Tax relief important to small businesses

In a recent blog post, 6th District congressional candidate Sean Casten outlined a platform that includes raising taxes on mature small businesses to their highest levels since the 1970s.

He wants to create a 39.6 percent tax rate for small-business owners earning $1 million or more a year in business income (the current rate is 37 percent); eliminate the qualifying business income (or QBI) deduction for up to one-fifth of profits; and uncap the Social Security wage base, which will increase the marginal rates by 12.4-percentage points on wage and self-employment income above $127,200.

Given his party's hue and cry about how the Tax Cuts and Jobs Act benefitted major U.S. corporations, it's a mystery why Mr. Casten wants to take away the modest benefits that small businesses got in the deal. And yes, it's still true that small businesses employ nearly half of U.S. workers and create more net new jobs than big business. So why the attack?

Illinois small-business owners here are feeling pretty good about the reforms coming out of Washington, but Springfield is still wrestling with the state's enormous pension debt, and Democratic leaders are now pushing for another multibillion-dollar tax increase by switching Illinois to a graduated tax structure.

We need leaders in Washington (and in Springfield) who understand that small business is the engine that drives Illinois' economy. We need tax policies that make it easier for small businesses to expand and that encourage them to create jobs.

Congressman Peter Roskam helped lead the passage of the Tax Cuts and Jobs Act. Instead of increasing taxes, Congress should work to make the small business and individual tax relief permanent.

Mark Grant, NFIB Illinois State Director

Springfield