Connect with us

New Hampshire

Small business owners ask U.S. House tax writers to extend Trump-era deductions • New Hampshire Bulletin

Published

on

Small business owners ask U.S. House tax writers to extend Trump-era deductions • New Hampshire Bulletin


WASHINGTON – As Congress gears up for negotiations ahead of the 2017 tax law’s expiration, economists and small-business owners urged U.S. lawmakers Thursday to extend or make permanent the Trump-era tax cuts.

Business owners from West Virginia and Wisconsin testified at a hearing before members of the House Committee on Ways and Means, advocating for the continuation of deductions that they say allowed them to reinvest in their operations.

The Tax Cuts and Jobs Act of 2017, which expires at the end of 2025, allowed some business owners to deduct up to 20 percent of qualified business income. The bill also temporarily cut taxes on new equipment purchases and other qualified assets, but those incentives are phasing out.

For individuals, the TCJA temporarily lowered marginal tax rates across most income levels and expanded the standard deduction and child tax credit, among other changes.

Advertisement

Large corporations saw the top corporate tax rate permanently drop to 21 percent from 35 percent.

“Seven years ago, Republicans passed the Tax Cuts and Jobs Act under President Trump, delivering relief to millions of families and small businesses and creating the best economy in our lifetime,” Committee Chair Jason Smith, a Missouri Republican, said during his opening remarks.

“Here’s the bottom line: Congress must act soon to prevent what will be the largest tax hike in history on workers, families, farmers, and small businesses,” he later added.

Democrats on the committee slammed the bill as a “corporate tax giveaway.”

“We knew that their tax scam would disproportionately benefit the wealthy and well-connected. We knew that it wouldn’t pay for itself. We knew that big corporations, not their workers, would feel the most benefit,” said the committee’s ranking member, Richard Neal of Massachusetts.

Advertisement

The Democratic-invited witness, Kathryn Anne Edwards, a labor economist at the RAND Corporation, said “unless the intention of the 2017 tax law was to directly transfer income to the richest Americans at incredible expense to ordinary Americans, it was a failure.”

Extending the law could cost the government between $3.3 trillion and $3.6 trillion over the next 10 years, Edwards told the panel, citing estimates from the Committee for a Responsible Federal Budget and the Tax Policy Center.

A ‘landmark’ change

But small business owners say the law has been a financial lifeline.

Michael Ervin, founder of Coal River Coffee Company in St. Albans, West Virginia, told the panel that his five-year-old business has benefited from the 2017 tax code changes, particularly the temporary income deductions for sole proprietorships, partnerships, and S-corporations.

“After the passage of the Tax Cuts and Jobs Act, LLCs, and other pass-through businesses like mine were able to benefit from the newly minted Small Business Deduction, also known as the 199(a) deduction. This provision has allowed me to deduct up to 20 percent of my business income, which has let me invest in my business, my employees, and my community,” said Ervin, who employs roughly a dozen people.

Advertisement

If Congress does not extend the special deduction or make it permanent, Ervin told lawmakers that he will face a “significant tax hike” and be at a disadvantage compared to nearby large businesses.

“Down the street from my location is a larger competitor, Tim Hortons. In two years, if my taxes go up, the corporate rate will remain 21 percent. Tim Hortons will be paying a 21 percent federal rate and a 6.5 percent state corporate rate for a total combined rate of 27.5 percent, while my total combined rate will be closer to 45 percent. This disparity will make it extremely difficult for me to compete,” Ervin told lawmakers.

Austin Ramirez, president and CEO of the Wisconsin-based Husco International Inc., also told the panel that the pass-through deduction has “leveled our playing field with our peers organized as corporations.”

Husco, a privately held family-owned manufacturer of hydraulic and electromechanical parts for vehicles, employs about 1,600.

Ramirez said the TCJA enabled his business to do the “most significant renovation of our Waukesha, Wisconsin, headquarters in 70 years.”

Advertisement

The company has invested $50 million to renovate its office space and shop floor, allowing the addition of nearly $150 million to its top line since 2017, Ramirez said.

