Proposal Would Eliminate Deductions, Estate Tax
GOP presidential candidate Ben Carson outlined his Federal tax reform proposal, calling for a universal flat tax of 14.9 percent on individual and business income, with an exception for a modest or “de minimis” payment for those earning under 150 percent of the poverty line, currently $36,375 for a family of four. Carson’s plan also eliminates most deductions, such as those for charitable contributions, state and local tax payments, and mortgage interest. The Washington Times reported that Carson said in a statement, “My plan for a simple, fair and transparent flat tax will not only eliminate the onerous burdens the IRS places on taxpayers, but it will grow the economy.” Significantly, Carson’s proposal calls for a permanent end to the estate tax, or “death tax.” Since his announcement on Monday, Carson’s flat tax proposal has won plaudits from tax reform advocates and it has distinguished him in the presidential field.
What This Means For Small Businesses
While it is still early in the 2016 presidential campaign, Carson’s flat tax proposal stands out from the other candidates’ reform plans. That so many candidates are offering proposals to reduce the onerous burden posed by the Federal tax code is greatly encouraging for small business owners, who will find much to appreciate in Carson’s version of tax reform, particularly his call to end the estate tax, one of NFIB’s priorities.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.