Americans for Tax Reform supports Amendment #5472 from Sen. John Thune (R-S.D.) to Democrats’ reckless tax and spend spree and urges all Senators to vote “Yes.”
Amendment #5472 from Sen. John Thune (R-S.D.) would remove harmful small business taxes that Democrats slipped into the 15 percent book tax by re-defining any company with private equity in its capital structure to be considered a subsidiary of that private equity firm for purposes of the tax. The amendment would also extend the limitation on the deduction of state and local taxes.
In the most recent version of the legislative text released Saturday, Democrats altered the language of the new 15 percent book minimum tax to now impact small to midsize businesses with profits well below the $1 billion in profits threshold Democrats claim.
As written, the provision now appears restructured to define any company with private equity in its capital structure to be considered a subsidiary of that private equity firm for purposes of the tax. This means that these companies would now be swept up in the new 15 percent tax on book income.
This provision would greatly expand the reach of the book minimum tax to apply to small and midsize companies that require capital investment to grow their business.
Americans for Tax Reform supports this amendment to strip this harmful provision and urges all Senators to vote “Yes.”