Tax relief at both the state and federal level is a top priority for small business owners.
austin (April 22, 2024) – In a conversation with Brad Swale on the Texas Talks Podcast. NFIB State Director Jeff Burdett He highlighted a variety of issues that Texas small business owners are tracking at the state and federal level, including inventory tax relief and the need to make the 20 percent small business deduction permanent.
When asked about NFIB recent reportsBurdett revealed that small business optimism has reached its lowest level since 2012, noting that uncertainty is exacerbating the challenges faced by job creators.
“These companies circle the wagons and try to deal with what's in front of them, but it's very difficult to try to predict the future. Small businesses have low levels of consistent and fair regulation. We need a tax environment that is light, fair and consistent.”
Pointing to the passage, Texas Regulatory Integrity Act As the latest victory for Texas Main Street, Burdette highlighted how this bill will ease the regulatory and compliance burden on small business owners.
“It was a great bill by Rep. Burroughs and Sen. Clayton, HB 2127. And it would create regulatory consistency by pre-empting some of the local regulations in the Texas Legislature or areas where federal regulations are already in place. has been secured.”
warning against Federal taxes on small businesses will increase in 2025Burdett pointed to the bipartisan support in Texas' Congressional delegation for making the 20 percent small business deduction permanent.
“If the Small Business Tax Credit is not made permanent, at least 80 percent of businesses here in Texas will face a 20 percent tax increase in 2025. With bipartisan support, Congressman Henry Cuellar is one of the main authors of this bill. It must cross the finish line by the 2025 expiration date. Small businesses are already operating on thin margins, and a 20% tax increase would be devastating. This is our biggest challenge at the federal level.”
Finally, Mr. Burdett reiterated the NFIB's support for reforming the state inventory tax, a high tax borne by Texans.
“The governor and lieutenant governor have talked about raising the exemption to $100,000. That would certainly make a dent. If you're doing some work, you're paying for raw materials, so you're paying sales tax. This is something that all companies would like to see abolished or fixed in some way. I think it's about being there.”
click here To hear the entire conversation.