Temporarily extending Trump tax cuts

Going forward, Smith said, congressional tax writers should note that the law “provided a critical blueprint that Congress can build upon to make lasting improvements to our tax code.”

“The House has already shown strong bipartisan support for key provisions of the 2017 law by passing the Tax Relief for American Families and Workers Act earlier this year. But there is still much work to be done,” he said, referencing a bill he sponsored and negotiated with Democratic Sen. Ron Wyden of Oregon.

The hearing happened against the backdrop of stalled negotiations in the U.S. Senate on the act referred to by Smith, a short-term tax bill that garnered rare widespread bipartisan support in the House in January.

The bill, which would temporarily revive expired or expiring business tax breaks and expand the child tax credit, passed on a 357-70 vote.

Advertisement

While House Republicans overwhelmingly supported the legislation, GOP senators oppose provisions of the bill that would temporarily expand the refundable portion of the child tax credit and allow households to calculate the credit based on their previous year’s earnings, if higher than the current year’s.

Business owners at a February hearing before the Senate Committee on Finance implored the upper chamber to pass the bill.

Ramirez, the Waukesha business owner, also expressed on Thursday to the committee his support for the Tax Relief for American Families and Workers Act, which would revive an expired 2017 incentive for businesses that allowed them to immediately write off research and development expenses.

“Husco’s inability to expense these costs since 2022 has cost us more than $20 million in liquidity, wiping out a large portion of the TCJA benefits and creating a disincentive to invest in innovation,” Ramirez testified.

Other temporary measures enacted under the TCJA expire on Dec. 31, 2025.

Advertisement



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

New Hampshire

Child care in N.H. can be even more expensive than housing, food, and health care – The Boston Globe

Published

on

Child care in N.H. can be even more expensive than housing, food, and health care – The Boston Globe


CONCORD, N.H. — Some New Hampshire families are spending nearly one-third of their income on child care, according to a new analysis from the Carsey School of Public Policy at the University of New Hampshire. 

Child care costs have gone up significantly in recent years, swelling 48 percent from 2013 to 2023 in New Hampshire, the analysis found. And there was an uptick in costs in the post-pandemic years, growing 12.5 percent from 2022 to 2023. 

Take, for instance, a family with one infant and a 4-year-old going to a day-care center. They are spending, on average, $33,257 per year on child care: $17,250 per year for the infant, and $16,007 for the toddler, according to the nonprofit Child Care Aware of America.

With the median family in New Hampshire with children under 5 earning about $112,230, according to the analysis, that means about 29 percent of their income would have to go to child care alone.

Advertisement

In the course of a year, that would make child care the single biggest expense for many families, more than the cost of housing ($11,400 to $20,772), food ($12,456 to $13,068), and health care ($12,876 to $13,068), according to the New Hampshire Fiscal Policy Institute. 

“The prices are rapidly increasing,” said Tyrus Parker, a research scientist at the University of New Hampshire and co-author of the analysis. 

What is driving that? 

Advertisement

“I think the price increase is due to a mix of factors, although I’d be hard pressed to assign a share to any given factor,” said Jess Carson, director of the Center for Social Policy in Practice at UNH and co-author of the analysis. 

The increased cost of rent, utilities, food, and cleaning supplies also affects child-care providers, she said. Plus, there are workforce shortages that can drive up wages to recruit and retain staff, she said. If they don’t have enough staff, providers have to decrease their enrollment – but that doesn’t necessarily bring a proportional savings in operating costs, according to Carson. 

And, she said, now that pandemic-era aid has wound down, the only way providers can increase revenue is by increasing tuition. The economic impact can ripple out beyond the immediate families affected, taking parents who can’t afford child care out of the workforce. 

“Families have to make compromises based on their economic realities,” said Parker. 

“Maybe a family would like their child to be in care five days a week, but instead they have to opt for three days, and then one of the parents goes down to working part time just because the cost of child care is too high,” he said.

Advertisement

This story first appeared in Globe NH | Morning Report, our free newsletter focused on the news you need to know about New Hampshire, including great coverage from the Boston Globe and links to interesting articles from other places. If you’d like to receive it via e-mail Monday through Friday, you can sign up here.


