Republicans’ victory in taking control of both the House and Senate in Tuesday’s midterm election may spell good news for business owners hoping to see tax relief in coming years.
Many business groups have been pressuring Congress and President Obama to enact business tax reforms, such as lowering the United States’ corporate tax rate and streamlining tax rules for small-business owners. Now that Republicans control both chambers of Congress, many business advocacy groups are hopeful that such measures will be high on Republicans’ agenda.
“Tax reform, tax reform and tax reform,” John Engler, president of the Business Roundtable, said when asked Tuesday about the top priorities of his group, according to The Wall Street Journal.
Corporate executives have complained that U.S. corporate tax rate, which is 35% on the federal level, is the highest in the developed world. Moreover, the U.S. government levies the tax on corporate profits earned abroad while many other countries only charge for corporate profits within their borders. These factors have led to a large number of “corporate inversions” in recent years—a controversial move in which companies buy a foreign company and move their headquarters abroad to minimize U.S. taxes.
– What the Midterm Elections Mean for Small Business Tax Reform (OPEN Forum)
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