By Masaru Torito owner of Kokoro Restaurant, in Denver and Small Business for America’s Future Council Member
As a small business owner in Colorado, I’m deeply troubled by the House’s budget resolution that would extend the failed Tax Cuts and Jobs Act while recklessly cutting critical programs that support our communities. The TCJA has created a two-tier tax system that puts small businesses at a competitive disadvantage against large corporations.
A recent Small Business for America’s Future survey demonstrates this clearly: while 91% of small business owners believe the tax code favors big businesses, only 6% of small business owners were able to grow their businesses by purchasing new equipment or expanding operations under the TCJA. Just 3% created new jobs. Meanwhile, big corporations received permanent tax cuts that immediately benefited their bottom lines.
The resolution’s proposed reckless $2 trillion in spending cuts, impacting healthcare programs like Medicaid, would have devastating effects on many small business employees and the overall economic health of our communities.
Small businesses are the backbone of communities across Colorado. We deserve a tax code that works for us, not just for large corporations with teams of accountants and lawyers. The complexity of our current tax system diverts resources from growth and innovation.
Instead of extending policies that have failed small businesses, Congress should focus on practical solutions like exempting the first $25,000 of small business profit from federal income tax and creating a simplified standard deduction for small businesses. The Senate must reject this misguided budget resolution and prioritize tax policies that truly support Main Street entrepreneurs.
About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visit www.smallbusinessforamericasfuture.org.
Masaru Torito is the owner of Kokoro Restaurant in Denver and a Small Business for America’s Future Council Member