SAF, MAIN STREET COALITION CALL FOR “SIMPLER, FAIRER” TAX CODE
As the leader of the National Main Street Business Coalition, the Society of American Florists (SAF) joined with 16 national and state trade associations to send a letter in April to Congress urging legislators to simplify the tax code and reduce compliance costs.
Citing compliance costs that are 65 percent higher for small businesses than large ones, the Coalition asked the House Ways & Means Committee, as it considers changes to the tax code, for a “simpler, fairer compliance system for Main Street that allows for investment and innovation without significantly increasing the effective tax rate.”
The letter applauded the Committee’s draft provisions that simplify cash accounting principles for businesses with less than $10 million in annual revenue.
The Coalition also recommended the use of “checkbook accounting,” where the taxable income of a business would simply be receipts minus expenses, removing the complicated depreciation calculations for investments and property (with the exception of land and buildings).
Such a move, the letter said, “would encourage robust investment by America’s small entrepreneurs.”
Finally, the Coalition asked that businesses of any size and type benefit from the same enhanced deductions of inventory donations to charities as the largest C-corporations can do.
“Access to the 170(e)(3) deduction for charitable donations of inventory could provide some incentive for businesses in all industries to contribute and support charities more effectively,” the letter said.
The recommendations were included in a May 6 report by The Joint Committee on Taxation to the House Ways & Means Committee.
SAF encourages everyone in the floral industry to keep the momentum going by sharing this information with every independent business owner they know.
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