Today an op-ed authored by PMSE Executive Director Chris Smith appeared in The Hill entitled: “Main Street Businesses Deserve Tax Parity with American Corporations,” making the case that implementation of the newly revised tax code should support Main Street employers, and not work against them.
Now that historic tax reform is done, it’s time for the Congress, the Treasury, and the IRS to work through how to implement the details of the new law. For Main Street employers, the stakes couldn’t be higher. As the dust settles, it is becoming clear that there is unfinished business when it comes to tax parity for American employers…
The Parity for Main Street Employers coalition is committed to improving the new law by focusing on three key areas. First, we will work with the Congress and the Administration to ensure the new deduction applies broadly, and benefits bone fide Main Street businesses with real payrolls and real profits…Second, we will seek to restore parity by allowing pass-through businesses to fully deduct their state and local income taxes, just like all C corporations…Third, we will begin work now with Main Street allies to make permanent a workable and sustainable pass-through deduction…
While the corporate reforms in the new tax law are positive and pro-growth, the treatment of pass- through businesses still remain a work in progress. We need a tax system where employers on Main Street have tax parity with those traded on Wall Street. The three steps outlined above will help move us closer to that important goal.