. Real tax reform means a tax code that no longer picks winners and losers depending on how a business is legally structured or its particular industry.

Congress should not consider an approach that would disadvantage businesses that employ two-thirds of America’s workers, create more jobs and pay more in taxes.


West Friendship, Md.

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