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Small-business leaders tout GOP tax plan amid criticism

WASHINGTON — Small-business leaders flocked to the Capitol on Tuesday in support of the GOP tax plan despite criticism that the tax cuts favor corporations over smaller entrepreneurs.

Joined by Linda McMahon, head of the Small Business Administration, the heads of leading small business, retail and service organizations said they support the Senate GOP tax plan because it’s better than the current tax system.

“There’s no question that you are going to see more jobs and more economic growth,” said Juanita Duggan, president of the National Federation of Independent Business.

Matthew Shay, president of the National Retail Federation, acknowledged there will be tax differences based on the nature and structure of each business, but “we think on balance everyone is going to end up in about the same place.”

Small retailers are supportive because “it’s still better for them than what they’ve got now,” Shay told The Post in an interview.

Efforts are under way to make changes to the bill to get more GOP senators on board — including Sens. Ron Johnson (R-Wis.) and Steve Daines (R-Mont.).

They have expressed frustration that corporations get a better tax break than small businesses that file taxes as individuals, known as pass-through entities.

Under the Senate plan, corporate rates are being cut from 35 to 20 percent, while on the individual side, the highest rate would be 38.5 percent. Corporations could deduct state and local taxes as business expenses, whereas small business — like individuals — would lose that tax break under the Senate plan.

Eliminating the state and local tax deduction would hit hardest at high-tax states like New York, New Jersey and California.

One option to improve parity is to increase the amount pass-through businesses can deduct from 17.4 percent in the Senate plan to 20 percent. Small-business leaders said that while they accept the plan as is, they’d welcome any additions to level the playing field.

Source: https://nypost.com/2017/11/28/small-business-leaders-tout-gop-tax-plan-amid-criticism/

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