Representative Angie Craig Introduces Legislation to Lower Federal Tax Rate for Small Businesses

WASHINGTON, DC — Today, U.S. Representative Angie Craig introduced legislation to lower the federal tax rate for small businesses, many of which are still struggling to overcome the impact of the COVID-19 public health and economic crisis. The ongoing pandemic has had a devastating impact on small businesses, forcing hundreds of thousands to close their doors – and leaving countless more on the brink of permanent closure.

Craig's legislation, the Small Business Tax Relief Act, would lower the current federal corporate income tax rate from 21% to 18% for the first $400,000 in taxable income for small businesses earning less than $5 million annually – extending critical relief to countless businesses nationwide.

"For nearly two years, small business owners have grappled with a struggling economy, ever-changing regulations and tax burdens far higher than that of many Fortune 500 corporations. It's long past-time that we recentered our economy around the businesses that make up 93% of employers in Minnesota's Second Congressional District," said Representative Craig. "We must do more to ensure that small business owners have the resources and support they need – not only to keep the lights on but to continue growing and expanding to serve as the economic engines of our local communities. Today, I'm proud to introduce legislation to provide relief to our small business community and support our nation's economic recovery – and will continue looking at additional ways to help lower tax burdens for small businesses."

Members of the business community in Minnesota applauded Representative Craig's efforts to lower tax burdens for struggling small businesses:

"Small businesses, which have faced unprecedented challenges over the past two years, make up the backbone of the American economy. And those businesses deserve every opportunity to grow and succeed," said Maureen Scallen Failor, President of the Dakota County Regional Chamber of Commerce. "We are fortunate to have leaders like Representative Craig fighting for us in Washington and working to lighten tax burdens that can limit the success experienced by entrepreneurial business owners all across the country."

"The lifeblood for every business, regardless of size or reach, is only as healthy as the available cash and liquidity of assets it either possesses or has access to. Small businesses in particular are extremely vulnerable and often the first to experience near fatal impacts due to external, uncontrollable local and national economic impacts that limit that reach," said David Garcia, Chief Executive Officer of AMMI Risk Solutions, which is located in Eagan. "Significantly lower taxes enable business owners to work on growth of the business instead of recovery of their business, which mitigates the unexpected external impacts. I appreciate and support Representative Craig's willingness and courage to enable Minnesota enterprises like ours to experience space to focus on the future with the least amount of distraction."

In Congress, Craig has long advocated for small businesses in Minnesota and across the country, which have accounted for more than 60% of net job creation over the past 25 years. Last summer, Craig led more than 100 of her colleagues from both parties in pressing House leadership to replenish the Restaurant Revitalization Fund (RRF) program, which was designed to support the hardest hit restaurants, bars and eateries. Craig also led more than 200 of her colleagues in an effort to stabilize and improve the Shuttered Venue Operators Grant (SVOG) program, which provides emergency assistance grants to venues that were unable to operate during the COVID-19 pandemic. Craig also invited Small Business Administrator Isabelle Guzman to Minnesota's Second Congressional District to meet with local small business owners and discuss how the federal government could best support their recovery. And just last week, the Committee on Small Business unanimously advanced Craig's SCORE for Small Business Act, a bill to reauthorize and improve training and support programs for beginning entrepreneurs.

###