NSBA urges Congress to ensure that Small Businesses aren’t left on the hook for a massive tax hike in the budget resolution bill or any legislation passed in the 119th Session.
Ahead of a self-imposed deadline of Thurs., Feb. 13, House Speaker Mike Johnson (R-La.) announced draft text of a budget resolution in “one big, beautiful bill.”
Working quickly to avoid potential for inner-party dissension or collapse on consensus of proceeding with one budget bill or two, Republican leaders are working quickly to pass the resolution by a means of reconciliation – a procedural tool frequently used by slim-majority parties in Congress to minimize the need to negotiate with minority Members.
Lowering the vote threshold for passage to a simple majority, the resolution text sets new budget numbers that reconcile federal spending with policy of the new administration.
Still in early draft form, the bill is a package of respective parts – one for of each of the congressional committees, text from which was written to increase or reduce its numbers relative to the federal deficit.
Although these numbers are not direct spending amounts, Chairman Jodey Arrington (R-Tex.) and the House Budget Committee is reportedly set to hold a markup on the resolution on the day of the Feb. 13 deadline, with GOP leadership aiming to bring the bill to the House Floor for full vote shortly thereafter.
In addition to provisions for a $4 trillion debt limit increase, the following are the adjustments in numbers for each committee in the current resolution text.
1. Ag -$230B
2. Edu./Workforce -$330B
3. Energy & Commerce -$880B
4. Financial Services -$1B
5. Natural Resources -$1B
6. Oversight -$50B
7. Transportation -$10B
8. Ways & Means +$4.5T
9. Homeland +$90B
10. Judiciary +$110B
11. Armed Services +$100B
Coming in at a $4.5 trillion, Way and Means is currently carrying the highest price tag; however, this cost increase is due largely to a number of tax provision extensions, including several supporting the Small-Business community.
Read the statement from NSBA President and CEO Todd McCracken below, supporting Congress’ commitments to compromise for passing a resolution that keeps the government funded and open, as well as the full bill text here:
“We’re grateful to Chairman Arrington and House Leadership for their work on the recently unveiled Budget Resolution. This bill is a vital first step toward extension of critical tax provisions, like Section 199A, that main streets across America depend on. Without the extension of these provisions alongside the TCJA individual rate reductions, beginning at the end of this year, small companies operating as passthroughs will face a “one-two punch,” paying a higher percentage in tax on a higher proportion of their earnings. Small Businesses represent over 99 percent of all companies in the U.S. and employ nearly half of all private sector workers, yet are uniquely vulnerable to shifting tax burdens that threaten their survival.
We urge Congress to ensure that Small Businesses aren’t left on the hook for a massive tax hike.”
