December 10, 2022

TOPEKA, Kan. (WIBW) – The National Federation of Independent Business in Kansas has asked Kansas Legislators to step in as uncertainty for the future rises in the wake of the COVID-19 pandemic.

The National Federation of Independent Business in Kansas says it was one of several groups to sign a letter to urge the Kansas Congressional delegation to not raise revenue pay for legislative priorities on the backs of small business owners. It also reminded the delegation that the tax increases currently being discussed would be detrimental to investments needed to continue growing both in the state and across the country.

The NFIB also said it opposes proposals to repeal stepped-up basis and impose additional capital gains at death of date.

“Elimination of stepped-up basis at death will lead to devastating tax liabilities for individuals who inherit a business or farmland and issue a crushing blow to many family-owned businesses who are looking to continue operations into future generations,” said the Federation.

Additionally, the NFIB said one of the most significant provisions of the Tax Cuts and Jobs Act of 2019 was to lower the federal corporate income tax rate, which decreased from 35% to 21%.

Before the tax reform legislation, the NFIB said the U.S. corporate tax rate was the highest in the world. In fact, among countries the Organization for Economic Co-operation and Development, it said the U.S rate was the highest.

Overall, the NFIB said a lower corporate tax rate in Kansas for job creators would mean businesses have more money to reinvest in their company, workforce and communities. For pass-through businesses, it said the creation of the Section 199A deduction added to record small business investments and optimism.

“Many businesses in our state are still trying to recover revenues and jobs lost due to the COVID-19 pandemic. Repealing stepped-up basis and enforcing capital gains taxes at date of death will negatively alter multigenerational, family-owned businesses for years to come. Now is the worst possible time to increase the corporate tax rate and eliminate a key deduction for small business owners,” said NFIB State Director in Kansas, Dan Murray.

NFIB also released its Small Business Optimism Index on Thursday, Sept. 14, which increased in August. It said five of the 10 Index components improved, four declined and one remained unchanged. Meanwhile, the NFIB Uncertainty Index decreased seven points to 69, which is the lowest level it has been since January 2016.

“There’s a number in this latest survey that should have all Kansans concerned,” said Dan Murray, NFIB State Director in Kansas. “In the last month, another 6 percent of our small business owners are saying they are uncertain about the future. That’s not a good sign. In order to recover from this pandemic, our small business owners need to lead the way. They are the backbone of our economy and if they are not optimistic about the future, this is a big cause for concern.”

The Federation said owners that expect better business conditions within the next six months have decreased by eight points to a net -28%. It said this marker has declined 16 points since August to its lowest reading since January 2013.

The NFIB also said 50% of owners reported job openings that could not be filled, which increased one point from July and is a 48-year record high for the second straight month.

To read the NFIB’s full Small Business Optimism Index, click HERE.

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https://www.wibw.com/2021/09/18/kansas-small-business-owners-ask-legislators-step-uncertainty-rises-wake-covid-19-pandemic/