Amanda Gokee can be reached at amanda.gokee@globe.com. Follow her @amanda_gokee.





Source link

Advertisement
Continue Reading

New Hampshire

Transportation officials warn N.H. customers of ‘smishing’ scam imitating E-ZPass invoice – The Boston Globe

Published

on

Transportation officials warn N.H. customers of ‘smishing’ scam imitating E-ZPass invoice – The Boston Globe


Jennifer Lane received a text message Tuesday afternoon purportedly alerting her to an outstanding “toll invoice” in New Hampshire. If she didn’t pay her $4.15 balance promptly, then a $35 late fee would be added, the message claimed.

Lane knew right away it was a scam. She’s the chief communications officer for the New Hampshire Department of Transportation, which manages the state’s E-ZPass electronic toll collection system, and her team had just sent out an alert a few hours earlier to warn customers about the con.

So she did exactly what the DOT’s heads-up had told the public to do if they receive such a message.

“I immediately reported it to my mobile carrier. I did not click on any links,” she said, adding that she would never give out personal or banking information when receiving a request via text message, email, or phone call.

Advertisement

If you know even the basics of cyber security, then you know “phishing” refers to the use of deceptive tactics online to trick someone into divulging sensitive information, such as by clicking a link in an untrustworthy email. When fraudsters use those tactics via texting — i.e., short message service, or SMS — that’s called a “smishing” scam.

The New Hampshire Department of Transportation said it was advised that an unknown number of Granite Staters are being targeted by an apparent smishing scam. It resembles cases that have been reported in other states in recent months, but the local messages are tailored to New Hampshire residents.

“It looks realistic, however the typos are obvious,” Lane said.

Advertisement

In this case, it seems the scammers are targeting phone numbers with 603 area codes, without any apparent insight into whether a number is affiliated with any of the state’s roughly 588,000 E-ZPass accounts, she said.

“Another employee in the office that does not have an E-ZPass received (a smishing message) as well,” she added.

New Hampshire’s E-ZPass will never send text messages requesting payment for tolls with late fees, according to the DOT’s message. Account holders should instead use the official NH Turnpike E-ZPass website or the NH E-ZPass mobile app.

If you receive a smishing text, you can alert your phone carrier by forwarding the suspicious message to 7726 (SPAM) and you can file a complaint with the FBI’s Internet Crime Complaint Center, the DOT noted.


This story first appeared in Globe NH | Morning Report, our free newsletter focused on the news you need to know about New Hampshire, including great coverage from the Boston Globe and links to interesting articles from other places. If you’d like to receive it via e-mail Monday through Friday, you can sign up here.

Advertisement

Steven Porter can be reached at steven.porter@globe.com. Follow him @reporterporter.





Source link

Continue Reading

New Hampshire

One killed, another seriously injured following fiery crash in NH

Published

on

One killed, another seriously injured following fiery crash in NH


Police are asking witnesses to come forward following a deadly crash on Wednesday night.

Troopers responding to a crash on I-93 near mile marker 32.4 in Bow around 5:41 p.m. for a report of a two-car crash found a white sedan and a blue SUV on fire in the woods off to the right side of the road, according to New Hampshire State Police.

An adult male who was driving the sedan was pronounced dead at the scene. His identity is not being released at this time pending next of kin notifications.

The driver of the SUV, an adult female, sustained serious injuries that aren’t believed to be life-threatening. She was transported to an area hospital.

Advertisement

Authorities closed Two lanes of I-93 southbound near the crash scene and they say drivers should seek alternate routes.

Investigators say there were multiple vehicles traveling at a high rate of speed prior to the crash. Anyone with information about what happened is asked to contact the Troop D barracks.

Members of the New Hampshire State Police Collision Analysis and Reconstruction (C.A.R.) Unit and the New Hampshire State Fire Marshal’s Office are investigating the cause of the crash. The Bow Fire Department and Concord Fire Department assisted at the scene.

The Office of the Chief Medical Examiner will conduct an autopsy on the deceased victim Thursday.

Download the FREE Boston 25 News app for breaking news alerts.

Advertisement

Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW





Source link

Continue Reading

Trending