TOPEKA, Kansas (WIBW) – The Kansas National Federation of Independent Business has called on Kansas lawmakers to step in as uncertainty about the future grows in the wake of the COVID-19 pandemic.
The Kansas National Federation of Independent Businesses said it was one of many groups to sign a letter urging the Kansas congressional delegation not to raise revenues for legislative priorities at the expense of small business owners. He also reminded the delegation that the tax increases currently under discussion would be detrimental to the investments needed to continue to grow both in the state and across the country.
The NFIB also said it opposes proposals to repeal the increased base and impose additional capital gains on death from the date.
“The elimination of the increased base on death will result in devastating tax obligations for people who inherit a business or farmland and will be a blow to many family businesses looking to continue their operations in future generations. “said the Federation.
In addition, the NFIB said that one of the most important provisions of the Tax Cuts and Jobs Act of 2019 was to reduce the federal corporate tax rate, which went from 35% to 21%.
Before tax reform, the NFIB declared the U.S. corporate tax rate to be the highest in the world. In fact, among the Organization for Economic Co-operation and Development countries, he said the US rate was the highest.
Overall, the NFIB said that a lower Kansas corporate tax rate for job creators would mean businesses would have more money to reinvest in their business, their workforce and their employees. communities. For mid-size businesses, he said the creation of the Section 199A deduction had saved small business investment and optimism.
âMany businesses in our state are still trying to recoup the income and jobs lost due to the COVID-19 pandemic. The repeal of the increased base and the application of the capital gains tax on the date of death will negatively affect multigenerational family businesses for years to come. Now is the worst possible time to raise the corporate tax rate and eliminate a key deduction for small business owners, âsaid Dan Murray, state director of the NFIB in Kansas.
The NFIB also released its Small Business Optimism Index on Thursday, September 14, which rose in August. He said five of the index’s 10 constituents improved, four declined and one remained unchanged. Meanwhile, the NFIB Uncertainty Index declined seven points to 69, which is the lowest level since January 2016.
âThere are a number in this latest survey that should affect all Kansans,â said Dan Murray, state director of the NFIB in Kansas. âIn the past month, 6% of our small business owners said they were uncertain about the future. It is not a good sign. In order to recover from this pandemic, our small business owners must lead the way. They are the backbone of our economy and if they are not optimistic about the future, that is a great cause for concern. “
The Federation said homeowners who expect better trading conditions over the next six months fell eight points to a net -28%. He said that marker fell 16 points since August to its lowest level since January 2013.
The NFIB also said 50% of owners reported vacancies that could not be filled, which was up one point from July and is a 48-year record for the second month in a row.
To read the full NFIB Small Business Optimism Index, click HERE.
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