The National Black Chamber of Commerce argued Tuesday that a proposal to overhaul the tax code could be particularly beneficial to minority-owned businesses.
House Speaker Paul Ryan and Rep. Kevin Brady introduced a blueprint last year aimed at overhauling the tax code. The National Black Chamber of Commerce (NBCC) believes the proposal would be particularly helpful to minority-owned businesses since many are small.
Small businesses have a lot to gain from tax and regulatory reform. They generally have less of an ability to absorb additional costs compared to larger businesses. A lower tax rate means small businesses face lower financial burdens. The Small Business Administration found that 15 percent of small businesses were minority-owned as of 2012.
“I think if the cost of doing business goes down, like corporate taxes, that’s going to be better for everybody,” NBCC President Harry Alford said during a teleconference call. “But it really affects the smaller guy. I think it will be 10 times more beneficial to a small business, which 98 percent of [our] membership is. They’ll all benefit, but I think it will be more so for the small businesses and minority businesses.”
The NBCC hosted the call to discuss the economic impact the blueprint could have on small and mid-sized businesses in states across the nation. The chamber previously released a memo detailing its support for the proposal last month. It even supports some of the more controversial provisions like the border adjustment tax.